“Tax Returns And Now Tax Policy”: Mitt Romney’s Two Front Tax-Withholding
You’d think Mitt Romney’s campaign would be happy about the report this week by the Tax Policy Center—the demands for the former Massachusetts governor to release more of his tax returns have finally been quieted. Of course they’re none too pleased that the obsession with his making public more tax returns has been replaced by calls for him to release more of his tax plans.
Romney’s tax plan contemplates an across the board 20 percent tax cut, among other things. He and his people swear that the plan would be revenue neutral—it would not cause the budget deficit to further balloon—because while he cut rates he would also close loopholes. Which ones? He has pointedly not said, and scoffed whenever any independent groups tried to run the numbers to figure out how his plan would work. “It can’t be scored because those kind of details have to be worked out with Congress and we have a wide array of options,” he told CNBC in March. How could he be sure that his tax plan is revenue neutral if the details haven’t been worked out yet? You’ll just have to trust him on this.
But the new Tax Policy Center blows this argument out of the water—they ran the numbers and figured out that no matter which numbers Romney plugs in (even magical, supply-side, dynamic scoring numbers), there aren’t enough loopholes to close to pay for the tax cuts. The result would be what the New York Times’s Paul Krugman calls Dooh Nibor—reverse Robin Hood economics: Rob from the middle class to pay the wealthy.
Romney’s team has flailed around trying to discredit the Tax Policy Center, calling the group’s credibility into question (though Romney-cons cited it as authoritative earlier in the campaign) and arguing that it doesn’t take into account the special economic growth mojo of tax cuts (it in fact does). Here’s what they haven’t done: release the missing details that make his plan add up. Maybe that’s because they haven’t worked out the details yet (so how do you know the numbers will add up?). Or maybe it’s because the details involve numbers of Romney’s own invention which defy the ordinary laws of arithmetic and exist at a frequency which can only be heard by dogs traveling down the highway at high speeds while strapped to the roofs of cars. That would actually answer a few questions.
Romney’s two front tax-withholding—not giving an inch more on his tax returns or his tax plans—reminds me of the old aphorism attributed to Abraham Lincoln that it’s better to remain silent and be thought a fool than to speak and remove all doubt. It seems like the Romney campaign is updating and adapting the sentiment for modern politics. They’re testing whether it’s better to be silent and thought to be hiding something damaging than to fully disclose and remove all doubt.
By: Robert Schlesinger, U. S. News and World Report, Washington Whispers, August 3, 2012
“Romney’s Olympic Tax Myth”: Like A Designer Drug For The Fox News Set
More than catnip, this latest conservative tax myth is like a designer drug for the Fox News set, tailored perfectly for maximum impact at a time when Americans are hungry for anything Olympics-related. The offense: According to Americans for Tax Reform, Grover Norquist’s anti-tax outfit, President Obama’s IRS will tax Olympic winners up to $9,000 after they return home victorious from London. Conservative blogs are having a field day and Republican politicians are clamoring to capitalize on news. Darling Sen. Marco Rubio of Florida introduced a bill to exempt Olympians’ winnings from taxes and an adviser to Mitt Romney told reporters today, “He believes that there should be no taxation of the type you are describing.” They’re calling on Obama to support the plan.
The only problem: It’s not really true. In addition to their medals, American winners are given prize money from the U.S. Olympic Committee: $25,000 for gold, $15,000 for silver, and $10,000 for bronze. Their medals are also worth about $675, $385 and under $5, respectively. ATR says this all gets taxed at 35 percent, meaning a gold medalist owes $8,986, silver winners owe $5,385, and bronzers owe $3,502.
First off, the medals aren’t subject to taxes. Mark Jones, the communications director for the U.S. Olympic Committee told Salon in an email, “There is no ‘value’ to medals and there is no tax associated with it.”
As for the prize money, according to Politifact, ATR’s claim is “mostly false.” Consulting accountants who have worked with athletes, the fact-checking website noted that while the money is certainly taxable, athletes could deduct all the expenses that went into getting them to the podium, including travel costs, equipment, training and coaching fees from the previous year. Those are all considered business expenses, and could lower or even eliminate an athlete’s tax liability, depending how much they spent. Moreover, the 35 percent rate assumes athletes are in the highest income bracket, earning over $380,000 a year. While some Olympians certainly make millions, the majority of athletes probably do not. Many are barely scraping by, lacking sponsorship deals and unable to work full-time due to training demands. (We wrote yesterday about marathoner Guor Marial, who works from 11 p.m. to 9 a.m. at a home for mentally disabled adults every night so he can spend his days training.) This would put them in a lower tax bracket where they would pay far less, or even nothing, on their winnings, even before deductions.
A quick Nexis search revealed zero stories from 2004 and 2008 about Olympians being taxed for their winnings. One would think, judging by how much attention the story is getting today, that there would have been articles written then about disappointed athletes who returned home to find a hefty tax bill. We did find several stories like that, but they were all from Canada.
Moreover, while it may be politically popular to exempt Olympic winnings, there’s no real reason why they should be treated any differently from, say, the prize money that comes with winning a Nobel or Pulitzer Prize, or even the lottery, all of which are taxed like any other income. Past Nobel laureates have complained about being taxed for their prize, which at about $1.4 million, would produce a much larger bill than the gold medalist’s winnings.
“There is no principled basis to tax Olympic prizes any less than Nobel prizes, earnings or lottery winnings. If Congress wants to give Olympic winners more money, it should transparently give them more money rather than create an obscure tax expenditure to do exactly the same thing,” David Miller, a tax attorney with Cadwalader, Wickersham & Taft LLP in New York, told Salon.
So Rubio and Romney, are Nobel laureates any less deserving than Olympians of special treatment?
By: Alex Seitz-Wald, Salon, August 2, 2012
“Put Up Or Shut Up”: Mitt Romney Had The High Ground And Somehow Managed To Cede It
Sometimes, it’s possible to gain and lose the moral high ground very quickly.
When reporters shout intemperate questions at a candidate near Pilsudski Square in Warsaw, the candidate has gained the high ground. When the candidate’s aide tells the reporters, “Kiss my ass” and “Shove it,” the candidate has lost the high ground.
Similarly, Mitt Romney had the high ground when Senate Majority Leader Harry Reid (D-Nev.) made unfounded allegations about the Republican’s tax returns. And yet, he somehow managed to cede the high ground soon after.
For those unfamiliar with the story, Reid claimed he’d heard from a Bain Capital investor that Romney hadn’t paid income taxes for 10 years. Which investor? Reid didn’t say. Why should anyone take the claim seriously? Reid couldn’t say. He heard a rumor, and he’s passing it along.
Team Romney was furious and they had a point. The discourse can’t work this way — prominent officials need to be responsible when making attacks, and not just throw around second-hand innuendo, as if presidential candidates have a responsibility to respond to every unsupported rumor.
Romney had the high ground against a cheap shot. And then he gave it away.
“It’s time for Harry to put up or shut up,” Romney said on Sean Hannity’s radio show. […]
“Harry’s gonna have to describe who it is he spoke with because of course that’s totally and completely wrong,” Romney said Thursday in the radio interview. “It’s untrue, dishonest and inaccurate. It’s wrong. So I’m looking forward to have Harry reveal his sources and we’ll probably find out that it’s the White House.”
Is that so. Does Reid have any proof that Romney failed to pay taxes for 10 years? No, it’s just an unsubstantiated allegation that Reid carelessly pushed in the media. And does Romney have any proof that the White House is Reid’s secret source behind the attack? No, it’s just an unsubstantiated allegation that Romney carelessly pushed in the media. High ground, lost.
As for “put up or shut up,” is this really the phrase the guy who has been hiding his tax returns wants to use?
In recent weeks, Romney and his campaign spokespersons have claimed he always followed the law when paying his taxes and never paid an income tax rate of 0%. Romney also told a national television audience he’d be “happy to go back and look” to see how many years, if any, he paid a rate under 13.9%.
But these boasts are as dubious as Reid’s irresponsible claims — Romney has effectively told Americans we’re simply supposed to take his defense on faith. He could bolster his own rhetoric about his tax history with documented proof, but for reasons he can’t explain, Romney doesn’t want to.
The message: just take his word for it. And what about his willingness to happily go back and look at his paid income tax rates? Apparently, Romney intends to break this commitment just days after making it.
This is not how one keeps the moral high ground.
For Reid’s part, the Senate Majority Leader issued a statement last night that stands by the original allegations.
“There is a controversy because the Republican presidential nominee, Governor Mitt Romney, refuses to release his tax returns. As I said before, I was told by an extremely credible source that Romney has not paid taxes for ten years. People who make as much money as Mitt Romney have many tricks at their disposal to avoid paying taxes. We already know that Romney has exploited many of these loopholes, stashing his money in secret, overseas accounts in places like Switzerland and the Cayman Islands.
“Last weekend, Governor Romney promised that he would check his tax returns and let the American people know whether he ever paid a rate lower than 13.9 percent. One day later, his campaign raced to say he had no intention of putting out any further information.
“When it comes to answering the legitimate questions the American people have about whether he avoided paying his fair share in taxes or why he opened a Swiss bank account, Romney has shut up. But as a presidential candidate, it’s his obligation to put up, and release several years’ worth of tax returns just like nominees of both parties have done for decades.
“It’s clear Romney is hiding something, and the American people deserve to know what it is. Whatever Romney’s hiding probably speaks volumes about how he would approach issues that directly impact middle-class families, like tax reform and the economy. When you are running for president, you should be an open book.
“I understand Romney is concerned that many people, Democrats and Republicans, have been calling on him to release his tax returns. He has so far refused. There is only one thing he can do to clear this up, and that’s release his tax returns.”
The issue isn’t going away.
By: Steve Benen, The Maddow Blog, August 3, 2012
“Demented Dominion”: Jim DeMint Claims Romney Personally Pledged Support For Pushing Tea Party Agenda In First 100 Days
Senator Jim DeMint is all smiles. Ted Cruz’s upset victory in Texas’s Republican Senate primary means the conservative wing of the GOP conference, a bloc the second-term lawmaker from South Carolina shepherds, will almost certainly increase its ranks.
“This confirms that there is a new political reality,” DeMint tells National Review Online in an interview in his office. “The people who are winning, for the Senate particularly, are those who are telling Americans the truth.”
Political observers expect Cruz, should he win in November, to join DeMint’s coalition of tea-party favorites, which includes Senator Mike Lee of Utah, Senator Rand Paul of Kentucky, and Senator Ron Johnson of Wisconsin, among others.
DeMint agrees that Cruz would be an ally, but he emphasizes that he is looking for an ideological partner, not a political loyalist. Cruz’s rise has not whetted DeMint’s ambitions. “I have no intention of running for leader,” he says, when asked whether he will challenge Senator Mitch McConnell, the Republican leader. “I’ve been a leader ever since I walked in the Senate door. You don’t have to be elected to lead.”
Besides, DeMint says, McConnell sees the signals coming out of Texas, Indiana, and other states where tea-party candidateshave won. And as a savvy operator, McConnell is probably not looking to buck the newcomers.
“Elected leaders carry an important administrative function, but they are going to reflect the conference,” DeMint tells me. “If the conference is moving in the right direction, our leaders will move in the right direction.”
A week ago, DeMint traveled to Texas, where he stumped for Cruz alongside former vice-presidential nominee Sarah Palin. Standing with the youthful contender and Palin in Houston in front of thousands of voters was “pretty emotional,” DeMint recalls. “For so long, the party bosses controlled all the money and picked the candidates, pretty much deciding who they would run as a Republican.” These days, thanks to conservative activists and the rise of the Tea Party, “that has totally changed.”
Last summer, DeMint was one of the first conservative leaders to endorse Cruz, who was then an unknown. DeMint weighed in early to send a message to his fellow Republicans. “There is not enough urgency around here,” he says, commenting on Capitol Hill’s ongoing fiscal debate. “But when I got to know Ted, it became clear that he is ready to make the hard choices — and they’ll need to be made.”
DeMint already has a legislative plan ready for Cruz’s arrival. “If we get the [Senate] majority and the White House, we have got to pass a budget that sets up the structure, through reconciliation, to repeal Obamacare by killing the mandate,” he says. He also wants to “totally redo our tax code,” put “Medicare on a sustainable course,” and “deal with Social Security.” But should Republicans win then stumble, “it’d be betrayal to our country.”
“We need to do it in the first 100 days,” DeMint says. “[Mitt] Romney has told me, face to face, that he knows that he needs to get these things done right away. He is looking at this as a one-term proposition.”
DeMint acknowledges that reform faces many hurdles, but come January, the 60-year-old senator is optimistic that he’ll have a slew of tea-party senators ready to help. “Ted Cruz, Richard Mourdock, Deb Fischer, hopefully Mark Neumann, these folks will hopefully come in and bring a lot of closet conservatives in the Republican party out in the open,” DeMint chuckles. “Marco Rubio, Rand Paul, Mike Lee — they have the sense of urgency. But they are outnumbered.”
“If we get four or five more like them, it will embolden a lot of [Senate] Republicans who are conservative at heart, but got into a business-as-usual rut and don’t want to rock the boat,” DeMint says. “Now, if they see the boat rocking, I think it might help us.”
By: Robert Costa, National Review, August 2, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 