Mitt Romney told voters in Westerville, Ohio on Wednesday not to expect a “huge cut in taxes” from his economic proposal, noting that he is “also gonna get rid of deductions and exemptions.” The message is at odds with the GOP nominee’s promises to cut taxes for the middle class and small businesses, while maintaining the current tax burden on the rich.
ROMNEY: Number 5, I’m going to champion small business. Small business, where jobs come from. And let me tell you how to do that. One, as Sen. Portman said, we’ve got to reform our tax system. Look, small businesses typically pay tax at the individual tax rate. And so, our individual income taxes are ones I want to reform, make them simpler. I want to bring the rates down. By the way, don’t be expecting a huge cut in taxes, because I’m also going to lower deductions and exemptions. But by bringing rates down, we’ll be able to let small businesses keep more of their money, so they can hire more people.
Romney has been pledging that he will cut taxes for all Americans by 20 percent, while also instituting tax reform that will not add to the nation’s deficit. But numerous analyses of the plan — including a recent study by the nonpartisan Tax Policy Center — found that there are not enough loopholes in the tax code to finance the loss in revenue that would result from Romney’s massive cuts by only targeting deductions for the rich, meaning that middle class Americans will experience a net tax increase.