Romney proposes to slash personal income taxes by 20 per cent

Feb 22, 2012, 23:37 GMT

Washington - Republican presidential candidate Mitt Romney on Wednesday unveiled a tax plan that would include a 20-per-cent across the board cut in US income taxes.

Announced at a campaign event in Arizona, the plan comes as Romney seeks to shore up his campaign ahead of primaries next week in Michigan and Arizona and March 6's 'Super Tuesday,' when 11 states make their picks for the party nominee to face President Barack Obama in November presidential elections.

Romney, long seen as the party's heir apparent, has failed to shore up support as a series of conservative rivals have risen to the top of opinion polls in bids to overtake him in the nomination race. Most recently, former Pennsylvania senator Rick Santorum has taken on the mantle of conservative standardbearer with a series of wins this month in smaller states and a rise in national surveys of Republicans.

Romney's tax plan comes as Obama released his own proposals Wednesday for overhauling the corporate tax code.

Romney, who had a long career in the venture capital business before being winning a term as Massachusetts governor, has touted his business experience to revive the economy and sought to paint a sharp contrast with Obama, who hopes to raise taxes on the highest-earning Americans.

Romney said he would lower taxes on all taxpayers, claiming Obama's plans would have a negative impact on job creation.

The plan would lower personal taxes by one-fifth in each income bracket, with the highest rate falling to 28 per cent from 35 per cent. Romney argued that the cuts would not add to the country's 1-trillion-dollar annual deficit because they would spur growth and be offset by government spending cuts.

He would keep taxes on investment income at the current 15 per cent, rather than hiking high-income capital-gains taxes as Obama would, and ensure that those making less than 200,000 dollars a year would pay no taxes on their investments. Romney would cut the corporate tax rate to 25 per cent from 35 per cent.