Newt Gingrich's Tax Plan

At the Taxprofblog, I found that Newt Gingrich has a new tax plan. I don't think it would work, as interesting as it sounds:

Newt Gingrich's American Solutions For Winning the Future has launched a petition drive for Jobs Here. Jobs Now. Jobs First with four tax planks:

1. Cut the Payroll Tax in Half for 2 Years. Every single working American pays the payroll tax. In this economy, many people may not get a pay raise, but this would immediately give every working American a take home pay raise. This would also immediately increase the liquidity of every small business, because there would be more money available to put back into the business and create more jobs. So that Social Security and Medicare funds are not affected, we would pay for this proposal by redirecting all the TARP and $787 billion stimulus money that has been allocated but not yet spent.
2. Abolish Taxes on Capital Gains. If we want to compete with China and have the most productive factories in the world, the best jobs, and the highest take home pay, we should match China's capital gains rate of zero. This would dramatically increase investment in America.
3. Reduce the Corporate Tax Rate. When you combine state and federal taxes, America has the highest corporate tax structure in the world. We believe that by matching the Irish corporate tax rate of 12.5%, America would be the most desirable economy in the world to open a factory, create a new job, and develop a new product.
4. Abolish the Death Tax. If we want to be pro-work, pro-savings, and pro-family, we should not punish, but instead reward people who have worked, saved and created wealth all their life.

As I said, I don't think there is any way in hell it would pass. But it's a neat thought.

My own idea would be to establish a flat tax wherein EVERYONE would pay the same rate...the only two exceptions would be those who are under the poverty line wouldn't pay, or would pay a much reduced. The other would be 50 cents on the dollar reduction for charitable contributions. That's federal taxes. State income taxes would be capped at 7.5%. This would force EVERYONE with the means to pay, would pay.