Republican Mitt Romney wanted big tax cuts since the start of his presidential campaign. But at present, he seemed to have changed his mind and warned middle class families not to get their hopes too high. During the debate last Wednesday, he said that he wants to help the middle class because they have been hurt the most. This is why he pledged to focus on a tax cut on middle income Americans.
Romney’s tax plan during the Republican primaries was to cut 20 percent in tax rates across the board. He said this was needed in order to get the job done. He also wanted to eliminate the tax on savings for middle-income Americans. Those who make less than $200,000 a year would not be required to pay taxes on dividends, interest, and capital gains.
Now that he is the official Republican presidential candidate, he still wants to lower the tax rates. He wants the tax changes to be revenue neutral. He said that people should not expect taxes to have a huge cut because he is going to lower exemptions and deductions.
This meant that the tax rate might be lower but the taxable income could be higher. He said this during the presidential debate with President Obama Wednesday. He explained that he would not raise taxes on the middle-income families but he didn’t elaborate the details of his tax plan. Romney said that he would work with Congress and immediately changed the topic about lowering the tax rate for small businesses.
There is a month before the election and Romney wants to show that his tax plan would mean more jobs, help the middle class, and keep the same amount of money flowing into the government. Analysts believe that Romney has a lot of variables he can adjust.