Because only Newt and Callista Gingrich’s personal return was disclosed, we only know the amount in profit, after the personal holding company’s “expenses,” that flowed to them personally; what we don’t know is what kinds of expenses Gingrich Holdings paid on Newt’s and Callista’s behalf before that profit was calculated. What amounts for meals or luxury hotels, for example, were picked up by the personal holding company and therefore became a pre-tax benefit not subject to income tax? What about cars, or even clothing, or rent on an apartment somewhere? Suppose, for example, that that $3.1 million in income was net of, say, $2 million in these kinds of expenses? Then, the tax rate would arguably have been 19 percent, not 32 percent.
Nor, of course, do we know who paid Gingrich Holdings for what.
So, assuming Gingrich stays in the race for a while, who’s going to be the first reporter to ask for the Gingrich Holdings tax return?