The Gingrich plan would reduce federal tax revenues dramatically. TPC estimates that on a static basis, the Gingrich 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. Relative to a current policy baseline, the reduction in liability would be roughly $850 billion in calendar year 2015. If taxpayers were required to file under the flat tax option (that is, they could not opt to remain under current tax law), revenues in 2015 would fall by about $1.25 trillion relative to a current law baseline and by about $830 billion relative to a current policy baseline.
There doesn’t appear to be much of a strategy behind how such a giant estimated reduction in revenue would succeed without bankrupting the government in its current form, but I suppose those are minor details to be worked out further down the road. I wonder how long until a candidate proposes a serious (read: realistic) plan for reform. Until then, we can poke at the inadequate proposals before us.