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Jane Richey / February 27, 2012

Gingrich’s Economic Plan is Most Pro-Growth

While Mitt Romney has only just come out with a new 20% income tax economic plan, after months of campaigning, Stephen Moore, senior economics writer for the Wall Street Journal, says Newt Gingrich’s plan is indeed the most pro-growth.

According to Mr. Moore, Mr. Gingrich’s economic plan is the boldest plan of the candidates, with a 15% optional flat tax and a Social Security reform proposal that will allow young workers to take a share of their payroll tax dollars and place them into a personal IRA, rather than the current traditional Social Security fund which, according to the Congressional Budget Office (CBO), is broke.

Reagan economists Gary Robbins and Peter Ferrara have scored Mr. Gingrich’s plan using dynamic, rather than static, scoring, a method which takes into account behavioral reactions to changes in tax policy. In other words, when people and companies pay less in taxes, they tend to do things like start new businesses, hire more employees, and invest more money. Their conclusion is that the former speaker’s economic plan will provide six million new jobs in two years, and balance the budget within the first term of his presidency.

Click here for more details on the plan.

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Filed Under: Constitutionally Limited Goverment, Fiscal Responsibility, Free Markets, Politics Tagged With: economic plan, Newt Gingrich, pro-growth, Social Security, taxes

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