Gingrich said that his tax changes would “liberate capital to create new jobs” and “liberate taxpayers from the IRS code.” But he also underscored the simplicity of his plan, playing to voters who support Cain’s proposal — and might balk at Mitt Romney’s comprehensive 59-point economic plan.
“This concept of an optional flat tax would give American taxpayers an opportunity to choose simplicity versus complexity and a single rate over a lot of deductions," Gingrich wrote.
Gingrich said, in an acknowledgment that his proposal would likely bring in far less revenue than the current tax code, because wealthier Americans would pay far less, that he believed his proposal would pay for itself by stimulating the economy. The former Speaker of the House posited that if his tax code were enacted alongside deep cuts to the federal budget, the economy would rebound to 1990s-style growth.
“The result of a record number of Americans working resulted in a dramatic turnaround in the fiscal and debt outlook of the United States," Gingrich said.