Gingrich's "Mitt Romney Flat Tax"

Redress · Jan 19, 2012

When word that Romney paid ~ 15 % effective rate, Gingrich made a joke about renaming his plan the "Mitt Romney Flat Tax" since every one would be paying about 15 %. Well, that claim got fact checked and I found the result amusing. Under Gingrichs plan, every one could choose to either continue with their current taxes, or switch to his plan witch is basically a 15 % flat tax with a small number of exemptions. Where it gets amusing though is that under Gingrich's plan, Romney would actually see his effective rate drop to about 0 %. Make what you want, I just found it amusing.

The details: FactCheck.org : Gingrich’s Plan: Nearly Zero Tax for Romney

Under the Gingrich tax plan, individuals could continue under the current tax policy or elect to pay a 15 percent flat tax. Gingrich would keep deductions on charitable giving and home ownership, and create a new personal deduction of $12,000 for everyone.

But here’s the part that would greatly enhance Romney’s bottom line: Under Gingrich’s plan, capital gains, dividends and interest income would not be taxable. Based on Romney’s financial disclosure form and what Romney said this week, that’s most of his income. In other words, his effective tax rate might be closer to zero. It wouldn’t actually be zero, though, because he’d still have to pay 15 percent on the (“not very much”) $374,000 he made in speaker fees.

Gingrich's "Mitt Romney Flat Tax"

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Redress

Liberal Fascist For Life!