Giuliani's Shock-and-Awe Tax Plan

My pal and blogger Andy Roth over at the Club for Growth just sent me this E-mail with a few more details and a sprinkling of analysis about Rudy Giuliani's $6 trillion tax plan, which would be the largest tax cut in the history of the American republic. Actually, of any republic—ours, Rome's, Greece's. Just huge:

$6.3 trillion over 10 years.

Make permanent the Bush tax cuts NOW...not in 2010

Permanently index AMT and then eliminate it when practical (no timetable).

Get rid of the Death Tax

Lower cap gains and dividend rate to 10% and index to inflation.

Lower corp rate from 35% to 25%.

Trio of tax free savings accounts—Roth style—available to ALL income classes.

• Retirement account ($5000 year/single, $10k year/couple, draw only at retirement)
• General account (same limits, available at any time for any reason)
• Lifetime skills account (only for education, job training, $1000 year/single)

Tax simplification strategy—one page tax return

Three rates—10% (40k), 15% (150k), and 30% (150k+).

It's an optional tax plan. You can pick it or the current tax code. Unlike [the Fred] Thompson plan, you can opt in and out any year. Four major deductions remain:

• Mortgage
• Charitable
• State and Local taxes
• Child tax credit

This plan would be huge. It would be 4% of GDP. By comparison, [the George W. Bush] tax cut was 1.3% of GDP. Reagan's was 1.9% of GDP.