Mitt Romney on The Economy

Last Updated : Sep 19, 2012

Summary

Governor Romney's overall economic philosophy has remained consistent in that he seeks to both lower taxes and reduce spending to balance budgets. At times, he has sought to bring the federal government into the private market to address specific needs.

2008 Presidential Election

Governor Romney's 2008 economic plan as part of his presidential campaign addressed individual tax rates, corporate tax rates, and changes to FHA loan limits to help homeowners. This plan was proposed as some economic turmoil was on the horizon, but Governer Romney was no longer in the race when the economy began to completely collapse.

  • Individualsrn
    • Permanently Reduce The Lowest Income Tax Bracket to 7.5%
    • Permanently Eliminate Payroll Taxes On Employees Over The Age Of 65
    • Make Middle-Class Savings Tax Free
    • Make the Bush Tax Cuts permanent
    • End the Death Tax
    • Patch or permanently end the AMT
    • Make The Research And Development Tax Credit Permanent
    • Oppose Any Increase In Social Security Taxes
  • Businessrn
    • Institute Immediate 100% Expensing Of New Equipment Purchased By A Business For A Two-Year Period Retroactive To January 1, 2008
    • Reduce The Corporate Tax Rate To 20% Over Two Years
  • Homeownersrn
    • Reform And Expand Federal Housing Administration (FHA) Loan Portfolio Limits

2012 Presidential Election

Governor Romney's economic plan for the 2012 election cycle reflects the changing realities and needs that have evolved since the 2008 election cycle. The plan is also much more definititve and specific, outlining 5 executive orders that Governor Romney would enact immediately as president, 5 laws that he would call for immediately, and then lists his specific policy stances. The bills that Governor Romney would call for would include lowering the corporate income tax rate, implementing free trade agreements, sparking greater domestic energy production, cutting non-security discretionary spending by 5 percent, and returning employment retraining programs to the states.

The five orders that Governor Romney would issue on his first day as President would be the ending of Obamacare, a reduction in regulation started by President Obama, rapid issuance of drilling permits to developers with established safety records, sanctions on China for unfair trade policies, and reversing unfair labor practices put in place by President Obama. The specifics of the plan are oultined in a short summary and a 160 page detailed plan. The outline below shows some of the specifics of the plan.

  • Tax Policy
    • Individual Taxes
      • Maintain marginal rates at current levels
      • Further reduce taxes on savings and investment
      • eliminate the death tax
      • Long term goal - pursue a flatter, fairer, simpler structure
    • Corporate Taxes
      • Lower the corporate income tax rate to 25%
      • Transition to a "territorial" tax system
  • Regulatory Policy
    • Repeal and replace Obamacare and Dodd-Frank
    • Review and eliminate Obama-era regulations
    • Cap new regulatory costs at zero dollars
    • Require Congress to approve all major regulations
    • Reform legal liability system
  • Trade Policy
    • EXPANDED MARKETS
      • Implement pending Free Trade Agreements
      • Conclude Trans-Pacific Partnership and pursue additional agreements
      • Create Reagan Economic Zone
    • CONFRONTING CHINA
      • Increase enforcement of existing law
      • Impose punitive measures if unfair trade practices continue
  • Energy Policy
    • SIGNIFICANT REGULATORY REFORM
      • Streamline and fast-track approval processes
      • Amend Clean Air Act to exclude regulation of carbon
    • INCREASED PRODUCTION
      • Conduct comprehensive survey of the nation’s reserves
      • Open reserves to exploration and production
    • RESEARCH AND DEVELOPMENT
      • Focus investment in basic research
      • Utilize DARPA-like funding mechanisms
  • Labor Policy
    • Appoint experienced and even-handed arbiters to the NLRB
    • Guarantee businesses the right to allocate capital as they choose
    • Protect right of workers to choose whether to unionize
    • End funding of union political campaigns through paycheck deductions
  • Human Capital Policy
    • RETRAINING WORKERS
      • Consolidate unwieldy sprawl of federal programs
      • Return authority, responsibility, and funds to states for retraining programs
      • Support private-sector participation in the process
    • THE BEST AND THE BRIGHTEST
      • Raise visa caps for highly skilled foreign workers
      • Give permanent residency to eligible advanced-degree recipients
  • Fiscal Policy
    • Cut federal spending and cap it at 20 percent of GDP
    • Block grant Medicaid and pursue further entitlement reform
    • Reduce the federal workforce
    • Restructure the federal government
    • Pursue a Balanced Budget Amendment

 

2008 Economic Plan

In January of 2008, Governor Romney put forth an economic plan as part of his 2008 Presidential campaign. The plan consisted of tax reform for individuals and businesses, and relief for homeowners.

  • Individuals
    • Permanently Reduce The Lowest Income Tax Bracket to 7.5%
    • Permanently Eliminate Payroll Taxes On Employees Over The Age Of 65
    • Make Middle-Class Savings Tax Free
    • Make the Bush Tax Cuts permanent
    • End the Death Tax
    • Patch or permanently end the AMT
    • Make The Research And Development Tax Credit Permanent
    • Oppose Any Increase In Social Security Taxes
  • Business
    • Institute Immediate 100% Expensing Of New Equipment Purchased By A Business For A Two-Year Period Retroactive To January 1, 2008
    • Reduce The Corporate Tax Rate To 20% Over Two Years
  • Homeowners
    • Reform And Expand Federal Housing Administration (FHA) Loan Portfolio Limits

 

 

CNN Interview

In a January 2008 interview on CNN, Governor Romney was contrasting himself against Senator McCain. He noted that Senator McCain opposed the Bush Stimulus while he supported it, and Senator McCain opposed the Bush tax cuts and Governor Romney supported it.

 

Manchester Town Hall

On June 3, 2011 Governor Romney gave a town hall in Manchester, New Hampshire at the University of New Hampshire. When asked about the economy, he lists 7 things that he would address from spending to taxes to health care.

  1. Lower corporate and employer taxes
  2. Update regulatory and bureaucratic structures
  3. Adjust trade policies to be fair
  4. Put the US on track to be energy independent
  5. Abide by the rule of law
    1. labor rules, bankruptcy rules, etc
  6. Fix education
  7. Government cannot spend more than it takes in

 

New Hampshire Debate

On June 13, 2011 Governor Romney participated in the 2011 Republican debate in New Hampshire. When asked about the comparisons between his plan and President Obama's plan, Governor Romney notes the differences between the two plans.

 

Keene Town Hall

In August of 2011, Governor Romney spoke at a town hall in Keene, New Hampshire. When asked about his economic plan, Governor Romney outlined that same 7 principles that he had spoken about in Manchester.

 

Iowa Debate

In August of 2011, Governor Romney participated in the Republican debate in Ames, Iowa. He spoke about a number of steps that he would take to fix the economy.

 

Believe in America Plan

On September 6, 2011, Governor Romney came out with his Believe in America economic plan. The 160 page plan had a 5 page summary. Governor Romney's plan consists of 5 bills that he would call for upon assuming office, and 5 executive orders that he would give after assuming office. These bills would include lowering the corporate income tax rate, implement free trade agreements, greater domestic energy production, cut non-security discretionary spending by 5 percent, and return retraining programs to the states.

The five orders that Governor Romney would issue on his first day as President would be the ending of Obamacare, a reduction in regulation started by President Obama, rapid issuance of drilling permits to developers with established safety records, sanctions on China for unfair trade policies, and reversing unfair labor practices put in place by President Obama.

  • Tax Policy
    • Individual Taxes
      • Maintain marginal rates at current levels
      • Further reduce taxes on savings and investment
      • eliminate the death tax
      • Long term goal - pursue a flatter, fairer, simpler structure
    • Corporate Taxes
      • Lower the corporate income tax rate to 25%
      • Transition to a "territorial" tax system
  • Regulatory Policy
    • Repeal and replace Obamacare and Dodd-Frank
    • Review and eliminate Obama-era regulations
    • Cap new regulatory costs at zero dollars
    • Require Congress to approve all major regulations
    • Reform legal liability system
  • Trade Policy
    • EXPANDED MARKETS
      • Implement pending Free Trade Agreements
      • Conclude Trans-Pacific Partnership and pursue additional agreements
      • Create Reagan Economic Zone
    • CONFRONTING CHINA
      • Increase enforcement of existing law
      • Impose punitive measures if unfair trade practices continue
  • Energy Policy
    • SIGNIFICANT REGULATORY REFORM
      • Streamline and fast-track approval processes
      • Amend Clean Air Act to exclude regulation of carbon
    • INCREASED PRODUCTION
      • Conduct comprehensive survey of the nation’s reserves
      • Open reserves to exploration and production
    • RESEARCH AND DEVELOPMENT
      • Focus investment in basic research
      • Utilize DARPA-like funding mechanisms
  • Labor Policy
    • Appoint experienced and even-handed arbiters to the NLRB
    • Guarantee businesses the right to allocate capital as they choose
    • Protect right of workers to choose whether to unionize
    • End funding of union political campaigns through paycheck deductions
  • Human Capital Policy
    • RETRAINING WORKERS
      • Consolidate unwieldy sprawl of federal programs
      • Return authority, responsibility, and funds to states for retraining programs
      • Support private-sector participation in the process
    • THE BEST AND THE BRIGHTEST
      • Raise visa caps for highly skilled foreign workers
      • Give permanent residency to eligible advanced-degree recipients
  • Fiscal Policy
    • Cut federal spending and cap it at 20 percent of GDP
    • Block grant Medicaid and pursue further entitlement reform
    • Reduce the federal workforce
    • Restructure the federal government
    • Pursue a Balanced Budget Amendment

 

Reagan Debate

In September of 2011, Governor Romney participated in the Republican debate in the Reagan Library. He compares his experience to a career in the public sector.

 

TEA Party Debate

In September of 2011, Governor Romney participated in the TEA Party debate in Tampa Bay, Florida. He spoke about his economic policy on taxes, trade, and energy.

 

2012 Campaign Website Statements

 

References

[1] Website: CNN Article: CNN LATE EDITION WITH WOLF BLITZER Author: NA Accessed on: 06/30/2011

[2] Website: Mitt Romney Road to the Whitehouse Article: Mitt Romney's Economic Stimulus Plan for America Author: NA Accessed on: 09/06/2011

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