Romney offers some detail on tax plan

The GOP presidential candidate suggests a possible $17,000 deduction ceiling.

By MSNMoney partner Oct 3, 2012 11:42AM

By Bruce Kennedy, MSN Money


Just hours before his first debate with President Barack Obama, Republican  presidential candidate Mitt Romney is suggesting he might consider reducing income tax deductions to help pay for his tax reform plan.


"What we're going to do is bring down the rates for everybody, and at the same time we're going to limit deductions and credits and so forth for people at the high end," the former Massachusetts governor said during an interview with a TV station in Denver, where the debate will be held. "Very high-income people are going to have those deductions and credits come down so we can pay for bringing down the rates."


When pressed for specifics, Romney said that, as an option, "you could say everybody's going to get up to a $17,000 deduction. And you could use your charitable deduction, your home mortgage deduction or others -- health care deduction -- and you can fill that bucket, if you will, that $17,000 bucket, that way. And higher-income people might have a lower number."


Romney has proposed a permanent, across-the-board 20% cut in individual tax rates as a way to encourage entrepreneurship, savings and investment and revive the U.S. economy.


The Obama campaign, meanwhile, has criticized Romney's plan, saying it would increase taxes on Social  Security benefits and slash other deductions that middle-class Americans rely on, as a way to pay for Romney's planned $5 trillion in new tax cuts.

 

 

 

 

 

11Comments
Oct 3, 2012 3:34PM
avatar
Is the $17K the standard deduction? Do you have to itemize to take the mortgage interest and charitable contributions?  Can you now do both? You can put it all into your $17K bucket?  Does that mean that $17K is the max?  Does this include the personal and dependent exemptions, child tax credits and child care credits, etc?  If businesses are holding back because of uncertainty, this certainly didn't help. I was a tax preparer for several years, and these are not specifics, what he threw out was a bunch of definite possible maybes! , but the debate is coming up tonite, so maybe a lot of naive people will think they are specifics.  I would rather really prefer to see the details on how he will create 12 million new jobs in 4 years (and I really wish he could do that, but for some reason I'm having trouble buying into it, I wonder why?).
Oct 3, 2012 5:02PM
avatar
  According to economists you'd have to eliminate all deductions for those making over 250K a year to cover just half of his tax cut assuming you don't cut capital gains and Romney says he won't so where will the other half come from? Funny he's refused for over a year of campaigning to explain anything and the day before the debate he offers partial information. If taking all deductions leaves 50% unfunded what will a $17,000 cap leave. I think he did it right before the deabtes so people wouldn't have the time to study it enough to question the math.
Oct 3, 2012 3:40PM
avatar
What garbage (as usual). Never think a tax CROOK is going to come up with anything better than a CROOKED tax proposal.

Hey flip flopper... how about ONE tax rate for all and ONE interest rate on ALL credit? It puts all your lowlife pariah friends out of work but it fixes the country.

Romney Ryan... the nitwit ticket.

Oct 3, 2012 3:45PM
avatar
"Romney has proposed a in individual tax rates as a way to encourage entrepreneurship, savings and investment and revive the U.S. economy."

Dubya's Tax Cuts for the rich caused 750,000 job LOSSES for months before Obama took over and scam shops like Bain took down entrepreneurial businesses, terminated the personnel and sold the assets and job positions to foreign interests. Who "saves" when the passbook rate is .25%? If THIS is a plan... then the word PLAN should be banished from the dictionary. What CROCK.
Oct 4, 2012 1:06PM
avatar
VL, Bain took over mismanaged companies on the verge of collapse not healthy growing ones. He was just smarter than you libtards to find a way to make money either by managing them better or selling the assets. Oblamo has never had real job and is just as clueless on the economy as the rest of you liberals. Have you dems ever come up with a solution that didn't involve taxing the  responsible and successful to spend on the lazy, unfortunate, drug dependent, uneducated, and irresponsible? The top 10% of taxpayers pay 77% of the total income tax. Did you see your clueless moron last night? Im not sure he can complete a sentence without his telepromptor.
Oct 5, 2012 11:00AM
avatar

Looking at Romney's numbers, I applied them to my in-laws, both retired and in their 80s (I do their taxes for them).  They have about $40K/yr income (SS & some annuity investments).  Currently for 2012, they would get a standard deduction of 11,900, plus 2,300 for being over age 65.  Their 2 personal exemptions would be 7,600.   So, their total deductions would be 21,800, and their tax liability would be 1,860 (if Romney considers them in his 47%, he missed the boat, they do pay taxes).  Under Romney's plan, their total deductions are capped at $17K, so they lose $4,800 in deductions, which  drives their taxable income up by the same amount from 18,200 to 23,000, and their tax liability goes up to 2,064, an increase of $204.  Calculations from 2012 tax table, with Romneys rate adjustment:

 

         17,400 X   8% (dropped from 10%)      =  1,392

           5,600 X 12% (dropped from 15%)      =     672

                                                                           -------

                                          Total Tax Liability  =  2,064

         

 

So Romney happily tells us in the debate, with his plastic TV preacher smile, that his tax plan won't raise taxes on the Middle Class, but rather will reduce them.  Well, this doesn't seem to be the case for my in-laws, now does it?  Now an increase of $204 isn't a backbreaking amount, but when compared to the whopping big savings many wealthy will get, something doesn't add up.   It seems as if Romney doesn't really think his plans through, simply doesn't understand the numbers, or is just throwing stuff out to make it to like he knows what he is talking about, but then again, this is the Romney we all know and love.

 

Also, he proposes dropping the top rates for the wealthiest by 10 percentage points (35% to 25%), but dropping the Middle Class rate by only 5 percentage points (25% to 20%).  Who gets the better deal, especially when you consider that the top rate applies to a higher level of income, resulting in a much greater dollar savings AND because we have a graduated system, the wealthy will have part of their income getting the Middle Class savings as well as their own.  Spin it anyway you like, but it's pretty obvious whose butts Romney is kissing.

Oct 4, 2012 1:18PM
avatar
MSNBC, let me guess, this is the extent of your Obama debate damage control.  You lefties were caught off guard, better regroup quickly.  I'm sure you will get your democrat propaganda back on track.  The bulk of americans are clueless innumerate lemmings, putty in your hands.
Oct 4, 2012 10:16PM
avatar
We watch the whole debate Obama vs Rommey and we are so pissed that the whole family is eating fire. There’s this maniac of Romney, pounding minute, after minute on Obama, and Obama acting like he was in another world. But ask yourself, if you were ask to debate a liar, a weekly mind charger, a person that if in front of your face tries to sell you a bunch of goof balls, will you bother to debate him? We are hard core Democrats, we have a good education, and we are not in political business, but if Romney delivered a paradox of lies to the sixty millions American people watching the debate, and fails to honestly deliver a complete assessment of the specifics of the hogwash plans he wants to do to do if he takes charge of the White house, each specific we want to know he did not delivered, and right on the spot changes his mind, and vocalizes his political plans completely opposite of what he been preaching many months before, and with malice keeps a perpetual verbal assault against you (Obama), with intent to keep his lies alive with the sole purpose of demoralizing us ( Obama), we will turn around and use the same size stick to defend ourselves. We do not believe what we saw; we think that perhaps Obama was told to play cool, and to let the monster of Romney talk to expose all his hidden nasty things he proposed to do to all of us if he gets to get the White House, but our advice to Mr. Obama, is “Next time you fight!” You make this guy eat dust, exposed completely all his lies, and distorted political wishes he wants to do us if by a lousy chance he becomes president. Stop playing it cool, you look like you have no blood, wake-up Mr. President and fight for all of the democrats that given you support, and the best in political effort! We know next time you will stop being nice, and hit back!
Oct 4, 2012 12:58PM
avatar
VL , how do tax cuts cause job losses. You are just another libtard, part of the 47% that eat off the plate of the taxpayers.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

VIDEO ON MSN MONEY

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note with small caps displaying relative strength. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.4%) registered modest gains, while the Dow Jones Industrial Average (-0.2%) and S&P 500 (+0.01%) underperformed.

Despite the mixed finish, the key indices traded higher across the board at the start of the session after the advance reading of second quarter GDP surpassed estimates (4.0% versus Briefing.com ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.