Tax Cuts Are Most Effective Stimulus: GOP's Romney

CNBC.com Mitt Romney

Tax cuts are the most effective tool to boost the economy, said Mitt Romney on CNBC’s “Squawk Box.” 

"Just mailing consumers a check and say go out and buy something... It's pretty obvious; businesses are not going to add employees and expand production for one or two month blip,” the former Republican presidential candidate said.

According to Romney, tax breaks increase individual and company spending power more effectively.

Middle income Americans should not have to pay taxes on dividends, interest or capital gains, Romney went on to say. “That gives them more money in their pocket and greater incentive to put more money into their investments,” he said.

Romney, a former governor of Masssachusetts, also advocated reducing the government funding to entitlement programs like Medicare, Medicaid and Social Security.

"The right answer here is not to take a larger and larger share of America's wallet for government," he said. "It is finally to live within our means and rein in the excessive obligations that government has burdened the American people with.”

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