Romney Proposes Reductions Tax Rates

Republican presidential candidate Mitt Romney today proposed cutting corporate and individual taxes, turning the focus of the Republican presidential campaign back to economic issues just hours before a potentially crucial televised debate.

“My plan will create jobs,” Romney told a campaign rally in Chandler, Arizona.

Romney’s proposal would set a permanent top tax rate of 28 percent, cut corporate taxes to 25 percent from 35 percent, eliminate the estate tax and scrap the alternative minimum tax.

To pay for the cuts and reduce the federal budget deficit, Romney said he’d trim $500 billion in spending by 2016.

Romney’s announcement came as President Barack Obama is proposing a reduction in the corporate tax rate to 28 percent. Obama’s plan would remove tax breaks for companies to help offset lost revenue.

To contact the reporter on this story: Lisa Lerer in Shelby Township, Michigan at llerer@bloomberg.net

To contact the editor responsible for this story: Jeanne Cummings at jcummings21@bloomberg.net

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