Where is the OUTRAGE???
Gingrich Tax Plan Would Add $1.3 Trillion to Deficit, Study Says
By Richard Rubin and Heidi Przybyla - Dec 13, 2011 12:00 AM ET
The tax plan proposed by Republican presidential candidate Newt Gingrich would add $1.3 trillion to the U.S. budget deficit in 2015 alone, a new analysis shows, complicating his goal of balancing the government’s books.
The analysis by the nonpartisan Tax Policy Center compares the federal government’s take under Gingrich’s proposal with projected U.S. revenue if current tax law ran its course and existing income tax cuts expired as scheduled after 2012.
The study found that Gingrich’s plan to lower the top individual rate to 15 percent and eliminate taxes on capital gains and estates would push federal revenue for 2015 below the government’s fiscal 2011 collections as a share of the economy. Federal revenue is near postwar lows because of the economic downturn.
“It blows a huge hole in the deficit,” said Roberton Williams, a senior fellow at the center, which released the report yesterday in Washington.
The Congressional Budget Office estimates that the government will collect $3.7 trillion in 2015, meaning that Gingrich’s tax plan would result in a 35 percent cut in federal revenue and a $1.5 trillion deficit, assuming no additional spending cuts or economic growth spurred by the tax cuts.
Gingrich’s plan would leave enough money to cover the cost of so-called mandatory spending, a category that includes Medicare, Medicaid and Social Security, along with part of the interest on the U.S. debt. Dedicating the money for those purposes wouldn’t leave any funds for defense spending or any other federal agency.
more:http://www.bloomberg.com/news/2011-12-12/gingrich-plan-yields-deep-tax-cuts-for-top-earners-study-finds.html
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