Gingrich Presents His Tax Plan in New Hampshire

Speaking to an audience at New Hampshires St. Anselm College in Manchester, Newt Gingrich laid out a tax plan that claims will shift nearly 2/3 of the people on unemployment and dependent on government, into becoming independent, self sufficient, taxpayers and thereby be the single biggest step you can take back toward balancing the budget,

The former Speaker of the House and likely presidential candidate called for cutting the capital gains tax to zero, making the so-called George Bush tax cuts permanent, eliminating the estate tax, an allowance for companies to write off 100% of new equipment purchases in the first year, and a 12.5 percent corporate tax rate.

Gingrich explained that reasonable tax rates will prevent companies like General Electric from sheltering profits to avoid paying federal taxes. He also stated that the slight increase of jobs recently added to the market only occurred after President agreed to extend the Bush tax cuts for another year. He added though, that businesses still remain leery to adding jobs because those tax cuts are set to expire and if they do, businesses will take a hit that they are prepared for.

Gingrichs plan is seemingly sound, but is it truly brave and bold, or is it just the same cut tax mantra that Republicans have always rightly called for? Dont get me wrong, tax cuts are necessary, but we can keep on raising and lowering taxes and tinkering with a broken tax code for the next two hundred years. Or we can fix the broken and antiquated tax system by calling for bold reforms such as a flat tax.

Personally I am disappointed in Newts tax proposal. As someone who has a proven record as an innovator, I expect more from him than the same old solution, a solution we must repeat every time Democrats raise taxes. A Flat tax would truly spur economic growth. In the case of former Soviet bloc nations, such a taxcode created some of the fastest growing economies in the world. A Flat tax is one rate for one nation and its time for Republicans to demonstrate the will to bring about true reform and show some true vision.