Numerous observers (especially those of the supply-side persuasion) have eagerly awaited the release of Mitt Romney’s long-awaited addendum to his tax proposals. With a hat tip to James Pethokoukis, Larry Kudlow passed along the following:
Team Romney tells me there will be a bolder tax-cut plan released either at the debate tomorrow night (if Mitt gets it in) or more formally at his Detroit Economic Club speech on Friday. I’m embargoed from releasing details until tomorrow. But I can say that the new plan will be across-the-board with supply-side incentives from rate reduction, and that it will help small-business owners as well as everyone else.
Pethokoukis then offers some predictions regarding the proposal’s content:
– Romney has said he doesn’t want to raise capital gains tax rates, which Simpson-Bowles does.
– Romney wants to lower the corporate rate to at least 25 percent, meaning the top marginal tax rate probably needs to be in that vicinity.
– Romney is unlikely to suggest a net tax increase.
– Romney is unlikely to propose anything that would result in his own taxes directly being cut.
– Romney is unlikely to suggest “paying for” upper-income tax hikes by raising taxes on the middle class.
– Romney economic adviser Glenn Hubbard recently suggested “a progressive consumption tax, equalising the tax treatment of debt and equity, and drastically lowering tax rates on dividends and capital gains.”
A bold, supply side-friendly plan carries plenty of potential to make inroads among the party base, but it also further exposes him to class warfare attacks (“Gov. Romney wants to give more tax breaks to rich people like him, while the the middle class continues to struggle.”).
However, with the troubles he has recently encountered, this seems like a risk worth taking. Many have lamented that Romney’s campaign lacks “vision” – an overarching theme that clearly articulates the main goals of a Romney administration, or, phrased more bluntly, justification for its existence. By injecting some supply side into his campaign, Romney can take up the prosperity “mantle” and entice Americans with the prospect of a more dynamic and vibrant economy – and, consequently, country.