Romney Proposes Middle Class Deduction Checklist

GOP presidential nominee suggests ways his tax plan could remain deficit-neutral despite lower taxes
3:00 | 10/16/12

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Transcript for Romney Proposes Middle Class Deduction Checklist
Governor this question is for you it comes from -- along a lot sorry. -- Governor Romney. I'm. You have stated that if you're elected president. You would plan to reduce the tax rates for all the tax brackets. And that she would work with the congress. To eliminate some deductions in order to make up for the loss in revenue. Concerning the these various deductions the mortgage deduction. The a charitable deductions. The child tax credit. And also the what senator. -- The education credits which are important too because I have children in college. What would be your position on those things which are important to the middle way. Thank you very much an enemy tea you your apps you write about part of that which is I want to bring the rates down. I want to simplify the tax code and I want to get middle income taxpayers to have lower taxes. At and the reason I want middle income taxpayers to have lower taxes. Is because middle income taxpayers have been buried over the past four years. You've seen as middle income people in this country incomes go down 4300. Dollars a family. Even as gasoline prices have gone up 2000 dollars. Health insurance premiums up 2500. Dollars food prices -- Utility prices up the middle income families and America. Have been crushed over the last four years so -- to get some relief to middle income families that's part as part one. How about deductions -- I gotta bring rates down across the board for everybody. But -- -- -- limit deductions and exemptions and credits particularly for people at the high end. Because I am not gonna have people -- high -- pay less than they're paying now. The top 5% of taxpayers will continue to pay 60%. Of the income tax the nation collects. So that'll stay the same. Middle income people are getting a tax break. And so in terms of bringing their deductions one way of doing that would be to say everybody gets a pick a number 25000 dollars -- deductions and credits. And you can decide which ones to use. Your home mortgage interest deduction charity child tax credit and so forth you could use those as part of filling that bucket if you -- deductions but your rate comes down. And the burden also comes down and you for one more reason. And that is every middle income taxpayers. No longer will pay any tax and interest dividends or capital gains. No tax and your savings. That makes life a lot easier. If you're getting interest from a bank if you're getting. A statement from a a mutual fund or any of that kind of investment you have begun to worry about filing taxes on that because -- -- no taxes. For anybody making 200000 dollars a year and less on your interest dividends and capital gains. Why -- -- lowering taxes on the middle class because under the last four years they've been buried. And I want to help people Manila class and I will not. I will not under any circumstances. Reduce the share that's being paid by the highest income taxpayers and I will not under any circumstances. Increase taxes on the middle class the president spending. The president's borrowing. Will cost this nation to have to raise taxes on the American people not just at the high -- a recent study has shown. The people in the middle class will see 4000 dollars a year higher taxes as a result of the spending and borrowing in this administration. I will not let that happen. I'll get -- on track to a balanced budget. And I'm gonna reduce the tax burden on middle income families. What's second -- and help those families. And it's gonna create incentives to start growing jobs again this country thanks. My -- -- on taxes has been simple. And that is. I wanna give middle class families. And folks were striving to get in the middle class some relief. Because they have been hit -- over the last decade. Or less fifteen over the last twenty years. So for years ago I stood onstage just like -- -- through town hall lights and I would cut taxes for middle class families and that's what I've done by 3600 dollars. Let's that I would cut taxes for small businesses where the drivers and engines of growth we -- eighteen times. I wanna continue. Those tax cuts. For middle class families and for small businesses. What have also said as if we're serious about reducing the deficit. If this is genuinely a moral obligation to the next generation. In addition to some tough spending cuts. We've also got to make sure that. The wealthy -- a little -- more so -- that is your first 250000 dollars worth income. No change. And that means 98% of American families 97%. Of small businesses. They will not see a tax increase I'm ready to sign that built right now the only reason it's not happening. Is because. Governor Romney's allies in congress have helped the 98% -- hostage but they want tax breaks for the top 2%. But. What I also say it is for above 250000. We can go back to the experts we -- when Bill Clinton was president. We created 23 million new jobs. That's part of what took us from deficits. To surplus. You'll be good for our economy and will be good for job creation. Now governor Romney has a different philosophy. He was on sixty minutes just two weeks ago. And he was asked is that fair. For somebody like you making twenty million dollars a year to pay a lower tax rate than -- -- -- bus driver somebody making 50000 dollars in. He said yes I think that's fair. I already said I think that's what grows the economy. Like fundamentally disagree -- that. I think -- grow the economy is when you get that tax credit that we put in place. For your kids going to college I think that growth the economy. I think what -- the economy is what we make -- small businesses are getting a tax credit for hiring veterans who fought for our country back roads are content. So we don't have a different -- -- when governor Romney's stance here after a year campaign. When during a Republican primary he -- on stage and said I'm gonna get tax cuts. It and take tax rate cuts he's a tax cut to everybody including the top 1%. You should believe them. Because that's been -- history. And that's exactly the kind of -- down economics that is not go to work if we want a strong middle class and an economy that striving for everybody. -- -- -- -- -- -- Your -- they -- you heard what I said about my tax plan. The top 5% we'll continue to pay 60% as they do today I'm not looking to cut taxes for wealthy people. I am looking to cut taxes for middle income people. And what do -- want to bring rates down. And at the same time -- exemptions and deductions particularly for people to high end. Because if you bring rates down it makes it easier for small business to keep more their capital and hire people. And for me this is about jobs. I want -- -- get America's economy going again. 54%. Of America's workers work in businesses. That are taxed as individuals. So and to bring those rates down those small businesses are able to keep more money and hire more people. For me I look at what's happened in the last four years and say this have been a disappointment. We can do better on this we don't have to settle for. How many months 43 months with unemployment above 8%. 23 million Americans drug and find a good job right now. There -- three and a half million more women living in poverty today the when the president took office. We don't have to live like this we can get this economy going again my five point plan does it. Energy independence for North America in five years opening up more trade particularly in Latin America cracking down on China when they cheat. Getting to -- balanced budget. Fixing our training programs for our workers and finally -- -- small business I want to help small businesses grow and thrive. I know how to make that happen I spent my life in the private sector. I know why jobs come and why -- -- and they're going now because of the policies of this administration. Governor let me -- the presidents and and that what you just said that the governor says that he is not going to allow. The top 5%. -- was -- -- -- to have a tax cut that it will all even out nobody wants to do is give that tax cut to the middle class. -- No it's not subtle. Look. At the cost of lowering rates. For everybody across the board 40%. Along with -- what he also wants to do in terms of eliminating the estate tax along what he wants to do in terms of -- Changes in the tax code it cost about five trillion dollars. Governor Ronnie that also wants to spend two trillion dollars on additional military programs even though the military is not asking -- -- seven trillion dollars. He also wants to continue the bush tax cuts for the wealthiest Americans that's another trillion dollars that's eight trillion dollars. Now what he says he's going -- Make sure that this doesn't add to the deficit. And he's gonna cut middle class taxes. But when he is asked. How are you gonna do what which deductions. Which -- -- are -- close he can't. The fact that he only have to pay 14%. On his taxes when a lot of -- -- -- much higher. Now he's -- -- or capital gains are gonna continue to be. At a lower rate so we we're -- get money that way we haven't heard from the governor. Any specifics beyond big bird and eliminating funding for Planned Parenthood in terms -- -- -- pays for that. Now governor -- it was a very successful investor. If somebody came to your governor where they plan that said here I wanna spend. Seven or eight trillion dollars. And that we're gonna pay for but we can't tell you until maybe after the election how we're gonna do it. You wouldn't have taken such a sketchy deal. And -- -- -- the American people. Because the math doesn't add up. And and what's at stake here is one of two things either candy. This blows up the deficit. Because keep in mind this is just to pay for the additional. Spending but he's talking about seven a Troy -- -- before we even get the -- that we are yet. Or alternatively. It's gotta be paid for not only by closing deductions for wealthy individuals. That -- paper about 4% reduction in tax rates. You're gonna be plan for. You'll lose some deductions. And you can't buy this sales pitch nobody has looked at with serious actually believes it adds up. Mr. President let me get let me get the governor you know missing governor let's before we get into -- and vast array of who says what what study says -- -- If -- it shouldn't pat -- If somehow when you get in -- there isn't enough tax revenue coming in. If somehow the numbers don't -- would you be willing to look again at a 20%. Of. Of course they add up I I was I was someone who ran businesses. For 25 years and balance the budget. -- the Olympics and balance the budget. I ran the the state of Massachusetts as a governor to the extent any governor to -- and balance the budget all four years when we're talking about math doesn't add up. How about four trillion dollars of deficits over the last four years five trillion. That's -- doesn't add up. We have we -- we have a president talking about someone's plan it in a way that's completely. Foreign to what my real plan is. And then we have his own record which is we have four consecutive years where he said when he was running for office he would cut the deficit in half. Instead he's doubled it. We've gone from ten trillion dollars in national debt to sixteen trillion dollars -- national debt. If the president were reelected we go to almost twenty trillion dollars of national debt. This puts us on a road degrees I know what it takes to balance budgets I've done in my entire life. So Francis when he says yours is the five trillion dollar cut will no it's not because I'm offsetting some of the reductions with holding down some of the deductions. Any governor I got I got an -- -- to have you both and I understand state searing image via -- view but. I will get run out and I did run and I justice while the -- I just described you precisely how I do -- that's what this a single number that people can put. And they can put their their their deductions accredited that I -- that you're while keeping track -- issue.

This transcript has been automatically generated and may not be 100% accurate.

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