Multimillionaire and former Republican Utah Sen. Mitt Romney believes the wealthy need to pay more in taxes to fund the doomed Social Security Trust Fund.
Romney wrote an op-ed in the New York Times published Friday advocating several ways to tax the rich more in order to fund the Social Security trust, which is bound to run out of money in 2034.
The former Republican presidential candidate, Utah senator, and Massachusetts governor acknowledged that “it’s time for rich people like me to pay more.”
“I believe in free enterprise, and I believe all Americans should be able to strive for financial success. But we have reached a point where any mix of solutions to our nation’s economic problems is going to involve the wealthiest Americans contributing more,” he wrote.
Romney said he has changed his mind on raising the FICA employment tax level due to the Social Security cliff.
“I long opposed increasing the income level on which FICA employment taxes are applied (this year, the cap is $176,100). No longer; the consequences of the cliff have changed my mind,” he wrote.
The former Utah senator also said he supports sealing a taxation loophole on large inheritances over $100 million that avoid the capital gains tax after they are passed down following the asset owner’s death.
Other avenues include slashing 1031 exchanges aimed at helping real estate developers put off capital gains taxes on the profitable sale of a building, eliminating SALT for the very wealthy, and looking into the tax rate on carried interest.
Romney said that while taxes can slow growth, he doesn’t believe those solutions will.
“Yes, taxes can slow growth. But most of the measures I propose would have a relatively small impact on economic growth. If my party wants to be the one to give working- and middle-class Americans greater opportunity — to be the party that is trying to restore some sense of confidence in our capitalist system — this would be a start,” he wrote.
Romney’s changing stances on taxing the rich underscore the political urgency directed at avoiding the Social Security Trust Fund’s demise. If the fund runs out, it will result in sharp benefit cuts for retirees that many hope to avoid. Besides raising taxes, Romney mentioned that Social Security benefits should be need-based and consider linking payments to the American life expectancy.
Romney used to be one of the wealthiest members of Congress after he buoyed himself to the Republican presidential nomination in 2012 with robust fundraising. His new tax proposal goes against his personal holdings.
Quiver Quantitative, a company aimed at helping regular people trade like Wall Street insiders, estimates Romney is worth $253 million. Most of his wealth is in mutual funds. Romney built most of his fortune during his business career and as the founder of private equity firm Bain Capital.
The Republican left electoral politics this year after he announced he wouldn’t seek reelection to his Utah Senate seat. Romney told Southern Methodist University’s student newspaper in October that he’s settled back into business, is spending time with his family, and enjoys speaking at colleges since leaving politics.
ROMNEY REVEALS HE PRESSED BIDEN TO PARDON TRUMP
Romney said that these proposals could “quiet” progressive anger about the wealthy not paying their fair share.
“It would help us avoid the cliff ahead, and may tend to quiet some of the anger that will surely grow as unemployed college graduates see tax advantaged multibillionaires sailing 300-foot yachts,” he concluded.
