Real Change, by Rep. Newt Gingrich (R, GA): on Tax Reform
Newt Gingrich:
Flat tax proposal criticized for losing popular tax breaks
Four out of five Americans would like to have the option of a one-page tax form with a single tax rate. This concept of an optional flat tax rate was developed by Steve Forbes when his flat tax campaign was undermined by criticisms that it would take
away popular tax breaks. Forbes proposed giving American taxpayers an opportunity to choose simplicity versus complexity and a single rate over a lot of deductions. They call it the free choice flat tax, and it's an idea whose time has come.
All workers and corporations would have the freedom to choose each year to file their income taxes either under the new free choice flat tax option or under the current US income tax code.
Rhode Island adopted an optional flat tax, and lawmakers there expect that it will make the state more competitive with neighboring states in attracting new business and entrepreneurs who create jobs.
Source: Real Change, by Newt Gingrich, p.143-144
Dec 18, 2007
Newt Gingrich:
Tax hikes retard growth and depress revenues
What we learned in 1995, and what we must recognize today, is that there are four key principles to achieving a balanced budget: - Cut taxes to increase economic growth and therefore increase revenues. It may seem counterintuitive--and it certainly
is to elite editorial writers--but cutting taxes to increase economic growth is the best long-term strategy for balancing the budget. Tax hikes retard economic growth and depress revenues.
- Set priorities and increase spending in key areas while
reducing it in non-essential areas.
- Eliminate pork barrel spending. One of the reasons I strongly favor a balanced budget commitment is because it disciplines politicians.
-
Shift from expansive, wasteful systems to smarter spending. Modern corporations that achieve success do so by being smarter and more productive, not just by being cheaper.
Source: Real Change, by Newt Gingrich, p.178-181
Dec 18, 2007
Steve Forbes:
Optional flat tax: 17% with $13,200 deduction
This concept of an optional flat tax rate was developed by Steve Forbes when his flat tax campaign was undermined by criticisms that it would take away popular tax breaks. Forbes proposed giving American taxpayers an opportunity to choose simplicity
versus complexity and a single rate over a lot of deductions. They call it the free choice flat tax, and it's an idea whose time has come.All workers and corporations would have the freedom to choose each year to file their income taxes either under
the new free choice flat tax option or under the current US income tax code. Anyone who strongly favors a deduction or credit under the federal government's current complex income tax system would have the choice to keep filing that way.
The free choic
flat tax option would apply one single tax rate of 17% to all individuals and corporate taxpayers. It would also include a standard exemption of $13,200 for each adult and a $4,000 exemption for each child.
Source: Real Change, by Newt Gingrich, p.143-144
Dec 18, 2007
Page last updated: Feb 21, 2019