Lost in the roaring rhubarb between conservative talk show host Rush Limbaugh and Republican National Committee chairman Michael Steele was Newt Gingrich’s speech last Friday before the Conservative Political Action Conference.
Gingrich was only a few of the score of prominent speakers who offered specific proposals to help Republicans regain control of Congress and the White House — other than the GOP mantra of lowering taxes and reducing spending.
He cited his political action committee’s 12 solutions as the path to economic recovery. He mentioned two in his speech: (1) Eliminate capital gains tax as they have in China; (2) Lower corporate tax rates to 12.5% as they have in Ireland. Nothing novel there.
Think what you may of Gingrich, but the guy is a saddlebag of ideas, something currently lacking in most Republican think tanks at this juncture in history. I checked out his 12 solutions on his website. Here’s what I found followed by my comments:
(1) Payroll Tax Stimulus. With a temporary new tax credit to offset 50% of the payroll tax, every small business would have more money, and all Americans would take home more of what they earn.
Cutting the payroll tax in half would have crippling long-term shortfall of Social Security and accelerate its current path to bankruptcy.
(2) Real Middle-Income Tax Relief. Reduce the marginal tax rate of 25% down to 15%, in effect establishing a flat-rate tax of 15% for close to 9 out of 10 American workers.
It is unclear whether the flat tax would eliminate deductions and other adjustments on earnings.
(3) Reduce the Business Tax Rate. Match Ireland’s rate of 12.5% to keep more jobs in America.
Despite Ireland’s low rate, the country is staggering in the global economic meltdown as much or more than nations with much higher rates such as Britain, France and Germany.
(4) Homeowner’s Assistance. Provide tax credit incentives to responsible home buyers so they can keep their homes.
This proposal fails to offset the higher interest rates many banks have slapped on homeowners who acquired loans through their home equity but still manage to make their mortgage payments while the value of their homes have sunk as much as 50%.
(5) Control Spending So We Can Move to a Balanced Budget. This begins with eliminating Congressional earmarks and wasteful pork-barrel spending.
Pork represents only a small fraction of Congressional appropriations, according to the Congressional Budget Office. It is an inartful practice but the only practical way a Congressmen can deliver federal funds for projects to his constituents.
(6) No State Aid Without Protection From Fraud. Require state governments to adopt anti-fraud and anti-theft policies before giving them more money.
This is a rather bewildering “solution” since the allocation of federal money is already spelled out in rules the feds are supposed to enforce.
(7) More American Energy Now. Explore for more American oil and gas and invest in affordable energy for the future, including clean coal, ethanol, nuclear power and renewable fuels.
The “Drill here. Drill now” slogan Gingrich clamored for last year revitalized Congressional Republicans. However, the first national energy policy in 30 years is being formulated now by the Obama administration. The results, in principle, will be designed to increase U.S. independence from foreign oil.
(8) Abolish Taxes on Capital Gains. Match China, Singapore and many other competitors. More investment in America means more jobs in America.
(9) Protect the Rights of American Workers. We must protect a worker’s right to decide by secret ballot whether to join a union, and the worker’s right to freely negotiate. Forced unionism will kill jobs in America at a time when we can’t afford to lose them.
This proposal has merits only if it closes the disparity of earnings ratio between employees and employers which was 30% 20 years ago but widened to 300% in recent years.
(10) Replace Sarbanes-Oxley. This failed law (enacted after the Enron fiasco) is crippling entrepreneurial startups. Replace it with affordable rules that help create jobs, not destroy them.
(11) Abolish the Death Tax. Americans should work for their families, not for Washington.
Killing the estate tax is long overdue.
(12) Invest in Energy and Transportation Infrastructure. This includes a new, expanded electric power grid and a 21st century air traffic control system that will reduce delays in air travel and save passengers, employees and airlines billions of dollars per year.
A terrific proposal. It must be said VIPs of all stripes and most members of the flying public, fume over delays at air terminals but reluctantly accept it as an inconvenient truth. Except Newt. He’s got an alternative plan discussed much later on my blogsite.
Whoa!
That’s it? Twelve solutions of which seven propose tax cuts or tax incentives. This from the most prolific conservative thinker in the Republican ranks. Actually, Gingrich offers much more than simplistic solutions to Republicans who suffer from a power vacuum of great proportions and are desperately in search for someone to lead them out of the party of exile.
Is Gingrich, the former unceremoniously defrocked House Speaker, poised to make a comeback?
For this and an insight into politics’ most ingenious and lovable flake, we invite you to access the entire posting on http://remmersreport.blogspot.com
Cross posted on The Remmers Report
Jerry Remmers worked 26 years in the newspaper business. His last 23 years was with the Evening Tribune in San Diego where assignments included reporter, assistant city editor, county and politics editor.