Newt Gets Dynamic
Overlooked
because of the buzz about Republican presidential candidate Mitt
Romney's new 20% income tax cut plan was the latest splash out of rival
Newt Gingrich's economic policy shop.
Mr.
Gingrich has announced he will use dynamic, not static, scoring to
demonstrate his plan's potential to jumpstart growth. The former House
speaker arguably has the boldest tax plan, which includes a 15% optional
flat tax. He would also allow young workers to take a share of their
payroll tax dollars and divert the funds into a personal IRA.
These
plans have come under attack from liberal groups like the Center on
Budget and Policy Priorities and even from some of Mr. Gingrich's fellow
Republicans. On Thursday Mr. Gingrich showed that using this dynamic
scoring -- which takes into account the extra economic steroid effect of
the plan -- there would be six million new jobs in two years.
The
new economic numbers, from former Reagan economists Peter Ferrara and
Gary Robbins, also show that the Gingrich policies would balance the
budget within the first term of his presidency.
In
an interview, Mr. Gingrich said that "we make the most serious cuts in
entitlements of any of the candidates." He's embraced many of the Paul
Ryan entitlement reforms and calls for a sweeping devolution of the
welfare programs to the states. Mr. Gingrich stressed "the crucial role
that growth plays in balancing the budget. We figured that out when I
was speaker."
His plan calls for the
"elimination of the capital gains tax and death tax, deregulation and
sound monetary policy," as well as for rolling back the "regulatory
barriers to energy production [and] unleashing the private sector to
maximize all forms of American energy production."
There's
no doubt Newt is the real supply-sider in this race," said Mr. Ferrara.
"And now we have evidence the numbers actually add up." Exciting
stuff, but whether that's enough to jump start a candidate who was
briefly a front-runner but has slid into the teens in recent polling is
yet to be seen.
-- Stephen Moore
THE WALL STREET JOURNAL POLITICAL DIARY ONLINE
Friday, 24 February 12
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