Friday, December 16, 2011

Explaining New Gingrich’s Rise in the Polls – Tax Plan is the Largest in Terms of Tax Cuts for the Wealthy

Also Increases Deficit The Most – Another Appealing Feature to Conservatives

Now that he is rising to the top in the polls, Newt Gingrich is getting more attention and his policy prescriptions are getting more attention.  It turns out that Mr. Gingrich has a tax plan out there, a plan nobody paid any attention to because no one was paying any attention to Mr. Gingrich. Now people are looking at the plan.

The Gingrich plan has been public for weeks, but has gotten relatively little attention, particularly compared with the tax overhaul plans of Texas Gov. Rick Perry and businessman Herman Cain, who recently suspended his campaign.

NEWTTAXAnd what is so great about Mr. Gingrich’s plan?  Well it is this.

The study by the nonpartisan Tax Policy Center—a joint venture of the liberal Brookings Institution and the Urban Institute—offers insight at a time when Mr. Gingrich is moving to the fore among GOP candidates. It shows that the former House speaker's plan promises the largest tax breaks of all the GOP candidates' proposals, according to a Center analyst.

And who gets the overwhelming amount of the tax cuts.  For those who have been on Mars for the past several years, here is the result.

The Gingrich plan also gives the most lucrative tax breaks to the very wealthy, according to the study. That could offer President Barack Obama a target for political attacks. People making $1 million or more annually would receive an average tax break of about $614,000 in 2015 under the Gingrich plan, compared with current tax rates. Their average tax rates would fall to about 11.9% from 31.6%.

Gosh nobody saw that coming, did they.

As for the deficit, not to worry.  Like all good Conservatives Mr. Gingrich will increase the deficit.

But the study also suggests Mr. Gingrich's blueprint would take the biggest bite out of the government's finances, at a time when deficits have become a concern to voters, and particularly conservatives. Compared with current tax levels, it would cut the government's revenue by about 35%, or $850 billion, in 2015 alone, the study said.

There it is folks, mainstream Conservative thinking.  As for comparing the plan with the plan of former Massachusetts Governor Mitt Romney, the study said this.

Mr. Romney's tax plan hasn't yet been analyzed by the Tax Policy Center, because of a lack of detail.

Classic Mitt!!

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