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Gingrich plan would triple national debt by 2024

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posted on Dec, 14 2011 @ 05:54 PM
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Any Newt supporters here? Try defending this?

ANALYSIS: Gingrich’s Tax Plan Would Cause Perpetual Trillion Dollar Deficits, Triple The Debt By 2024

The Gingrich plan would reduce federal revenues by $1.28 trillion below CBO’s baseline, according to the nonpartisan Tax Policy Center, resulting in revenues of about 13.2 percent of GDP. That is an absurdly low level. Unsurprisingly, therefore Gingrich’s plan would pile up debt shockingly fast. Ultimately, Gingrich’s plan would:

– Result in perpetual trillion-dollar deficits: The budget deficit is expected to be 6.2 percent of GDP in the current fiscal year, but projected to decline in the coming years. With Gingrich’s tax plan in place, however, deficits would be even higher in perpetuity. In the best year under his plan, fiscal year 2015, the deficit would be $1.2 trillion, or 6.6 percent of GDP. Annual deficits would continue to mount, reaching $2 trillion in just over a decade. Again, this assumes that drastic spending cuts also take place.

– Explode the debt to historic levels: Under the Gingrich plan, the publicly-held debt would double by 2019, and triple by 2024. By the end of a second Gingrich term as president, the debt would reach $25 trillion, or more than 100 percent of GDP. The United States will have added about $12.5 trillion in debt during that period, with no end in sight.

– Commit the United States to trillion dollar interest payments on the debt: By enacting a tax plan with grossly inadequate revenues, the U.S. would be committing to pay ever-increasing sums of money to creditors like China. Under Gingrich’s plan, by 2021 the United States would be paying more than $1 trillion every year just in interest on the debt. Interest on the debt would represent nearly a quarter of all government spending.

And the interest on the debt is OPTIMISTIC... because they think interest on the bonds are gonna stay low (which it won't).
edit on 14-12-2011 by Vitchilo because: (no reason given)




posted on Dec, 14 2011 @ 06:10 PM
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There are two sides to this argument. The first is taxing and the second is spending. We would have to look at his spending plan to get a better idea of how things will pan out.



posted on Dec, 14 2011 @ 06:26 PM
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reply to post by Vitchilo
 


Yeah it is time for "GreenGrinch" and his croneys to retire. They are not only a ball and chain on
The People of The United States of America, but a stain on our Standard as well.

Ho Ho Ho, fitting name for him in this Holiday Season, No?

The Grinches who try to steal the Middle Classes tax credits, their Holiday Dinner, and FUTURE
as well.

Good Riddance to these Scoundrels.
S&F



 
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