Capital Commerce

The Gingrich Middle-Class Tax Cut

By James Pethokoukis

Posted: November 20, 2008

Now was that so hard? Want to boost the economy? Cut taxes. Newt Gingrich, in the WSJ, proposes cutting the 25 percent tax bracket to 15 percent, basically creating a 15 percent flat tax for 90 percent of all Americans. As Gingirch puts it:

"This would be much more effective than Mr. Obama's tax plan with it's $1.3 trillion in redistributive tax credits, as well as yet another so-called stimulus package based on another $300 billion or more in increased government spending.'"

Me: Gingrich's plan makes it even clearer to me that John McCain should have made tax reform the centerpiece of his campaign, particuarly the idea of creating a two-rate structure -- 25 percent and 10 percent. Instead, Obama won the "tax cutter" mantle and the presidency.

High tax rates is NUTZ!

Fifty percent? Am I nuts? Nope."

Yes you ARE NUTS! That rate will destroy economic growth and yield nothing in new revenues about what a 30-30% rate would get. Studies have been done on this - the revenue gains from tax rates top out at 35%.

Anything about 35% is pure socialistic redistributive 'tax the rich' nonsense.

" We need a federal government that is not broke, and we need to discourage excess. "

Well, screwing the economy is step #1 in making the govt broke.

Step two is over-spending. If you want to reduce deficits, CUT THE SPENDING STUPID.

"Get some guts and fix the mess Reagan started. " Reagan grew the economy 1/3rd and set us up for 25 YEARS OF PROSPERITY since then! An economy and standard of living that doubled, that's not a mess, that is success. Your plan will kill the success that is America.

Travis M. of TX @ Nov 25, 2008 13:26:12 PM

Oh my gosh

dude....socialism didn't work

Brett S of GA @ Nov 21, 2008 02:15:45 AM

Nothing wrong with just two rates. Buth they should be 10% to $40,000 ($80,000 for couple) and 50% for all income above those levels.

Fifty percent? Am I nuts? Nope. We need a federal government that is not broke, and we need to discourage excess. There is very little good reason to have quarter million dollar doctors and lawyers with multimillion dollar entertainment "stars" alongside $40,000 teachers and blue collar people WHILE THE GOVERNMENT CONTEMPLATES A TRILLION DOLLAR DEFICIT FOR A SINGLE YEAR ON TOP OF A $11 TRILLION DEBT.

Get some guts and fix the mess Reagan started.

of @ Nov 20, 2008 11:10:10 AM

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Capital Commerce

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U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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