January 19th, 2008
03:42 PM ET
10 years ago

Romney outlines economy plan

JACKSONVILLE, Florida (CNN) - Former Massachusetts Gov. Mitt Romney outlined details of his economic stimulus plan Saturday, saying “the time is now to get ahead of the tipping point.”

Romney’s plan would provide a tax cut of up to $400 to Americans earning less than $97,500 in the last year and would permanently reduce the tax bracket for those people from 10 percent to 7.5 percent. Americans over 65 still in the workforce would pay no payroll taxes.

Romney said his plan differs from the economic stimulus package proposed by President Bush Friday in that the amount of money going back to individual taxpayers is smaller than in the president’s plan, which offers some taxpayers a rebate of up to $1,600 per household. Romney said his plan would “do more on the corporate side trying to encourage the creation of jobs.”

Business owners would be able to expense all equipment for two years and would see a reduction in the corporate tax rate to 20 percent in two years.

Helping homeowners is also on the table. Romney’s plan involves participation by the Federal Housing Administration. The plan would lower the down payment a borrower must make and would push the FHA to expand the borrowing amount it’s able to guarantee.

“There are a lot of homeowners that have taken out home loans, credits on their homes,” Romney said. “If the value of the home continues to go down you will lose the ability of people to buy things and therefore grow the economy.”

Romney’s plan would cost a total of about $233.4 billion, he estimates, which he says would be paid for by the economic growth stimulated by the lowered corporate tax rate and reduced payroll taxes for workers over 65, for instance.

“If the nation goes into a recession, the cost of a recession to the government is a lot larger than the cost of what I’m talking about,” Romney told reporters aboard his campaign plane as he flew from Las Vegas, Nevada, to Jacksonville, Florida.

In outlining the broad details of his plan, Romney also called for reducing the tax rate on interest, capital gains and dividends down to zero for taxpayers earning under $200,000 – something he has advocated in recent days on the campaign trail.

In order for Romney’s plan to have its intended outcome, he says Congress must pass a bill no later than February 19, a month from today.

- CNN's Shirley Zilberstein

Filed under: Mitt Romney
soundoff (3 Responses)
  1. Marti, San Diego CA

    Now there's some common sense and some real meat from someone who has far more credibility when it comes to economic issues than all of the other candidates combines. Romney recognizes that simply handing out money to people is not enough. It's not enough because it doesn't create jobs and it does nothing for the housing market–the single biggest drain on the economy right now.

    Wake up people! America is long past due for a President that actually understands the economy, a President that understands what actually encourages job creation, a President that actually understands global economics and what this country must do to fight its way back to lead the world. Everybody else can talk and speculate and hope and repeat what they think they understood Greenspan to say, but Romney actually has credibility because that's what he spent his life doing.


    January 20, 2008 12:10 am at 12:10 am |
  2. Steven in Charleston, SC

    How many times are we going to make the same mistake? Time after time, the Republicans push for cutting taxes and promise that the "increased productivity" will miraculously pay for the cost of the cuts. And EACH AND EVERY TIME their theory proves to be wrong, and our nation falls deeper into debt.

    How much longer are we going to continue leveraging our children's future?

    How much longer are we going to continue granting economic welfare to the richest among us - many of whom have either inherited their wealth or made it by exploiting immigrants, shipping our jobs overseas, or gouging hard-working Americans at the pump?

    How about instead of digging the deficit hole deeper, we simply attempt to enforce some fiscal discipline?

    January 20, 2008 12:34 am at 12:34 am |
  3. mark wilkes barre pa

    How long are we going to say that corporate america's wealth , Old money mentality, exploiting the immigrant, shipping our jobs overseas, our gas prices sky-rocketing is soley a REPUBLICAN issue or problem. When will folks understand that the wealthy are evenly split between party affiliation. That some of the wealthiest people in America today ARE democrats. How long are democrats going to pretend that there are no other factors to the story than republican tax cuts for the wealthy. Our current presidents, spend like a drunken sailor's Fiscal disipline had nothing to do with this ? Our millitary efforts on two fronts has nothing to do with this, This is Americas problem ,,, Theres no Blame needed to be pointed at one party . What is needed is a solution. Hard work, endless hours of co-operation in congress and party lines, WE the voters demanding this co-operation by our leaders, Not finger pointing

    January 20, 2008 07:40 am at 7:40 am |