Romney Calls for Tax Cuts on Savings

By: Lisa Wangsness

Boston Globe

Saturday, Sep 08, 2007

"Mitt Romney rolled out one of the most detailed tax cut plans yet among the major presidential candidates yesterday, proposing to eliminate taxes on income from interest, dividends, and capital gains for the vast majority of Americans.

"In several appearances in New Hampshire, Romney said his proposal, which would give the tax break to those earning less than $200,000 a year, would be a boon to the middle class.

"'You can save your money for a down payment on a house, for a car, for a boat, for college for your kids, whatever the heck you want,' he told about 75 people gathered at a coffee shop yesterday morning. 'Government shouldn't be telling you they're going to tax you on your savings.'"

...

"Eric Fehrnstrom, a spokesman for Romney, said the plan would not benefit the wealthiest Americans and pointed out that 95 percent of American households earn less than $200,000.

"The campaign did not provide an average savings under the plan, but said that based on 2005 tax returns, more than 56 million taxpayers would benefit from eliminating the tax on interest, 28 million from ending the tax on dividends, and 23 million from killing the tax on capital gains. About 134 million individual returns were filed that year.

"'It is a powerful incentive to save, and it's a generous benefit aimed at the middle class,' he said.

"Richard Holmes, 59, of Lebanon, N.H., a semiretired contract coordinator for a utility company, said the plan could help him when he retires and relies on his savings, as well as Social Security. But he said he also liked the principle of the idea.

"'I think it makes a lot of sense,' said Holmes, who heard Romney speak at his town's senior center yesterday afternoon. 'You shouldn't have to pay taxes on money you've already paid taxes on.'"

...

"The proposal, Romney said, would not only ease the burden of trying to save for most families, it would also contribute to economic growth.

"'As we're saving our money and investing in the bank or investing in stocks, we're going to help encourage the creation of new businesses and grow the businesses that already exist,' he said, which means 'growing additional jobs.'

"His campaign said the tax cut plan would also help homeowners struggling with mortgage payments, and also aid people trying to buy houses by boosting savings they could use for down payments, particularly now that the credit crunch has made it more difficult to obtain mortgages." ...

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