Such a proposal coming from Romney, a former venture capitalist whose net worth was estimated to be as high as $270 million, is a stark departure from his previous positions. As the 2012 Republican presidential nominee, Romney’s tax plan was slammed for doing the very thing he decried in his op-ed — sparing the wealthy from paying more in taxes.
Romney wrote that efforts to cut spending during President Donald Trump’s second term, like the so-called Department of Government Efficiency, “took a slash-and-burn approach to budget cutting and failed spectacularly.” While some have called for closing tax loopholes that allow wealthy Americans to hold onto their wealth, Romney said those loopholes would be better described as “caverns” or “caves” due to their scale.
For instance, large capital gains are not taxed upon death, meaning inheritors of wealth don’t have to pay taxes on wealth earned after an initial investment. Romney outlined a hypothetical scenario where entrepreneur Elon Musk bought his original Tesla stock for $1 billion and held it until his death, when it was worth $500 billion.
Under a tax provision called step-up in basis, that money would be treated as if Musk’s heirs purchased it for $500 billion.
“So no one pays taxes on the $499 billion capital gain. Ever,” Romney wrote. “This unusual provision makes sense when you’re talking about helping families keep their family farms. But it’s used by billionaires to avoid capital gains taxes.”
Romney also highlighted 1031 exchanges — which allow property owners to avoid paying capital gains taxes on investment properties by reinvesting profits in similar properties — as something that needs to be reformed.
“I presume these provisions were originally intended to stimulate the real estate industry,” Romney wrote. “Today, they insulate multibillionaires.”
Lower taxes are often pitched as a way to boost the nation’s economy. Romney said politicians have followed the logic that a booming economy will “save us from the debt cliff,” but that moment has proved elusive. He acknowledges that taxes can slow growth, but said the changes he is proposing would only moderately impact future growth.
“I believe in free enterprise, and I believe all Americans should be able to strive for financial success,” he wrote. “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 added, “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.”
Romney’s op-ed was met with opposition from Utah Sen. Mike Lee, who served with Romney in the Senate for six years.
“Sen. Lee knows, as do all conservatives, that you can’t tax your way to prosperity, but you can kill jobs, investment and growth for American families,” said Billy Gribbin, Lee’s spokesman. “We will not be doing that.”
But the Utah Taxpayers Association, a group that typically advocates for lower taxes, didn’t dismiss the idea outright.
“With someone who has been as successful as Sen. Romney, it would be unwise to dismiss his thoughts. They deserve consideration,” said Billy Hesterman, the group’s president. “We would hope Congress focuses on cutting spending as much as possible before ever considering any tax increase.”
Affordability has become a potent source of political frustration for voters on both sides of the aisle. New York City Mayor-elect Zohran Mamdani wants to tax the rich to help cover social services and has proposed raising the city’s corporate tax rate to 11.5% and a 2% tax hike on city residents earning more than $1 million a year.
Earlier this year, a Utah Senate committee rejected a bill that would have raised taxes on those making $1 million. Sen. Nate Blouin, D-Millcreek, the bill sponsor who’s now running for Congress, reacted warmly to Romney’s new stance on the issue.
“Taxing the ultra-wealthy is an idea so obvious that both Bernie Sanders and Mitt Romney agree it’s the right way forward,” Blouin said.
Brian King, chair of the Utah Democratic Party, agreed.
“It only makes sense and is fair that people should contribute according to what they have,” King said in a statement. “If we’re going to get our financial house in order, we need to start living more as Romney advocates here.”
