Former Senator Mitt Romney has called for raising taxes on the wealthiest Americans as a necessary measure to secure the future of Social Security. In an opinion piece published in the New York Times on March 15, 2024, Romney emphasized that the current trajectory of the Social Security trust fund could lead to significant benefit cuts by the year 2034.
Romney highlighted that if the trust fund runs out, retirees may face a reduction of nearly a quarter in their benefits, which he described as a looming crisis for many Americans. He stated that addressing this issue will require trillions of dollars and warned that failure to act could result in “economic calamity.”
The discussion surrounding taxes has shifted significantly within the Republican Party, particularly under the influence of former President Donald Trump. Romney, who has often been viewed as a representative of the pre-Trump Republican establishment, argues that the party must adapt to meet the needs of working-class Americans. He pointed out the need for a dual approach: increasing taxes on the wealthy while also controlling government spending.
Romney’s proposal marks a notable change from his previous stances as the 2012 Republican presidential nominee, when his tax plan was criticized for favoring the affluent. The former venture capitalist, whose net worth has been estimated at around $270 million, now advocates for a more progressive tax structure.
He criticized past efforts to cut government spending during Trump’s presidency, referring to initiatives such as the Department of Government Efficiency as ineffective. Instead of merely closing tax loopholes for the wealthy, which he noted should be described as “caverns” due to their vastness, Romney called for comprehensive tax reforms.
One specific issue he raised was the treatment of large capital gains. Under current tax provisions, significant capital gains are not taxed upon death, allowing heirs to inherit substantial wealth without paying taxes on the appreciation value. He illustrated this point with an example involving entrepreneur Elon Musk, explaining how heirs could avoid taxes on nearly $499 billion worth of capital gains through a provision known as the step-up in basis.
Romney argued that while this provision may serve a purpose for family farms, it disproportionately benefits billionaires. He believes that reforming this aspect of the tax code could contribute significantly to funding Social Security and ensuring its viability for future generations.
As discussions around economic inequality and tax reform continue to shape the political landscape, Romney’s call for a tax increase on the wealthy could signal a shift in how the Republican Party approaches fiscal policy. His perspective may resonate with voters concerned about the long-term sustainability of Social Security and the growing wealth gap in the United States.
