What Is Newt Gingrich"s Tax Plan For America?
The tax issue will continue to draw onlookers as Newt Gingrich, Rick Santorum, and Mitt Romney head closer to deciding once and for all the rightful holder of the Republican Presidential Nomination for this November.
Of the three tax plans, Newt Gingrich's is said to favor more investors than blue collar Americans.
Whether that's true probably depends on whether you are fiscally conservative or liberal.
Step 1: Giving individuals the choice Gingrich allows individuals to choose how they wish to be taxed.
They can either continue under the existing system, or they can try to simplify matters and opt to pay a flat 15 percent tax outright.
This plan has received plenty of criticism in that many billionaire or millionaire corporations would not have to pay very much in way of taxes, especially if they earn most of that money through investing (see Step 3).
On the other hand, it could simplify a confusing, frustrating and scary time for millions and millions of Americans, who want to do the right thing but are incapable of deciphering what that right thing is, since the current tax code is millions of words in length, and tax accountants differ on the interpretation.
Step 2: Continuing deductions, higher exemptions The Newt Gingrich tax plan stands by the long held deductions of home ownership and charitable giving.
If one chooses to give to a church, hospital, or any other 501(c)(3) organization, then whatever the amount of that donation would come straight off the taxable income amount in April.
In addition to this, Gingrich would like to see exemptions move up from around $9,000 per person to $12,000, further lowering the tax burden on many Americans, especially those in the lower classes.
While this sounds good on the surface, some have criticized him for not doing enough to close loopholes that find the rich effectively paying in nothing in taxes.
Step 3: Capital gains tax free Like Mitt Romney's plan, the capital gains thing would be an outright thing of the past under Gingrich.
Romney's plan doesn't go quite as far as what Gingrich's done in getting rid of the capital gains altogether, so that those who make the brunt of their income through stock and mutual fund investing could keep every single penny of what they put in.
While some have criticized this as unfair to the poor, there is the argument that investment money is cash, which has already been taxed in some capacity.
Even in cases where capital gains money makes more capital gains money, the origin point of those funds had to have been taxed at some point, so is it fair to go in and re-tax someone on the freight they've already paid? Americans are somewhat divided on this issue.
Of the three tax plans, Newt Gingrich's is said to favor more investors than blue collar Americans.
Whether that's true probably depends on whether you are fiscally conservative or liberal.
Step 1: Giving individuals the choice Gingrich allows individuals to choose how they wish to be taxed.
They can either continue under the existing system, or they can try to simplify matters and opt to pay a flat 15 percent tax outright.
This plan has received plenty of criticism in that many billionaire or millionaire corporations would not have to pay very much in way of taxes, especially if they earn most of that money through investing (see Step 3).
On the other hand, it could simplify a confusing, frustrating and scary time for millions and millions of Americans, who want to do the right thing but are incapable of deciphering what that right thing is, since the current tax code is millions of words in length, and tax accountants differ on the interpretation.
Step 2: Continuing deductions, higher exemptions The Newt Gingrich tax plan stands by the long held deductions of home ownership and charitable giving.
If one chooses to give to a church, hospital, or any other 501(c)(3) organization, then whatever the amount of that donation would come straight off the taxable income amount in April.
In addition to this, Gingrich would like to see exemptions move up from around $9,000 per person to $12,000, further lowering the tax burden on many Americans, especially those in the lower classes.
While this sounds good on the surface, some have criticized him for not doing enough to close loopholes that find the rich effectively paying in nothing in taxes.
Step 3: Capital gains tax free Like Mitt Romney's plan, the capital gains thing would be an outright thing of the past under Gingrich.
Romney's plan doesn't go quite as far as what Gingrich's done in getting rid of the capital gains altogether, so that those who make the brunt of their income through stock and mutual fund investing could keep every single penny of what they put in.
While some have criticized this as unfair to the poor, there is the argument that investment money is cash, which has already been taxed in some capacity.
Even in cases where capital gains money makes more capital gains money, the origin point of those funds had to have been taxed at some point, so is it fair to go in and re-tax someone on the freight they've already paid? Americans are somewhat divided on this issue.
