Overview
- In a New York Times op-ed, Mitt Romney proposes raising the FICA payroll tax income cap (now $176,100) and closing large tax advantages for the ultra-wealthy, including limiting step-up in basis for mega-estates over $100 million, tightening 1031 exchanges, and reviewing carried interest and SALT for the very rich.
- On spending, he urges means-testing Social Security and Medicare for future beneficiaries and linking eligibility ages to life expectancy, while rejecting benefit cuts for current or near retirees.
- He warns the Social Security Trust Fund is projected to be exhausted in fiscal 2034, which actuaries estimate would trigger about a 23% reduction in scheduled benefits without congressional action.
- Romney acknowledges that higher taxes can slow growth but argues his targeted measures would have relatively small economic effects and would address fairness concerns tied to wealth concentration.
- The op-ed drew quick praise from many Democrats and progressive commentators and criticism from conservatives, including Sen. Mike Lee’s office, marking a notable break with GOP tax orthodoxy and prompting debate but no legislative moves.