Why Gingrich's Tax Plan Beats Romney's

[Guest]

Arthur L, Ecomonist (Laffer curve) wrote an article for WSJ 1/31/12 (today) with the above-named title. Here is an excerpt from that article: "Hong Kong where there has been a 15% flat tax (Gingrich Plan) on individuals since 1947 is truly a shining city and one of the most prosperous cities in history . Ireland 12.5% flat business income tax. propelled the Emerald Isle out of two and half centuries of poverty" Romney's tax proposal including eliminating the death tax, reducing corporate tax rate to 25% and extending the current tax on personl income, interest, dividends and capital gains would be an improvement over President Obama's but they don't have the boldness, internal integrity of Mr. Gingrich's personal and business flat taxes."

Translated: If you are the 49% not paying taxes you will gain more with Obama, lose more with Gingrich and remain neutral with Romney.

If you are that so called 1% you lose with Obama, fare better with Gingrich and God bless Romney for the windfall...just keep those big bonuses coming

If you are the middle class you will continue to lose with Obama, and you will lose with Romney because his plan will create a greater tax obligation as he shift more of that obligation from his rich buddies to the middle class.

congratualtions to those of you who voted for Romney, if elected you just increased your tax obligations.

P.S. In its entirety Laffer further illuminates why gingrich's plan is superior.

[Guest]

Arthur L, Ecomonist (Laffer curve) wrote an article for WSJ 1/31/12 (today) with the above-named title. Here is an excerpt from that article: "Hong Kong where there has been a 15% flat tax (Gingrich Plan) on individuals since 1947 is truly a shining city and one of the most prosperous cities in history . Ireland 12.5% flat business income tax. propelled the Emerald Isle out of two and half centuries of poverty" Romney's tax proposal including eliminating the death tax, reducing corporate tax rate to 25% and extending the current tax on personl income, interest, dividends and capital gains would be an improvement over President Obama's but they don't have the boldness, internal integrity of Mr. Gingrich's personal and business flat taxes."

Translated: If you are the 49% not paying taxes you will gain more with Obama, lose more with Gingrich and remain neutral with Romney.

If you are that so called 1% you lose with Obama, fare better with Gingrich and God bless Romney for the windfall...just keep those big bonuses coming

If you are the middle class you will continue to lose with Obama, and you will lose with Romney because his plan will create a greater tax obligation as he shift more of that obligation from his rich buddies to the middle class.

congratualtions to those of you who voted for Romney, if elected you just increased your tax obligations.

I just watched a news clip of Romney speaking for himself and I think the above quote is not a complete and fair representation of his tax plan.
It's true that he would only reduce the corporate tax rate to 25%, which could be seen as not being bold enough, but there's more: Anyone earning less than $200,000 per year would pay no tax on savings, dividend interest and no tax on capital gains. In the mean time, he would extend the Bush tax cuts. It doesn't happen all at once: There's a first wave and second wave. This sounds like a good deal for the middle class, especially those of us who are retired and trying to protect and grow our retirement savings.

P.S. The above is from my notes as it was not in writing, it was a news clip. There may be some aspects of his plan that I didn't cover above, due to time constraints.

[Guest]

Arthur L, Ecomonist (Laffer curve) wrote an article for WSJ 1/31/12 (today) with the above-named title. Here is an excerpt from that article: "Hong Kong where there has been a 15% flat tax (Gingrich Plan) on individuals since 1947 is truly a shining city and one of the most prosperous cities in history . Ireland 12.5% flat business income tax. propelled the Emerald Isle out of two and half centuries of poverty" Romney's tax proposal including eliminating the death tax, reducing corporate tax rate to 25% and extending the current tax on personl income, interest, dividends and capital gains would be an improvement over President Obama's but they don't have the boldness, internal integrity of Mr. Gingrich's personal and business flat taxes."

Translated: If you are the 49% not paying taxes you will gain more with Obama, lose more with Gingrich and remain neutral with Romney.

If you are that so called 1% you lose with Obama, fare better with Gingrich and God bless Romney for the windfall...just keep those big bonuses coming

If you are the middle class you will continue to lose with Obama, and you will lose with Romney because his plan will create a greater tax obligation as he shift more of that obligation from his rich buddies to the middle class.

congratualtions to those of you who voted for Romney, if elected you just increased your tax obligations.

P.S. In its entirety Laffer further illuminates why gingrich's plan is superior.

If you're part of that 49% who's not paying taxes, why should you gain more than paying ZERO????

Everyone should have to pay at least something, i.e. 1% for those under $50,000 or so.

[Guest]

I would be amazed and shocked if the US Congress would pass any type of fixed rate tax plan regardless of who is President and which party is in control. Much easier to refine what is in place. Who am I kidding?
Of course IMHO.

[Guest]

If you're part of that 49% who's not paying taxes, why should you gain more than paying ZERO????

Everyone should have to pay at least something, i.e. 1% for those under $50,000 or so.

Hi lovetv and villages PL My intent was only to post Laffer's remarks and my interpretation. The issue with the 49% is that Obama would continue entitlements whereas under the 15% flat tax they would pay something.

However having said that my personal conviction is that its all pie in the sky. The issue of taxes, ie, needed revenue to run this country is complex for many reasons including the biggest that some people love to spend other peoples money. I am very leery of any flat tax plan because I believe it will come with many conditions or add ons and many of us will end up paying more. Look what happen in Europe with the value added tax.

My interest and focus is to first determine how my president views the national budget and his rationale. If you have built business or personal budgets , especially business budgets you know that there are a number of ways to fudge after all who wants to come up short if you miscalulated or an unforseen events could wreck your plan. There is a lot of hidden money built into those budgets Bottomline then is how my president is going to cut back on spending and in what areas, etc...you get the picture

I don't believe we have to reinvent the tax system but we do have to make a number of adjustments that returns more money back in the pockets of people. I would say close the loopholes but in reality tax accounts/lawyers etc get paid good money to search out new ones...but we should try. But more importantly the president, really Congress should cut back big time on business regulations. The Sarbanes Oxley Act was an over reaction to Enron and is killing many businesses. The new Consumer Fraud Act (Dodd-Frank) is Sarbanes on steroids.

Unfortunately for voters all we ever get are promises. Its the one reason I favored the Tea Party movement..at least they forced some issues

I hope I didn't under talk you just expressing my humble view of the world of politics.

Personal Best Regards

[Guest]

........I don't believe we have to reinvent the tax system but we do have to make a number of adjustments that returns more money back in the pockets of people. I would say close the loopholes but in reality tax accounts/lawyers etc get paid good money to search out new ones...but we should try. But more importantly the president, really Congress should cut back big time on business regulations. The Sarbanes Oxley Act was an over reaction to Enron and is killing many businesses. The new Consumer Fraud Act (Dodd-Frank) is Sarbanes on steroids.

Unfortunately for voters all we ever get are promises. Its the one reason I favored the Tea Party movement..at least they....

The statements in bold in the quote above illustrate why we should scrap and replace the tax code with a flat tax or other simple, transparent method. The current monstrosity is so complex and convoluted and BIG that nobody BUT the tax accountants and lawyers can even begin to understand and see where the loopholes are......the loopholes that favor the corporate criminals and scr** the average hourly or salaried taxpayer or small business owner who cannot pay to have teams of tax lawyers on retainer.

[Guest]

The statements in bold in the quote above illustrate why we should scrap and replace the tax code with a flat tax or other simple, transparent method. The current monstrosity is so complex and convoluted and BIG that nobody BUT the tax accountants and lawyers can even begin to understand and see where the loopholes are......the loopholes that favor the corporate criminals and scr** the average hourly or salaried taxpayer or small business owner who cannot pay to have teams of tax lawyers on retainer.

ilovetv: I do agree with you except I do not believe, nor trust, that politicians will scrap the entire tax system and replace it with a flat tax. I believe that we will end up with both a flat tax and then pols will continue with add ons until we return to the mess were in now.

The best way to prevent more taxes is to stop them from spending on a lot of nonsense