“NEW YORK (CNNMoney) — In a switch to a more aggressive tax plan, Mitt Romney said Wednesday that he now favors cutting marginal tax rates for individuals by 20%.
The candidate had previously said he would “maintain current tax rates on personal income” as president before moving to a “fairer, flatter, simpler tax structure” in the future.
Now Romney appears to be accelerating that timetable, announcing a move that would reduce the current top rate paid on income from 35% to 28%, with similar reductions across all tax brackets.
For example, Americans in the lowest bracket would pay 8% instead of 10%. Americans closer to the middle would pay 20% instead of 25%.
“Obviously this is a bigger step,” said Roberton Williams, a Tax Policy Center scholar who has been analyzing the 2012 candidates’ tax plans. “It’s a substantial cut and quite the switch.”
The tax cuts will be offset by limits placed on deductions, exemptions and credits currently available to top-level income earners.
“The right way forward is a flatter, fairer, simpler tax system that generates the revenue we need to fund a smaller government that is restrained to its historical size,” Romney said in a statement.
In a conference call with reporters, Romney economic adviser Glenn Hubbard said that the tax plan, even with rate cuts for individuals, should be revenue neutral….”
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