Romney pitches tax plan details ‘favoring rich’
Washington: Republican presidential candidate Mitt Romney has told Ohio voters that they cannot afford four more years of President Barack Obama’s economic policies.
He argued that while the Democratic president would raise taxes on middle-income households, he would lower them.
According to CBS News however, Romney’s proposal as he described it, eliminating tax on interest, dividends, and capital gains, would largely help those living on investment income, which does not include many people in the middle class.
At a rally in Ohio, Romney said that Obama would raise taxes on middle-income families by 4,000 dollars, a claim that has been debunked by several fact-checking websites.
Romney has promised to reduce the burden of those earning 200,000 dollars a year or less.
“I have a plan to cut taxes for middle-income tax payers,” Romney said, adding: “My plan does this. There’ll be no tax on interest, dividends, or capital gains for middle-income families in America”.
According to the report, the wealthy are the major beneficiaries of low taxes on capital gains, dividends, and interest; many middle income Americans do not have investment income.
Romney’s tax plan also includes reducing income tax rates by 20 percent across-the-board, a figure which could significantly reduce the tax burden of middle-income Americans.
According to the report, some experts, however, are skeptical that Romney will be able to keep tax rates low for middle-income taxpayers without getting rid of loopholes like the mortgage tax deduction, a popular tax break for people in the middle class who own their own homes.
Romney has consistently said he will not raise taxes on any Americans, but has declined to specify which loopholes and deductions he would get rid of in order to make his tax plan revenue neutral, the report added.