US Republican presidential candidate and former Massachusetts Governor Mitt Romney speaks at a campaign stop in Reno, Nevada, January 18, 2008. The Nevada caucuses are January 19.
(REUTERS/Max Whittaker)
LAS VEGAS (Reuters) - Weighing in on a debate about stimulating the slowing U.S. economy, Republican presidential contender Mitt Romney is calling for a package of tax breaks expected to cost $250 billion, an aide said on Friday.
The former Massachusetts governor's package centered on several permanent tax cuts, rather than temporary rebates and spending programs favored by others engaged in the stimulus discussion in Washington and on the campaign trail.
The package was first reported by the CNBC television network and confirmed by Romney spokesman Eric Fehrnstrom.
Romney, who has been campaigning in Nevada ahead of its nominating contest on Saturday, plans to propose permanently reducing the rate for the lowest income tax bracket to 7.5 percent from 10 percent, retroactive to 2007. He also wants to eliminate Social Security payroll taxes for workers over 65 and eliminate capital gains and dividend taxes on households earning less than $200,000 a year.
He also would permanently reduce the corporate tax rate to 20 percent from 35 percent over two years and allow businesses to depreciate the value of new equipment purchases faster.
President George W. Bush earlier on Friday called on Congress to enact a package of temporary tax cuts and other measures estimated to cost up to $150 billion.
On the potential impact on the long-term budget deficit of his package, Romney told CNBC, "If we go into recession, the cost to our balanced budget is going to be far more severe than the cost of this program."
"The kinds of stimulative actions we take should be pro-growth. They aren't just writing checks for people to buy oil or TVs," he said, according to CNBC.
(Reporting by Kevin Drawbaugh in Washington and Jason Szep in Las Vegas; Editing by Bill Trott)
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