NCPA - National Center for Policy Analysis

ROMNEY PLAN WOULD ELIMINATE SOME TAXES

September 7, 2007

Republican presidential candidate Mitt Romney is filling in the blanks in his proposal to eliminate taxes on interest and dividends for families earning less than $200,000 a year, say observers.

According to Romney:

  • The plan would benefit 95 percent of American families, including 56 million that earned interest in 2005.
  • It will also help the 28 million that earned dividends and 23 million with capital gains from real estate, stocks or bonds.
  • The proposal would cost $32 billion, to be paid for through economic growth, and by holding non-defense discretionary spending to inflation minus 1 percentage point.

Romney's plan is in stark contrast to one proposed by Democratic candidate John Edwards, who has said he would raise capital gains rates and tax dividends at 39.6 percent, the rate during the Clinton administration.

Overall, Romney has made economic issues a major part of his campaign so far, say observers.  Earlier this year, he proposed restoring the three-fifths majority requirement for Congress to raise taxes, and he routinely pledges to fight new taxes.

Source: Philip Elliot, "Romney Plan Would Eliminate Some Taxes," Associated Press, September 7, 2007.

 

Browse more articles on Tax and Spending Issues