Fact check: Gingrich's tax plan

[sinkingfeeling]

http://www.usatoday.com/news/politics/story/2012-01-18/fact-check-gingrich-romney-taxes/52647894/1

Newt Gingrich joked that he ought to rename his proposed 15% flat tax the "Mitt Romney Flat Tax," so "all Americans would pay the rate Mitt Romney paid." Actually, not all Americans. Under Gingrich's tax plan, Romney would likely pay closer to zero percent.

Under the Gingrich tax plan, individuals could continue under the current tax policy or elect to pay a 15% flat tax. Gingrich would keep deductions on charitable giving and home ownership, and create a new personal deduction of $12,000 for everyone.

But here's the part that would greatly enhance Romney's bottom line: Under Gingrich's plan, capital gains, dividends and interest income would not be taxable. Based on Romney's financial disclosure formand what Romney said this week, that's most of his income. In other words, his effective tax rate might be closer to zero. It wouldn't actually be zero, though, because he'd still have to pay 15% on the ("not very much&quot $374,000 he made in speaker fees.

"It's odd for Gingrich to make this populist argument given the rate Romney would be paying [under Gingrich's tax plan]" Toder said. "He's nicer to Mitt than Mitt is."