The rich get richer and the poor get taxed

Newt Gingrich is now the national frontrunner for the Republican nomination, and is polling well in the early states of Iowa and South Carolina. Two factors in Gingrich's economic plan to help the economic are a sharp reduce in corporate tax rates, while reforming entitlement programs, the Food and Drug Administration and the Environmental Protection Agency, and balance the budget by instituting an optional flat tax on individuals.

Gingrich wants to reduce the corporate tax rate from 35% to 12.5% -- a move that would take the corporate tax rate from one of the highest in the industrialized world to one of the lowest. He argues that a drop of that magnitude would make the U.S. a much more attractive place to do business. But at the same time, the drastic reduction would leave an enormous hole in revenue collected by the government, making a balanced budget all the more difficult. Gingrich also wants to add to the current tax code by putting an optional 15% flat tax on income in place. Taxpayers would be able to choose whether to pay the flat tax, or file under the existing tax code. The new flat tax would boost growth, Gingrich says, while saving hundreds of billions in compliance costs.
http://money.cnn.com/2011/11/29/news/economy/newt_gingrich_plan/index.htm?iid=SF_E_River