2012 Presidential Hopeful Tax Plan: Gingrich

Newt Gingrich, Republican hopeful, has recently outlined his tax proposals. The highlights are here.

Gingrich's plan appears to allow taxpayers to choose between either (1) the current tax code (with the Bush/Obama tax cuts made permanent) or (2) a flat income tax at a 15% rate.

Additionally, his plan

• Eliminates capital gains tax,
• Reduces Corporate Income tax to 12.5%,
• Allows for 100% expensing deduction for new equipment,
• Eliminates the "death tax."

The optional flat tax (15% on income) would:

• Preserve charitable deduction, mortgage interest deduction and provide for a personal deduction of $12,000 for every American.

For more information, the Tax Policy Center has an interesting blog post that analyzes the economic effect of Gingrich's plan on both American households and federal revenues.