Newt Gingrich on Taxes

Last Updated : Jan 14, 2012

Summary

Congressman Gingrich has long advocated for reducing taxes as much as possible. He views obtaining the lowest possible tax burden on the population as in the best interests of  the economy, and the duty of the representative. He has advocated for the elimination of the death tax or estate tax, for the elimination of the capital gains tax, and the reduction of the business tax. He does not support raising taxes to decrease the deficit as he does not believe the increase in taxation will be met in a similar reduction in spending.

Speaker Gingrich supports the Bush tax cuts. In 2006, he argued for their extension by stating that allowing them to lapse would be the largest tax increase in history. His 2012 tax plan has the permanent extension of those cuts as one of its primary components.

In March of 2008, Speaker Gingrich began to advocate for an optional flat rate tax that people would be able to opt into if they desired. He placed the level of taxation at around 17% for all people and corporations. He claimed that roughly 42% of the nation would pay no taxes under this system. Congressman Gingrich has proposed a 15% optional flat tax as part of his 2012 tax platform. As part of this system, he also proposed replacing the current $3,700 tax exemption with  a $12,000 one.

Speaker Gingrich somewhat supports a Fair Tax consumption tax method. However, he would not support enacting such a measure until the income tax was ended so that both did not exist at the same time. He also noted that there would need to be an enforcement bureau to ensure that companies were paying the sales tax.

Speaker Gingrich has consistently argued throughout the 2012 campaign that the capital gains tax should be ended and that the corporate tax rate should be reduced by half. His 2012 tax plan mirrors these ideas.

  • Stop the 2013 tax increase to promote stability in the economy. Job creation moved from stagnant to improving in the two months after Congress extended tax relief for two years. We should continue what has worked by making the rates permanent.
  • Make the United States the most desirable location for new business investment through a bold series of tax cuts and regulatory reforms, including:rn
    • Eliminating the capital gains tax to make American entrepreneurs more competitive against those in other countries;
    • Dramatically reducing the corporate income tax (the highes in the world) to 12.5%;
    • Allowing for 100% expensing of new equipment to spur innovation and American manufacturing;
    • Ending the death tax permanently.

 

The American Eleven

In September of 2006 Congressman Gingrich released an article through the Human Events website noting eleven items he believes should be pursued. One of those items was repealing the Death Tax.

 

Opposition to 2006 Bush Tax Expiration

In April of 2007, Congressman Gingrich wrote an article for Human Events discussing his opposition to allowing the Bush tax cuts to expire in 2006.

 

The Fair Tax

In 2007, Speaker Gingrich was asked about the Fair Tax system. He states that he supports the tax in theory, but that any effort to enact the measure would have to end the income tax at the same time so that Congress did not have both mechanisms to slowly raise rates. He also states that it is disengenuos to state that the fair tax system does not require an enforcement provision such as the IRS, it just shifts the enforcement from the taxpayer to the business that would collect the sales tax.

 

Support for Tax Reform

In March of 2008, Congressman Gingrich issued an article for Human Events noting his support for tax reform and for a possible flat tax.

 

Exactly Wrong Economy

In May of 2009, Congressman Gingrich wrote an article for his bog titled "Exactly Wrong Economy." In that article, he discusses the need to lower the business tax.

 

Opposition to Tax Increases

On January 22, 2009 Congressman Gingrich appeared on Fox News and spoke about his opposition to tax increases in balancing the budget.

 

Arguments for Ending the Capital Gains Tax

On August 13, 2009 Congressman Gingrich wrote an article in which he described the history of the capital gains tax, and then makes a series of arguments for ending the captal gains tax.

 

5 Ways to Create Job

In May of 2010, Congressman Gingrich spoke at the Latino coalition and stated that he supported 5 tax cuts. These cuts were 

  • 50% reduction is social security and medicare taxes for both the employer and the employee
  • 100% for all new equipment
  • make the capital gains tax rate 0%
  • make the corporate tax rate 12.5% (as in Ireland)
  • abolish the death tax (estate tax)

 

 

Palmetto Forum

In September of 2011, Speaker Gingrich participated in the Palmetto Forum in South Carolina that was hosted by Senator Jim DeMint. He outlines five points for his tax and economic plan. First, he would repeal Dodd-Frank. Second would be replacing the EPA with an environmental solutions agency. Third would be the repeal of Sarbanes-Oxley. Fourth would be a reform of the FDA. He then states that for taxes he would have no tax increase in 2013, 0 the capital gains rate, go to a 12.5% corporate tax rate, go to 100% expensing for farms and factories to compete with China, end the death tax permanently, and create an "American Energy Tax plan."

 

TEA Party Debate

In September of 2011, Congressman Gingrich participated in the TEA Party debate for the Republican primary. He spoke about current tax cuts and subsidies.

 

Western Debate

In October of 2011, Congressman Gingrich participated in the Western Debate on CNN. He was asked about tax reform and specifically Herman Cain's proposal of 9-9-9. He states that he supports more specific tax cuts and reform.

 

Michigan Economic Debate

In November of 2011, Congressman Gingrich participated in the Michigan economic debate. He discussed his views on taxes and the need for lower regulation.

 

2012 Presidential Campaign Website Statements

 

 

 

Sponsored and Cosponsored Legislation

This representative has not been identified as sponsoring or cosponsoring significant legislation related to this title.

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