Giuliani Tax Cut Plan – "exactly the kind of plan economic conservatives should embrace"

Club for Growth President Pat Toomey characterized the Giuliani tax cut plan, unveiled Wednesday in Florida, as “exactly the kind of plan economic conservatives should embrace.”

The Giuliani tax cut plan would extend the 2001 and 2003 tax cuts immediately; eliminate the Death Tax completely; lower the capital gains and dividends tax rate to 10% and index capital gains to inflation; lower the corporate tax rate from 35% to 25%; and permanently index the Alternative Minimum Tax to inflation with a plan for eventual elimination.

The Giuliani tax cut plan also contains a particularly bold pro-growth tax simplification strategy that would give taxpayers the option of opting into a simple tax plan in which their taxes could be done on one page. Instead of the current tax behemoth, the voluntary tax plan would constitute across the board cuts in marginal tax rates by proposing three simple rates of 10%, 15%, and 30%.

Americans for Tax Reform called the plan’s tax cut “the largest in history” and “the most pro-growth tax cut of any GOP presidential candidate”:

This multi-trillion dollar tax cut would easily exceed the level of the Reagan or Bush tax cuts. This package is the most pro-growth tax cut of any GOP presidential candidate…
“This tax cut—the largest in history—would represent a monumental leap forward for the American taxpayer and the U.S. economy,” said ATR President Grover Norquist. “In particular, cutting the corporate income tax and the capital gains tax is just what is needed to keep us from falling into recession.”

This move makes Giuliani the unmatched conservative choice for the GOP nomination.

Mike Huckabee’s alignment with the Fair Tax is the only ostensibly conservative plank in his personal platform. Given his atrocious record on taxes in Arkansas and his characterization of the Fair Tax as “progressive” on a Tonight Show appearance, it’s hard to believe that even in this he’s truly committed to conservative principles.

Ron Paul is the most conservative of the candidates, but unfortunately his commitment to ideal principles has stood in the way of achieving the best possible gains especially in the area of free trade. His position that we should prevent terrorism by behaving better on the world stage is not an excuse for terrorism, but is actually the same as the Bush administration’s principled prescription for preventing a new generation of terrorists. Unfortunately his dogged absolute adherence to the Founders’ warnings against entangling alliances led him to the idea of withdrawal when the Bush administration’s plan of engagement to promote democracy and liberty is proving itself by the day. Still, as the most conservative, pro-life candidate, Paul deserves the vote of those Republicans who can’t vote for Giuliani because of his stance on abortion.

Romney has flip flopped on so many issues of concern to conservatives that it’s hard to remember them all and not merely in his role as Governor. It’s easy to imagine President Romney signing the tax cut before he vetoed it.

McCain opposed the Bush tax cuts, pushed through the worst violation of the Constitution in recent years and supported the second worst. He does deserve credit for supporting the new strategy in Iraq, but only if he’s willing to accept blame for joining the chorus of dissent that undermined the original strategy and led Donald Rumsfeld to abandon the fight. I hope he’s not elected, as the things I expect to be writing about him may make him rethink his stance on torture.

Fred and Duncan…we hardly knew ya…

[tags]Giuliani tax plan,tax cuts[/tags]

Full disclosure: I’m a member of the Club for Growth and contributed to the Club, the Giuliani campaign and the Paul campaign.

Club for Growth PAC Praises Giuliani’s Bold Tax Cut Plan

Washington – Club for Growth President Pat Toomey praised Mayor Rudy Giuliani’s new comprehensive tax reform and reduction plan, unveiled today in Florida, calling it “a bold and innovative proposal that will reward hard work, encourage investment, and promote economic growth for Americans across the economic spectrum.”

The Giuliani tax cut plan would extend the 2001 and 2003 tax cuts immediately; eliminate the Death Tax completely; lower the capital gains and dividends tax rate to 10% and index capital gains to inflation; lower the corporate tax rate from 35% to 25%; and permanently index the Alternative Minimum Tax to inflation with a plan for eventual elimination.

The Giuliani tax cut plan also contains a particularly bold pro-growth tax simplification strategy that would give taxpayers the option of opting into a simple tax plan in which their taxes could be done on one page. Instead of the current tax behemoth, the voluntary tax plan would constitute across the board cuts in marginal tax rates by proposing three simple rates of 10%, 15%, and 30%.

“Giuliani’s tax cut plan will encourage capital formation, and capital is the key driver of productivity, higher wages, and a better standard of living for all Americans,” Mr. Toomey continued. “He does that by not only lowering the capital gains and dividends rates, but also by indexing capital gains to inflation. Also, the Mayor’s plan dramatically lowers marginal tax rates at the personal and corporate level, which will encourage a significant burst of economic activity and growth.”

“The current U.S. tax code is a monstrosity of inefficiency and deterrence, with some of the highest corporate tax rates in the developed world and a tax code that totals more than 66,000 pages. Mayor Giuliani’s tax cut proposal today would dramatically move the American tax code and economy in the right direction. This is exactly the kind of plan economic conservatives should embrace.”

Americans For Tax Reform: Rudy Giuliani Tax Cut Plan: The Biggest In History And Most Pro-Growth In GOP Presidential Field

Plan would cut the capital gains tax, slash the corporate income tax, and create a simplified alternate tax system for families and small businesses

January 9, 2008
Press Release

WASHINGTON, DC – Former New York Mayor Rudy Giuliani today released a pro-growth tax cut package. This multi-trillion dollar tax cut would easily exceed the level of the Reagan or Bush tax cuts. This package is the most pro-growth tax cut of any GOP presidential candidate.

Giuliani’s tax plan makes all the Bush tax cuts permanent, including full repeal of the death tax. It indexes the alternative minimum tax (AMT) to inflation, and eventually repeals it. It reduces the corporate income tax from today’s 35 percent, the second-highest in the developed world, to 25 percent, more in line with our European competitors. It slashes the capital gains and qualified dividends tax rate from 15 percent to 10 percent (and indexes capital assets to inflation), which will boost the value of every American’s 401(k) and IRA. It replaces the current hodgepodge of dozens of tax-advantaged savings accounts with a simplified system of Retirement Savings Accounts and Lifetime Savings Accounts. It gives all Americans the ability to purchase health insurance pre-tax through a health care standard deduction.

“This tax cut—the largest in history—would represent a monumental leap forward for the American taxpayer and the U.S. economy,” said ATR President Grover Norquist. “In particular, cutting the corporate income tax and the capital gains tax is just what is needed to keep us from falling into recession.”

In addition, the Giuliani tax cut plan creates an alternate “Fair And Simple Tax (FAST)” system that American families and small businesses could choose to go into each year, with a three-bracket structure, a 30 percent top rate, and only the most popular deductions in place.

“Most Americans, when given the choice to go into this simplified system, will flock toward it and never switch back,” continued Norquist. “Hong Kong has had an alternate tax system for years and the vast majority of residents use it happily.”

In addition to his tax cut proposal, Giuliani has committed in writing to the American people to oppose and veto all tax increases. This pledge has also been adopted by every other Republican presidential candidate except John McCain and Fred Thompson. It hasn’t been adopted by any Democrat presidential hopeful.

Rudy Giuliani Outlines Plan to Cut Taxes and Reform the Tax Code

Mayor Rudy Giuliani outlined his plan to cut taxes and reform the tax code in a speech today in Melbourne, Florida. The Mayor’s tax cut plan – the most aggressive of anyone running for President – aims to spark the American economy, lower the tax burden on Americans and help businesses create jobs, while eliminating wasteful government spending in Washington.

Mayor Giuliani plans to simplify the tax code by introducing the Fair and Simple Tax (FAST) form. The FAST form gives American taxpayers the option of filling out their taxes on a single page, while cutting the current six brackets in half and preserving the major deductions that Americans depend upon – mortgage interest, charity, state & local taxes, the child tax credit, the personal exemption and the new health care exclusion.

Rudy’s plan also cuts the corporate tax rate from 35% to 25% to keep America competitive in the global economy. In addition, the Mayor proposes giving the death tax the death penalty, cutting the capital gains tax from 15% to 10% and indexing the Alternative Minimum Tax for inflation and eventually eliminating it.

In addition, the Mayor’s proposal eliminates the double-taxation of personal saving accounts, reinstates the Research and Development Tax Credit and makes the current Bush tax cuts permanent.

“At a time when many Americans are worried about the economy, now is the right time to cut taxes so we can put America back on a pro-growth path towards future prosperity,” said Mayor Giuliani. “Fiscal Conservative Republicans remember what Ronald Reagan taught us: when you cut taxes you liberate the potential of the American people…and you unlock the genius of our free market economy.”

As Chief Executive of America’s largest city, Mayor Giuliani proposed 64 tax cuts and succeeded 23 times – working with a Democratic City Council and a Democratic State Assembly. Rudy reduced New Yorkers’ tax burden by 19% – down to its lowest level in three decades – by the end of his eight years in office. Mayor Giuliani delivered more tax relief to his constituents than all of the other Republican candidates combined.

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