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Presidential debate: Romney looking at different caps on tax breaks

8:16 PM, Oct 3, 2012   |    comments
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Video: Obama and Romney talk about tax cuts

Video: Obama talks about Romney and tax loopholes

Mitt Romney. Photo courtesy of Getty Images.

JIM KUHNHENN
Associated Press

WASHINGTON (AP) - Mitt Romney's idea to impose a $17,000 limit on taxpayer deductions would hit the wealthy the hardest. But that limit by itself wouldn't fully make up for revenue lost in Romney's plan to reduce all income tax rates by 20 percent.

Campaign officials say the ceiling on deductions is part of a three-pronged approach that Romney is considering. The idea is to limit tax breaks in order to pay for lower overall tax rates. Romney says his plan would reduce the top tax rate from 35 percent to 28.

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The officials say Romney is also considering limits on the standard exemption that most taxpayers claim and the tax exclusion for employer-backed health insurance.

The officials spoke on condition of anonymity to discuss details of the plan that Romney hasn't announced.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Associated Press

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