Showing posts with label Newt Gingrich. Show all posts
Showing posts with label Newt Gingrich. Show all posts

Saturday, January 14, 2012

Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot




Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot


Summary

On January 13, 2012, the Court denied a request, by Rick Perry and other candidates, to order the placement of their names on the Republican primary ballot in Virginia.  The decision was made by Judge John A. Gibney, Jr. of the Richmond Division of the United States District Court for the Eastern District of Virginia.

The original lawsuit was filed by Rick Perry. Newt Gingrich, Rick Santorum and Jon Huntsman also later intervened.

Virginia requires 10,000 valid signatures for a candidate to be placed on the ballot. The petitions can only be circulated by Virginia residents.  Perry, Gingrich, Huntsman and Santorum did not have the required number of valid signatures by the deadline of December 22, 2011.

All of them submitted fewer than 10,000 total signatures, except possibly Gingrich, who claims to have submitted 11,050.

Judge Gibney believed it would likely be declared unconstitutional to require the petitions to be circulated by Virginia residents, but he did not think the 10,000 signature requirement was unconstitutional.  He denied their request to be placed on the ballot because he felt the candidates should have filed suit earlier and the Court would have ordered the Board of Elections to not enforce the residency requirement. Then the candidates would have still been able to meet the 10,000 signature requirement before the deadline.

Basically they waited too long to file suit about the residency requirement, and now it’s too late for them to collect the 10,000 signatures to get themselves on the ballot before the January 21 deadline for absentee ballots to be mailed.  It's even too late for them to revise the absentee ballot in time to meet their deadline.


Virginia's 10,000 Signature Requirement

Candidates must file a petition "signed by at least 10,000 qualified voters, including at least 400 qualified voters from each congressional district in the Commonwealth." 

Code of Virginia § 24.2-545(B) 

The deadline to file the petitions with the State Board of Elections was December 22, 2011.

Rick Perry filed petitions with fewer than 10,000 signatures.

Newt Gingrich claimed to have filed 11,050 signatures. Virginia State Board of Elections stated that fewer than 10,000 were valid, but they didn't know the precise number of signatures.

Jon Huntsman did not file any petitions because he didn't have the 10,000 signatures.

Rick Santorum says he submitted more than 8,000 signatures, but he claims his petitions were denied because they didn't have 10,000 total signatures.

Generally, candidates try to collect more than the required number of signatures, in case some of the signatures are invalid.  Newt Gingrich is the only one who might have collected more than 10,000 total signatures.  The rest of the candidates collected fewer than 10,000 signatures.

The candidates complained that the 10,000 signature requirement is unconstitutional as unreasonably burdensome.  Also, they complained that they couldn't get the 10,000 signatures because of Virginia's residency requirement.


Virginia's Residency Requirement

According to the Virginia State Board of Elections, the person who circulates the petition must sign an affidavit at the bottom the petition: 

(i) My resident address is ____

(ii) I am, or I am eligible to be, a registered and qualified voter in Virginia in the County/City of ____

(iii) I am, or eligible to be, qualified to vote for the office for which this petition is circulated

(iv) I personally witnessed the signature of each person who signed this page or its reverse side. 

http://www.sbe.virginia.gov/cms/documents/20120306SBE-545_letter.pdf 

Basically the petition circulators must be Virginia residents.

The candidates claim they could have met the 10,000 signature requirement if they had been able to use non-residents to circulate petitions in Virginia.

Joe Allbaugh, the national campaign chair for Rick Perry, testified that Perry has thousands of out-of-state volunteers lined up to circulate petitions in Virginia.

Blake Harris, the ballot access coordinator for the Huntsman campaign, testified that buses of college students from Washington, D.C. were available as petition circulators.

Mark Tate, the Virginia ballot access coordinator for Santorum for President, listed five individuals who collected signatures in Virginia that were unable to be counted because of the residency restriction. 

Judge Gibney's Findings

http://docs.justia.com/cases/federal/appellate-courts/ca4/12-1042/12/ 

The Court believes that the residency requirements for petition circulators will likely be declared unconstitutional, and the plaintiffs will ultimately prevail. (p. 18) 

The Court finds that the plaintiffs are not likely to prevail on their challenge to the 10,000 signature requirement.  The Court, therefore, cannot fashion relief that does not include compliance with the 10,000 signature requirement. (p. 20) 

Had the case been timely filed, the Court would have ordered the defendants not to enforce the residency requirement for petition circulators, and the plaintiffs could have tried, with the expanded pool of campaign workers, to get the 10,000 signatures. (p. 22) 

The plaintiffs have waited too long to file, and the doctrine of laches bars their claim.  The Commonwealth is far along in the electoral process.  The primary election is so close that the plaintiffs cannot gather the requisite signatures to get on the ballot. (p. 22)

The hearing was January 13.  Virginia’s primary is March 6.  That is 53 days later.  Is the election too close that the plaintiffs cannot gather the rest of their signatures in time to get on the ballot?

The answer lies with absentee ballots.

Absentee Ballots

Judge Gibney noted: 

To comply with federal law, absentee ballots must be distributed on or before January 21, 2012. (p. 11)

According to the Uniformed and Overseas Citizens Absentee Voting Act, 42 U.S.C. §1973ff-1(a)(8)(A), absentee ballots must be mailed “at least 45 days before an election for Federal Office, not later than 45 days before the election.”

The Virginia primary is March 6.  45 days before that day is January 21.  This hearing was on January 13. 

Don Palmer, the Secretary of the State Board of Elections, testified that "as of this date, absentee ballots cannot be prepared before they must be available." (p. 11)

Saturday, December 17, 2011

Calculate Your Income Tax Under the GOP Candidates' Plans




Calculate Your Income Tax Under the GOP Candidates' Plans


Use this calculator to find out how much income tax you would pay under the tax plans of Newt Gingrich, Jon Huntsman, Rick Perry or Ron Paul.  Simply fill in your 2011 income and filing status and click the "Calculate" button to see the results.  You may also claim your spouse, children or other deductions by filling in the respective fields.


Enter your values for the 2011 tax year


Income:

Spouse
Number of Children:

Mortgage Interest:
State and Local Taxes:
Charitable Contributions:
Capital Gains and Dividends:

Filing Status:

Single
Married filing jointly
Married filing separately
Head of household (with qualifying person)
Qualifying widow(er) with dependent child





Results


Newt Gingrich:

Rick Perry:

Ron Paul:

Jon Huntsman:


Michele Bachmann, Gary Johnson, Mitt Romney, Rick Santorum do not have specific enough plans to calculate.





Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/calculate-your-income-tax-under-gop.html

Tuesday, December 13, 2011

The Republican Candidates Individual Income Tax Plans




The Republican Candidates Individual Income Tax Plans


Michele Bachmann

We need to reduce the number of tax brackets.

http://www.michelebachmann.com/issues/americanjobsrightnow/

It appears to be the closest to Jon Huntsman’s plan.  Although she never mentions eliminating any deductions and credits. 

Newt Gingrich

Newt Gingrich’s individual income tax plan is a 15 percent optional flat tax with some deductions and credits.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-newt-gingrichs-individual.html 

Jon Huntsman

Jon Huntsman’s individual income tax plan eliminates all deductions and credits (besides the standard deduction and exemption) and reduces the marginal tax rates to 8, 14 and 23 percent.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-jon-huntsmans-individual.html

Gary Johnson

Simplify the tax code; stop using it to reward special interests and control behavior.

http://www.garyjohnson2012.com/issues/economy-and-taxes

Mitt Romney

Pursue a conservative overhaul of the tax system over the long term that includes lower, flatter rates on a broader base.

http://www.mittromney.com/jobs/tax

Ron Paul

Ron Paul’s individual income tax plan is eliminating the individual income tax.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-ron-pauls-individual-income.html

Rick Perry

Rick Perry’s individual income tax plan is a 20 percent optional flat tax with a few deductions.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-rick-perrys-individual.html

Rick Santorum

Rick Santorum’s individual income tax plan is:
  • Cut the number of tax rates to 2 rates - 10% and 28%
  • Triple the personal deduction for each child
  • Eliminate marriage tax penalties
  • Retain deductions for charitable giving, home mortgage interest, healthcare, retirement savings, and children
http://www.ricksantorum.com/pressrelease/santorum-releases-made-america-plan-revitalize-us-economy.

 

Link to this article:


http://articlesonpolitics.blogspot.com/2011/12/republican-candidates-individual-income.html

Republican Candidate’s Effective Individual Income Tax Rates




Republican Candidate’s Effective Individual Income Tax Rates


Summary

For singles, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

For married couples with no children, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.  Although, both Ron Paul and Newt Gingrich have a 0 percent rate between $20,000 and $40,000 ($60,000 if they take all the deductions.)

As far as married couples with children, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000 to $80,000 (depending on family size), after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000 to $70,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

Ron Paul

Ron Paul’s plan is simple.  It eliminates the income tax, so everybody pays a 0 percent rate.

Rick Perry

To calculate the taxes under Rick Perry’s plan, the income was subtracted by the $12,500 standard exemption ($25,000 for married couples and $12,500 per dependent or child.) For those who itemize, the average mortgage interest, state and local taxes and charitable contribution deductions were taken from the IRS statistics for 2009. Those with the standard deduction only deducted state and local taxes.  The remainder is the taxable income, which was multiplied by 20 percent to get the total tax.
 
Here are the effective 2010 tax rates for those who only take the standard exemption and deduct the average state and local taxes:

Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 0.00% 4.29% 9.32% 11.71% 13.06% 13.90% 14.77% 15.07% 15.62% 15.28% 16.39% 17.34% 17.83%
0 0.00% 0.00% 0.99% 5.46% 8.06% 9.73% 11.20% 11.95% 12.84% 12.78% 15.14% 16.84% 17.58%
married 1 0.00% 0.00% 0.00% 0.00% 3.06% 5.57% 7.63% 8.82% 10.06% 10.28% 13.89% 16.34% 17.33%
filing 2 0.00% 0.00% 0.00% 0.00% 0.00% 1.40% 4.06% 5.70% 7.29% 7.78% 12.64% 15.84% 17.08%
jointly 3 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.49% 2.57% 4.51% 5.28% 11.39% 15.34% 16.83%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 0.00% 0.00% 2.42% 6.08% 8.41% 9.69% 11.16% 11.61% 12.54% 11.83% 13.57% 15.38% 16.32%
0 0.00% 0.00% 0.00% 0.00% 3.41% 5.52% 7.59% 8.48% 9.76% 9.33% 12.32% 14.88% 16.07%
married 1 0.00% 0.00% 0.00% 0.00% 0.00% 1.35% 4.02% 5.36% 6.99% 6.83% 11.07% 14.38% 15.82%
filing 2 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.45% 2.23% 4.21% 4.33% 9.82% 13.88% 15.57%
jointly 3 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.43% 1.83% 8.57% 13.38% 15.32%

Newt Gingrich

To calculate the taxes under Newt Gingrich’s plan, the income was subtracted by the $12,000 personal deduction ($48,000 for married couples.) For those who itemize, the average mortgage interest and charitable contribution deductions were taken from the IRS statistics for 2009 (which is the latest version.)  The remainder is the taxable income, which was multiplied by 15 percent to get the total tax.  Then the Child Tax Credit and Earned Income Tax Credit were subtracted from the tax, where applicable.

Here are the effective 2010 tax rates for those who only take the standard personal deduction:

Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 -2.60% 6.00% 9.00% 10.50% 11.40% 12.00% 12.43% 12.75% 13.00% 13.20% 14.10% 14.64% 14.82%
0 -4.50% 0.00% 0.00% 0.00% 0.60% 3.00% 4.71% 6.00% 7.00% 7.80% 11.40% 13.56% 14.28%
married 1 -30.50% -15.25% -5.60% -0.20% 0.00% 1.33% 3.29% 4.75% 5.89% 6.80% 11.40% 13.56% 14.28%
filing 2 -40.10% -25.15% -10.77% -2.80% 0.00% 0.00% 1.86% 3.50% 4.78% 5.80% 11.40% 13.56% 14.28%
jointly 3 -45.10% -28.30% -12.87% -4.38% 0.00% 0.00% 0.43% 2.25% 3.67% 4.80% 11.40% 13.56% 14.28%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 -2.60% 0.00% 3.83% 6.28% 7.91% 8.84% 9.72% 10.15% 10.69% 10.61% 11.99% 13.17% 13.69%
0 -4.50% 0.00% 0.00% 0.00% 0.00% 0.00% 2.01% 3.40% 4.69% 5.21% 9.29% 12.09% 13.15%
married 1 -30.50% -15.25% -5.60% -0.20% 0.00% 0.00% 0.58% 2.15% 3.58% 4.21% 9.29% 12.09% 13.15%
filing 2 -40.10% -25.15% -10.77% -2.80% 0.00% 0.00% 0.00% 0.90% 2.47% 3.21% 9.29% 12.09% 13.15%
jointly 3 -45.10% -28.30% -12.87% -4.38% 0.00% 0.00% 0.00% 0.00% 1.36% 2.21% 9.29% 12.09% 13.15%

Jon Huntsman

To calculate the taxes under Jon Huntsman’s plan for 2010, the income was subtracted by a $3,650 exemption for the individual, spouse and children. Then it is subtracted by the standard deduction, which is $5,700 for singles and  $11,400 for married filing jointly. The result is the taxable income.  The tax brackets shown in the previous sections were used to calculate the tax.  The first $34,000 ($68,000 for married) of taxable is taxed at 8 percent.  After that, the taxable income is taxed at 14 percent, if there is any, and so on according to the rates.

Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 0.52% 4.26% 5.51% 6.13% 7.30% 8.42% 9.22% 9.81% 10.28% 10.65% 13.17% 19.07% 21.03%
0 0.00% 0.52% 3.01% 4.26% 5.01% 5.51% 5.86% 6.13% 6.56% 7.30% 10.65% 17.56% 20.28%
married 1 0.00% 0.00% 2.04% 3.53% 4.42% 5.02% 5.45% 5.77% 6.01% 6.79% 10.40% 17.39% 20.19%
filing 2 0.00% 0.00% 1.07% 2.80% 3.84% 4.53% 5.03% 5.40% 5.69% 6.28% 10.14% 17.22% 20.11%
jointly 3 0.00% 0.00% 0.09% 2.07% 3.26% 4.05% 4.61% 5.04% 5.36% 5.77% 9.88% 17.05% 20.03%

Comparison of All the Effective Rates

Here are the numbers in charts:


Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates up until around $20,000.  After that it is Rick Perry until around $40,000.  After that it is Jon Huntsman until the income is into the six figures when it becomes Newt Gingrich again.

However, for those who only take the standard deduction it is Newt until $15,000.  Then it is all Jon Huntsman until the income is in the six figures when it becomes Newt again.



Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates the whole time.

For those who only take the standard deduction, Newt is still the lowest, except between $80,000 and $200,000 when Jon Huntsman has the lowest rates.



For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000.  Ron Paul has the lower rates above $70,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:






For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $75,000.  Ron Paul has the lower rates above $75,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $60,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:






For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $80,000, after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $70,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

 

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/effective-tax-rates-for-all-plans.html

Friday, December 9, 2011

Analysis of Newt Gingrich’s Individual Income Tax Plan




Analysis of Newt Gingrich’s Individual Income Tax Plan


Summary

Newt’s individual income tax plan is a 15 percent optional flat tax with some deductions and credits.  Wealthy taxpayers will see huge tax cuts.  Lower income tax payers will pay roughly the same.  In between, the taxes decrease as income increases and family size decreases. Most families will receive a net tax refund.
  • It is an optional 15 percent flat tax.
  • There is a $12,000 personal deduction per adult.
  • A married couple can deduct $48,000.
  • Mortgage interest and charitable contributions can also be deducted.
  • It keeps the Earned Income Tax Credit and $1,000 Child Tax Credit.
  • Wealthy taxpayers receive huge tax cuts under the plan.
  • Low income taxpayers receive little or no tax cuts.
  • In between, tax cuts get larger as income increases and/or family size decreases.
  • Very few taxpayers lose money under the plan compared to the current tax code.  When they do, it is less than $20.
  • Married couples, who currently itemize their deductions, may reach $60,000 to $80,000 without paying any tax, depending on family size and deductions. If they have children, they will also get a refund from the Child Tax Credit.
  • The flat tax is still progressive because of the deductions and credits, especially the $48,000 personal deduction for married couples.
  • Anyone can deduct charitable contributions. This could lead to an increase in deductions for charitable contributions and possibly more people donating to charity.

What is Newt Gingrich’s Individual Income Tax Plan?

Newt Gingrich’s tax plan is an optional 15 percent flat tax.  Like most flat taxes, he exempts income near the poverty threshold.  Here is how it is described:

This optional flat tax system will create a new personal deduction for every adult of $10,000 to $12,000 (double for married couple), which would be above the established poverty level at $40,000 to $48,000.


That is a somewhat awkward sentence.  At first it seems that a married couple gets 2 deductions of $12,000.  Then it seems that he is saying the poverty level is $40,000 to $48,000.  However, the poverty level is not $48,000, and $40,000 and $48,000 are 4 times larger than $10,000 and $12,000. It appears that the husband and wife both take a $12,000 deduction for a total of $24,000, and then, as a married couple, the total amount is doubled from $24,000 to $48,000. The same calculation can be used to get $40,000 from $10,000.

In his 21st Century Contract with America, he mentions $12,000 as the deduction amount.  Thus, a married couple receives a $48,000 personal deduction, and a single individual gets a $12,000 deduction. That means a married couple with an income at $48,000, or below, is paying $0 tax.  

The plan also provides the option to deduct mortgage interest and charitable donations.

After that, the leftover income is taxed at a flat 15 percent rate.  Then, the plan keeps the current Child Tax Credit, which is $1,000 per child (16 or younger), so a married couple with 2 children doesn’t start paying taxes until over $60,000.  It’s even higher if they have a mortgage or donate to charity. 

The Child Tax Credit is refundable, which means that if it reduces the tax below $0, the taxpayer receives a refund for the amount.
For example, the couple with 2 children making $60,000 deducts $48,000, so the remaining $12,000 ($60,000 - $48,000) is taxed at 15 percent. The tax is $1800 (15% of $12,000), but they receive a $1000 credit for each of their 2 children.  The $2000 credit is more than the $1800 tax, so they get a $200 refund.

Also, the plan keeps the Earned Income Tax Credit, which is a refundable tax credit for lower income households.

How much do people pay under Newt Gingrich’s Plan?

To calculate the taxes under Newt Gingrich’s plan, the income was subtracted by the $12,000 personal deduction ($48,000 for married couples.) For those who itemize, the average mortgage interest and charitable contribution deductions were taken from the IRS statistics for 2009 (which is the latest version.)  The remainder is the taxable income, which was multiplied by 15 percent to get the total tax.  Then the Child Tax Credit and Earned Income Tax Credit were subtracted from the tax, where applicable.

Here is how much people pay under Newt’s income tax plan in 2010 if they only took the standard deduction:


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 $260 ($1,200) ($2,700) ($4,200) ($5,700) ($7,200) ($8,700) ($10,200) ($11,700) ($13,200) ($28,200) ($73,200) ($148,200)

0 $450 $0 $0 $0 ($300) ($1,800) ($3,300) ($4,800) ($6,300) ($7,800) ($22,800) ($67,800) ($142,800)
married 1 $4,050 $4,050 $2,680 $1,080 $700 ($800) ($2,300) ($3,800) ($5,300) ($6,800) ($22,800) ($67,800) ($142,800)
filing 2 $5,060 $7,030 $5,230 $3,120 $1,700 $200 ($1,300) ($2,800) ($4,300) ($5,800) ($22,800) ($67,800) ($142,800)
jointly 3 $5,560 $8,210 $6,860 $4,750 $2,700 $1,200 ($300) ($1,800) ($3,300) ($4,800) ($22,800) ($67,800) ($142,800)

Red and in parenthesis means they pay taxes. Otherwise, they receive a refund in the amount shown.

Here is how much people pay under Newt’s income tax plan in 2010 if they deduct mortgage interest and charitable contributions (at the average rate):


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 $260 $0 ($1,148) ($2,511) ($3,957) ($5,304) ($6,804) ($8,122) ($9,622) ($10,613) ($23,978) ($65,836) ($136,854)

0 $450 $0 $0 $0 $0 $0 ($1,404) ($2,722) ($4,222) ($5,213) ($18,578) ($60,436) ($131,454)
married 1 $4,050 $4,050 $2,680 $1,080 $1,000 $1,000 ($404) ($1,722) ($3,222) ($4,213) ($18,578) ($60,436) ($131,454)
filing 2 $5,060 $7,030 $5,230 $3,120 $2,000 $2,000 $596 ($722) ($2,222) ($3,213) ($18,578) ($60,436) ($131,454)
jointly 3 $5,560 $8,210 $6,860 $4,750 $3,000 $3,000 $1,596 $278 ($1,222) ($2,213) ($18,578) ($60,436) ($131,454)

Single people get a $12,500 deduction, so they don't pay taxes when their income is below that.  It is more if they take the mortgage and charity deductions. The same is true for married couples at or below their $48,000 deduction.  If the married couples have children, they get refunds when their income is up to $60,000 to $80,000 because they have the Earned Income Tax Credit (EITC) and the Child Tax Credit.  Singles and couples also get a refund from the EITC.

How Does Newt Gingrich’s Plan Compare to the Current Tax Code?

The 2010 taxes under the current tax code are calculated using only the standard deduction and personal exemptions.  The Child Tax Credit and Earned Income Tax Credit were taken where possible. For those who itemize deductions, the average total itemized deductions from the IRS statistics for 2009 (which is the latest version) were used instead of the standard deduction.

Here is how much people would have gained under Newt’s income tax plan in 2010 if they only took the standard deduction:


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 $63 ($17) ($17) ($17) $650 $1,650 $2,650 $3,650 $4,650 $5,898 $19,831 $76,171 $176,171

0 ($7) $131 $1,133 $2,361 $3,561 $3,561 $3,561 $3,461 $3,594 $4,394 $16,208 $70,963 $170,963
married 1 $0 $0 $767 $1,811 $3,014 $3,014 $3,014 $2,914 $2,714 $3,481 $15,186 $69,686 $169,686
filing 2 $0 ($6) $401 $1,397 $2,466 $2,266 $2,466 $2,366 $2,166 $2,569 $14,164 $68,700 $168,408
jointly 3 ($1) ($6) $34 $1,032 $1,919 $1,919 $1,919 $1,819 $1,619 $1,656 $13,613 $68,700 $167,131

Red numbers in parenthesis means they lose money under Newt Gingrich’s Plan.

Here are the gains for those who also itemize their deductions at the average rate:


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 ($3) $34 ($18) ($8) $46 $59 $1,059 $1,603 $2,603 $2,412 $10,395 $50,001 $128,921

0 ($7) $0 $738 $1,583 $2,826 $4,124 $4,220 $3,919 $3,719 $3,008 $9,307 $46,787 $125,707
married 1 $0 $0 $372 $1,215 $2,279 $3,576 $3,672 $3,372 $3,172 $2,461 $8,285 $45,510 $124,430
filing 2 $0 ($6) $4 $847 $1,731 $3,029 $3,125 $2,824 $2,624 $1,913 $7,354 $44,749 $123,152
jointly 3 ($1) ($6) ($2) $482 $1,348 $2,481 $2,577 $2,277 $2,077 $1,366 $6,441 $44,749 $121,875


Let’s look at the numbers in a chart:



This is why the chart doesn't include $200,000 and above:



As with most flat taxes, the wealthy get huge tax cuts.  The lower income taxpayers get little or no tax cuts.  Taxpayers get better tax cuts as their income increases and their family size decreases to single. Very few taxpayers lose money.  When they do lose money it is less than $20.  The tax is optional, so those taxpayers can opt for the current system.

The 15 Percent Flat Tax is Still Progressive

Here are the effective 2010 tax rates for those who only take the standard personal deduction:


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 -2.60% 6.00% 9.00% 10.50% 11.40% 12.00% 12.43% 12.75% 13.00% 13.20% 14.10% 14.64% 14.82%

0 -4.50% 0.00% 0.00% 0.00% 0.60% 3.00% 4.71% 6.00% 7.00% 7.80% 11.40% 13.56% 14.28%
married 1 -40.50% -20.25% -8.93% -2.70% -1.40% 1.33% 3.29% 4.75% 5.89% 6.80% 11.40% 13.56% 14.28%
filing 2 -50.60% -35.15% -17.43% -7.80% -3.40% -0.33% 1.86% 3.50% 4.78% 5.80% 11.40% 13.56% 14.28%
jointly 3 -55.60% -41.05% -22.87% -11.88% -5.40% -2.00% 0.43% 2.25% 3.67% 4.80% 11.40% 13.56% 14.28%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:


Children $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 $500,000 $1,000,000
single 0 -2.60% 0.00% 3.83% 6.28% 7.91% 8.84% 9.72% 10.15% 10.69% 10.61% 11.99% 13.17% 13.69%

0 -4.50% 0.00% 0.00% 0.00% 0.00% 0.00% 2.01% 3.40% 4.69% 5.21% 9.29% 12.09% 13.15%
married 1 -40.50% -20.25% -8.93% -2.70% -2.00% -1.67% 0.58% 2.15% 3.58% 4.21% 9.29% 12.09% 13.15%
filing 2 -50.60% -35.15% -17.43% -7.80% -4.00% -3.33% -0.85% 0.90% 2.47% 3.21% 9.29% 12.09% 13.15%
jointly 3 -55.60% -41.05% -22.87% -11.88% -6.00% -5.00% -2.28% -0.35% 1.36% 2.21% 9.29% 12.09% 13.15%

The negative numbers represent taxpayers who get money back from the Earned Income Tax Credit and the Child Tax Credit.  The zeros come from those who eliminate their tax using deductions and credits.

As with most of the flat taxes, this tax is not actually flat.  It is progressive mostly because of the $12,000 personal deduction, which is $48,000 for a married couple.

Unique Features of the Plan

Newt does a couple of things that makes this more friendly to the taxpayer compared to other flat taxes.  Firstly, he makes it optional, so nobody is losing money.  Flat taxes are especially punitive on the lower income taxpayers, but this plan is neutral to them.  Secondly, he includes the Earned Income Tax Credit and the Child Tax Credit, so it is more friendly to families and those below the poverty line.  The $48,000 personal deduction for married couples combined with the Child Tax Credit gives refunds to a lot of low and middle income families.

More Deductions of Charitable Contributions (and Possibly More Charitable Contributions)

There is an interesting difference here between this and the current tax code. Under the current tax code, the choice is between the standard deduction or itemized deductions, so a taxpayer can only deduct something if their itemized deductions are more than the standard deduction (typically that means they have a mortgage or large medical bills.)  Under this plan, anyone can deduct charitable contributions.

This could lead to more people deducting their charitable contributions, and it may lead to more people giving to charity.


Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-newt-gingrichs-individual.html