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Mitt Romney said Wednesday that his tax plan would maintain or possibly even raise the effective tax rate for the wealthiest of Americans.
Speaking at a pre-debate rally this morning in Arizona, Romney previewed the release of his new tax and economics plan, which he'll detail later this week in a major speech at Detroit's Ford Field. The sneak peek came the same day the Obama administration released its corporate tax reform proposal.
Among the elements of the plan is an across-the-board 20 percent cut in marginal tax rates, which would lower the top rate to 28 percent -- the same maximum rate during President Reagan's time in office.
But in Arizona, Romney suggested his policy might result in a tax hike for the wealthiest of Americans.
"I want to make sure that you understand for middle-income families, the deductibility of home mortgage interest and charitable contributions – those things will continue, but for high-income folks, we’re going to cut back on that, so that we make sure the top 1 percent keeps paying the current share they’re paying or more," he said.
Romney explained that he favors limiting deductions and exemptions, particularly for the wealthiest of Americans, a notion backed up by economic advisers in a subsequent conference call detailing the plan. Advisers to Romney said his tax plan was designed to be revenue-neutral.
The Tax Policy Center estimated earlier this month that the top 1 percent pays an effective tax rate of 20,3 percent on individual income (as a percentage of cash income). That could mean an effective tax hike for the wealthiest, at least on individual income. (Other portions of the Romney plan, such as cuts to taxes on estates or investment-related income, could benefit the wealthy.)
The former Massachusetts governor's reveal on Wednesday comes a day after he said of his tax and spending plan that cutting spending would slow down economic growth. (Pro-growth tax reform is needed to balance out the effects of the cuts, Romney reasoned.)
Taxes were also an issue for Romney during the primary campaign in January, when rival presidential hopeful Newt Gingrich, the former House speaker, demanded that Romney release his most recent tax returns.
Romney did eventually release those returns, which showed that he paid an effective tax rate of around 14 percent, since most of his income came through investments, which is taxed at a lower rate.
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These republican candidates just don't get it. Pandering, flip flopping, not makeing an absolute commitment that he would actually raise taxes on the wealthy is still a problem.
If he did not think he was losing this race to Santorum and President Obama, he would not offer his empty promises knowing he is not committed to do anything. Just more oblivious rhetoric...
I am a Democrat. I say this for reference to what is comming. OK? OK
Romney should be your candidate if you are a republican. Santorum is a right wing dream or perhaps nightmare or perhaps douchebag. I as a Democrat would love to see Ricky be your candidate because he is un electable and living in a dream world. He is a racist white guy who seemingly doesn't dig women very much or for that matter dig anything besides wonderbread at least according to him. I would rather have the guy who throws the paper on my lawn at 4 am and never see be my next President.
I am going to stick with President Obama because I believe he has my back.
I was a government worker for 31 years. When I started out, we were not comparable with private employees pay scales by a long shot, but we had some good benefits. Future benefits, for the most part. We stuck it out, enduring the abuse that private workers are not exposed to, and now we are demonized. I say the hell with you critics. You chose your path now live with it. For most of you whiners, public or government service was beneath you thirty years ago. I had hopes for Romney but I have to say he is all wet when he proclaimed government workers should not be paid more than the people who pay taxes. What planet does he live on?? Government workers pay taxes too, and we pay for a portion of our own salaries!! You idiots. With that kind of logic, looks like we are doomed to another 4 years of O'Bummer.
Gee, the GOP is laying the foundation to rule with an iron hand. Woman's health not supported, the GOP is in the hand of the insurance company. Who will the next group will the GOP, for the insurance benefit, exclude.
For the economy to continue to grow as it has for the last few months it has to be profitable to the producer, The GOP is in the palm of the oil companies. The oil companies want to get rid of the EPA. All are members of OPEC. So OPEC raised the oil praises, and the USA oil companies shut down 2 refineries in Long Beach, supposedly for repairs & upgrades, great timming, right. A small fire at a refinery in Texas gave BP an excuse to produce less oil. This a manufactured gas shortage, to hold back our economy. Look bad for a re-election for Pres. Obama.
Wow in the photo they both look so presidential to bad the are both clueless as to what the MAJORITY really wants...oh ya that's right the majority really don't mean crap anymore!!! To bad this experiment called Democracy is a total failure.... thanks to LIES...GREED....and Corporate lobbyist!
I'm 65 and managed to live through the best of times....Leave it to Beaver and Ozzie and Harriet were Real back in the day! Good luck to you younger ones... just remember,,,love your neighbor and have Compassion! Live life and don't be a GREEDY BASTARD!
I like what you say about loving your neighbor. I grew up in Utah and lived around some good people. It was common to get with other boys from the church and go clean up the yards of our elderly neighbors. It was a good time in my life. I moved here to Salt lake and the more tme goes by, the less love I see. I never imagined people being so nasty and mean. How can we fix our nation's problems when people care so little about others. Watch what they do with the money. Here, among other things, they have drastically cut funds that aid handicapped people. They don't seem to care about the mentally handicapped people. If we can not help those who need us most, how can we ever expect to solve issues that include millions of people. But they do seem to worry about the rich! Whatever you do, don't pick on them! Can you imagine what we could all do if we actually took some time to care about our neighbor. Such a simple thing, and yet people don't get it. Thanks for mentioning it