Gingrich Campaign Press Release - Let's Bump Plans: A Comparison of Gingrich and Romney's Tax Plans
| Gingrich | Romney | Verdict: Gingrich Plan Better |
|
|---|---|---|---|
| Personal Income Tax | Choice of current system or 15% flat tax with personal, homeowner, and charitable deductions |
Maintain current tax rates |
The Gingrich plan gives Americans a choice to continue to file under the existing system, or to eliminate compliance costs and hours of paperwork by filing with a flat rate of 15%. The Romney plan hopes to make taxes "flatter" in the future, but offers no immediate choice and no immediate relief. |
| Capital Gains Tax for Individuals | Eliminate tax completely |
Depends how much money the taxpayer makes. Romney's plan eliminates capital gains taxes for those making less than $200,000/year, but maintains the current system, with rates of up to 35%, for the rest. |
The Gingrich plan maximizes the capital investment and job creation that will accompany the elimination of this tax, and acknowledges that a tax reform is only fair if all Americans receive relief. The Romney plan determines that some Americans should pay no taxes on a particular investment, while other Americans should pay taxes of up to 35% on the same investment. |
| Capital Gains Tax for Corporations | Eliminate tax completely | Maintain current system | The Gingrich plan is modeled on the success of the 1997 capital gains cut, which spurred job creation and a 500% increase in venture capital in just 3 years. The Romney plan maintains the corporate capital gains tax, an unequivocal burden on American job-creators who need to be freed to grow, prosper, and compete in a 21st century global economy. |
| Corporate Income Tax | 12.5% | 25% |
The Gingrich plan will create a boom of new American entrepreneurship by dramatically cutting the corporate tax rate to one of the lowest in the developed world. The Romney plan will still be average-to-high compared to the rest of the developed world, and still over 50% higher than our closest economic competitor Canada, which has a rate of only 16.5%. Gingrich rate makes U.S. more competitive than Canada. |
| Payroll Tax | Eventually replace payroll tax with personal accounts, financing better results |
No information |
Gingrich supports personal savings investment and insurance accounts that would eventually be expanded to finance all of the benefits now financed by the payroll tax, allowing that tax ultimately to be phased out altogether. |
| Medicare reform | Choice between the traditional system or opportunity to purchase private insurance with premium support | No information |
Under the Gingrich Plan, any American who wants to enjoy the existing Medicare system will be able to do so. Americans can also opt to transition to a more personalized system in the private sector with greater options for better care, where they would receive premium support to purchase private insurance. |
Newt Gingrich: a clear record of job creation
The Newt Gingrich record on jobs and prosperity is clear: During his Speakership, Americans created over 11 million new jobs. Entrepreneurs invested historic amounts of venture capital following the biggest capital gains tax cut history. Manufacturing grew steadily, with nearly 17.5 million Americans working in the sector by the time he left office in 1999.
As president, Gingrich will adopt the same proven job creating policies he employed as Speaker, as well as those implemented by Ronald Reagan, to restore economic growth and job creation in America: a bold series of tax cuts and regulatory reforms, unleashing American energy, and returning power to the states.
Romney Record: lost jobs, companies fled Massachusetts
Under Mitt Romney's management, jobs in Massachusetts grew by barely 1%, companies regularly departed for more business-friendly states and nearly 40,000 of the Bay State's manufacturing jobs evaporated.
Click here for a side-by-side comparison of Gingrich and Romney's manufacturing plans.
Newt Gingrich, Gingrich Campaign Press Release - Let's Bump Plans: A Comparison of Gingrich and Romney's Tax Plans Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/297723