Speaking in an exclusive Newsmax interview, Gingrich sounded the alarm that raising taxes could cause serious damage to the economic recovery. "If we have large tax increases in January," Gingrich told Newsmax.TV, "this economy will sink deeper into recession. There will be higher unemployment. The recovery will be longer.
"This was exactly the mistake made in 1937 and 1938, and it created a second mini-Depression. I think it's very dangerous, and I think the simple battle cry ought to be no tax increase in 2011, period. Keep current tax law exactly as it is through 2011," said Gingrich.
Gingrich charged that the high unemployment that continues to plague the economy stems from "an administration which consistently has been destroying American jobs."
He cited the financial reform legislation that the president recently signed into law as an example of "one more job-killing bill" passed by Democrats.
When asked to give his recommendations for curing the nation's ongoing economic woes, the former Speaker pointed to the five-point agenda on his AmericanSolutions.com Web site, which is included in the Economic Freedom Act recently submitted to Congress by Rep. Jim Jordan, R-Ohio, and Rep. Jason Chaffetz, R-Utah.
That legislation endorsed by AmericanSolutions calls for:
* A 50 percent cut in the Social Security and Medicare tax, both for the employer and the employee.
* Zero capital gains tax, which is the rate in China.
* A 12.5 percent corporate tax rate, which is the rate in Ireland.
* A 100% write-off annually for small businesses to buy new equipment, so workers have the best, most modern equipment.
* Permanent elimination of the estate or "death" tax "so people have an incentive to work and save their entire lifetime.
"We think those five tax changes would dramatically accelerate economic growth and help the economy," Gingrich tells Newsmax.
Additionally, Gingrich said the release of the Wikileaks documents on Afghanistan should be considered an "unconscionable" act of treason. He said it isn't only that the documents were leaked. "I think we should also be very, very strong in our condemnation of the newspapers that published them," Gingrich said.
10 comments:
Both sides offer nothing but talking points and very little objective analysis.
Talk Pt.1 "large tax increase". The vast majority of people and small businesses would not see a tax increase as long as the $250,000 threshold is applied
Talk Pt. 2'high unemployment stems from an administration....destroying jobs"
No dummy, businesses aren't hiring because there is low demand for their goods.
TP 3 SS and medicare cut: will you be honest enough to tell the load of seniors and soon to be retirees the fate of their benefits under this proposal
TP4 0 capital gains: China already owns the companies dummy
TP 5 estate tax: 97% of you will never ever deal with this tax. How many of you didn't work and save your entire life until Bush cut the estate tax earlier this decade.
I'm all for a fiscal policy that includes low spending and lower taxes. But we don't need some nutjob from the right with half baked ideas implementing policy anymore than we need half-baked ideas from the left. This is what you get though when you allow the idealogues and 24hr news cycle to run things.
Lowering taxes have a proven track record of stimulating the economy which is one of our biggest problems . The biggest issue right now is to protect the Constitution from being destroyed if we preserve this and shrink government replace the sitting socialists with conservative Constitutionalists the economy will recover on it's own.
Obama is nothing more than a celebrity President proven yesterday on the view aka the new Jerry Springer show !
Reduced taxs and increase spending, under Bush, got us in the mess we are in now.
11:53 It is Clinton's pressuring of the banking system to give loans to people that didn't qualify for them that caused this mess. Geez go get some lime Kool-Aid and eat your bologna samich.
Interpol should take in Julian Assange of Wikileaks the mainstream is just hearing about him now but for decades his cyber activities amount to terrorism and he knows it living underground and constantly on the run
11:35, lowering taxes is great. But spending has to be put in check. Problem is niether your friends on the right nor the pansies on the left want to pony up to real cuts. Sure Reps will scream about WIC and public housing and whip the idealogical base to a frenzy. But while they chip away at miniscule pieces, the true big spending items continue to weigh us down.
Tax cuts are great if you also cut spending to match. Neither party ever does that. Bush turned a 150 billion dollar /year surplus into a 600 billion dollar / year deficit , before the financial crisis arrived, in just this way.
The estate tax in particular effects hardly anyone, just the rich. If it effects family farms, close that loophole.
1:12, nearly 40% of residential housing was investment/vacation housing at the height of the bubble. These are the same homes now glutting the market. But yet you scream kool aid. Stop sucking on Rush's teet and open up a book on your own sometime.
What part of shrinking government did you miss ?
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