Romney breaks with GOP orthodoxy, says 'rich people like me' should pay more taxes to fix debt

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Romney breaks with GOP orthodoxy, says 'rich people like me' should pay more taxes to fix debt

Former Utah senator calls for closing tax 'caverns' and lifting FICA caps as US approaches fiscal cliff

Rachel del Guidice Fox News

Published

December 19, 2025 6:15pm EST

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Former Sen. Mitt Romney, R-Utah, says wealthy Americans should pay higher taxes in a hot-off-the-press New York Times essay.

"Typically, Democrats insist on higher taxes, and Republicans insist on lower spending. But given the magnitude of our national debt as well as the proximity of the cliff, both are necessary," Romney wrote in the essay, published Friday.

"DOGE took a slash-and-burn approach to budget cutting and failed spectacularly. Europe demonstrates that exorbitant taxes without spending restraint crushes economic vitality and thus speeds how fast the cliff arrives," he wrote.

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Former senator Mitt Romney, R-Utah, says wealthy Americans should pay higher taxes in a hot-off-the-press New York Times essay. (Ting Shen/Bloomberg via Getty Images)

Romney said that when it comes to cutting spending, "only entitlement reform would make a meaningful difference," and then argued that taxing the rich is the other part of the answer as the country is headed toward a fiscal "cliff."

"And on the tax front, it’s time for rich people like me to pay more," Romney wrote. "Our roughly 17 percent average tariff rate helps the revenue math. Doubling it — which seemed possible shortly after ‘Liberation Day’ — would further burden lower- and middle-income families, and would have severe market consequences."

Romey said that he used to be against increasing the income level where FICA employment taxes, mandatory federal payroll taxes that fund the Social Security and Medicare programs, are administered, with the cap being at $176,100 for 2025, but he said he no longer does.

"The largest source of additional tax revenues is also probably the most compelling for fairness and social stability," Romney wrote. "Some call it closing tax code loopholes, but the term ‘loopholes’ grossly understates their scale. ‘Caverns’ or ‘caves’ would be more fitting."

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Romney said that when it comes to cutting spending, "only entitlement reform would make a meaningful difference," and then argued that taxing the rich is the other part of the as the country is headed toward a fiscal "cliff." (Kurt "CyberGuy" Knutsson)

Romney used Elon Musk and his wealth to illustrate his argument.

"Consider, for example, the cavern of the capital gains tax treatment at death for those with enormous estates," Romney wrote. "Let’s look at a hypothetical scenario using Elon Musk as a proxy. If he had originally purchased his Tesla stock with, say, $1 billion and held it until his death, and if it were then worth $500 billion, he would never pay the 24 percent federal capital gains tax on the $499 billion profit. Why? Because under the tax code, capital gains are not taxed at death."

Romney added, "The tax code provision known as step-up in basis means that when Mr. Musk’s heirs get his stock, they are treated as if they purchased it for $500 billion. So no one pays taxes on the $499 billion capital gain. Ever."

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While a rapidly growing economy would help, the realistic solution to fixing the country’s financial woes, Romney said, is to tax the rich. (OZAN KOSE/AFP via Getty Images)

While a rapidly growing economy would help, the realistic solution to fixing the country’s financial woes, Romney said, is to tax the rich.

"I believe in free enterprise, and I believe all Americans should be able to strive for financial success," Romney 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."

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Rachel del Guidice is a reporter for Fox News Digital. Story tips can be sent to rachel.delguidice@fox.com.

Romney breaks with GOP orthodoxy, says 'rich people like me' should pay more taxes to fix debt