Gingrich proposed tax cuts would add at least $1.3 trillion to deficit

Sounds like Newt’s fiscal conservatism is as sincere as his marriage vows. About the last thing the US needs now is another trillion dollars of spending on things that won’t efficiently stimulate the economy (aka tax cuts) on top of what the Bush wars and policies left. All of this leads to the next step that conservatives love, which is then scream about the need to cut spending and strict austerity. Austerity in these times only delays recovery, but we already know that. Bloomberg:

The tax plan proposed by Republican presidential candidate Newt Gingrich would add $1.3 trillion to the U.S. budget deficit in 2015 alone, a new analysis shows, complicating his goal of balancing the government’s books.

The analysis by the nonpartisan Tax Policy Center compares the federal government’s take under Gingrich’s proposal with projected U.S. revenue if current tax law ran its course and existing income tax cuts expired as scheduled after 2012.

The study found that Gingrich’s plan to lower the top individual rate to 15 percent and eliminate taxes on capital gains and estates would push federal revenue for 2015 below the government’s fiscal 2011 collections as a share of the economy. Federal revenue is near postwar lows because of the economic downturn.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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