Political Correction

Newt Gingrich's Tax Giveaway To Millionaires Is As Large As Entire Medicare Budget

December 13, 2011 2:19 pm ET - by Jamison Foser

The Tax Policy Center estimates that Newt Gingrich's tax plan would "lower federal tax liability by $1.28 trillion in calendar year 2015 compared with current law, roughly a 35 percent cut in total projected revenue." A whopping 35.4 percent of the total tax cuts would go to people earning at least $1 million per year — that's a $453 billion giveaway to millionaires and billionaires like Gingrich.

So how much is $453 billion? 

It's more than twice as much as the $205 billion deficit the Congressional Budget Office projects for 2015.

It's $1 billion more than the entire 2011 Medicare budget, which provides health care for 47 million people.

It's enough to pay off nearly half of all outstanding student loan debt.

It's enough to give each of the roughly 10 million "working poor" — those who spend at least 27 weeks a year in the labor force, but whose incomes fall at or below the poverty level — $45,300 each.

It's enough to give the nation's three million graduating high school seniors $100,000 each to pay for college or job training and to give $15,000 to each of the 10 million working poor to lift them out of poverty.

If that all sounds shockingly redistributive, that's the point: Gingrich's tax plan takes $453 billion that is currently scheduled to pay for things like food stamps and bridges and schools, and gives it to people who make at least $1 million a year. That's shockingly redistributive. Except that instead of helping people pay for food and college and health care and to rise out of poverty, Gingrich's redistribution gives nearly half a trillion dollars in a single year to millionaires and billionaires.

Copyright © 2010 Media Matters Action Network. All rights reserved.