Chart of the Day: The Gingrich Tax Plan

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

Via Matt Yglesias, I see that the Tax Policy Center has completed a preliminary analysis of Newt Gingrich’s tax plan. You will be entirely non-shocked to learn that it’s pretty much the same as every other Republican tax plan: it offers only modest cuts for poor and middle-class taxpayers but gigantic cuts for the well-off and the rich. In order to make sure that not a single person would even theoretically pay higher taxes under his plan, Newt uses the dodge pioneered by Rick Perry that allows taxpayers to choose between the current tax code and the Gingrich plan. However, he goes Perry one better by being even more brazenly pro-millionaire with an effective rate of 11.2% for anyone earning more than a million dollars per year.1 Take that, cowboy!

According to TPC, the Gingrich plan would lower federal tax revenue by $1.28 trillion in 2015 compared with current law, roughly a 35 percent cut in total projected revenue. I assume that Gingrich’s plan to make up for this loss involves some handwaving about economic growth, but I don’t have the energy to try and find the official explanation.

1The “current rate” numbers are based on the assumption that the Bush tax cuts expire as scheduled. They look a little different if you assume that the Bush cuts are extended. But as I said about the Perry Plan, why would anyone bother to extend the Bush tax cuts if you’re going to pass a shiny new plan that just replaces the current code anyway?

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate