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Newt Gingrich warned Thursday that President Obama and congressional Democrats appear to be on the verge of repeating the same mistakes that aggravated the Great Depression, adding that letting the Bush tax cuts expire would prove "very dangerous" for the nation's economy.
Gingrich sounded the alarm that raising taxes could cause serious damage to the economic recovery. "If we have large tax increases in January," "this economy will sink deeper into recession. There will be higher unemployment. The recovery will be longer.
"This was exactly the mistake made in 1937 and 1938, and it created a second mini-Depression. I think it's very dangerous, and I think the simple battle cry ought to be no tax increase in 2011, period. Keep current tax law exactly as it is through 2011," That legislation endorsed by AmericanSolutions calls for:
A 50 percent cut in the Social Security and Medicare tax, both for the employer and the employee.
Zero capital gains tax, which is the rate in China.
A 12.5 percent corporate tax rate, which is the rate in Ireland.
A 100% write-off annually for small businesses to buy new equipment, so workers have the best, most modern equipment.
Permanent elimination of the estate or "death" tax "so people have an incentive to work and save their entire lifetime.
"We think those five tax changes would dramatically accelerate economic growth and help the economy," Gingrich tells Newsmax.
For most of the interview Gingrich focused on national security, Islamic fundamentalism, and the recent publication of sensitive intelligence about the war in Afghanistan.
