“Twisted Minds, Politics Edition”: Mitt Romney’s Remarkable Work of Staggering Dishonesty
As Greg Sargent, Steve Benen, and others have amply demonstrated, Mitt Romney has a problem with the truth. Throughout his campaign, he has openly lied about his previous positions, his beliefs, and the records of his opponents, Republican or otherwise. In a speech today on economic freedom at the University of Chicago, Romney continued the trend, building a mostly substanceless case against President Obama on the basis of half-truths and falsehoods. You can read the whole speech if you’d like. For now, I’d like to highlight a few passages that sum up Romney’s case against Obama in fact-free aplomb. First, there’s this:
For three years, President Obama has expanded government instead of empowering the American people. He’s put us deeper in debt. He’s slowed the recovery and harmed our economy.
There are a few things missing from this account. First is the fact that the Great Recession began in 2008 and was already on its way to reach its nadir by the time Obama took office. By the time the stimulus began to take effect, the economy was well on its way to the bottom, and independent analyses agree that the administration’s policies kept the country out of a depression, even if it wasn’t enough to juice the recovery.
What’s more, neither the stimulus nor the administration’s later policies were responsible for the deficit explosion of 2009 and 2010. The recession—and the drastically reduced tax revenues it produced—was responsible for a good portion of the deficit. The rest was the result of Bush-era policies like tax cuts and the wars in Iraq and Afghanistan. As economist Mark Thomas points out, government spending under Obama has increased at a lower rate than under Reagan, George H.W. Bush, or George W. Bush. The only president to have a lower rate of spending was, you guessed it, Bill Clinton.
On to the next passage, which is brazen in its disregard for the truth:
President Obama has proposed raising the marginal tax rate from 35% to 40%. He has proposed special breaks for his favorite industries, further increases for businesses he dislikes, and endless credits and subsidies intended to shape our behavior in this society. […]
If you invest your savings in a new business and are one of the fortunate few who see success – and make a profit – President Obama wants to take 40% of it.
President Obama wants to restore marginal tax rates on the rich to where they were before George W. Bush took office. While the American public might not understand marginal tax rates, it’s almost certainly true that Mitt Romney has a handle on the concept. Which means that the former Massachusetts governor is lying to his audience when he says that “President Obama wants to take 40 percent” of your income. An increase in marginal tax rates, or even a millionaire’s surtax, would only apply to income over a certain point. If the Bush tax cuts were repealed, and the top marginal rate went up to Clinton-era levels for income over $250,000, then it’s only the $250,001st dollar that would be affected.
Beyond that, the claim that Obama has proposed tax increases for “businesses he dislikes” only makes sense if you include policies designed to lower rates and broaden the tax base. “You could portray the president’s call to remove subsidies for oil and gas companies that way, and also his call to end the carried-interest loophole, which benefits hedge funds and investment companies,” says Michael Linden, director for tax and budget policy at the Center for American Progress. You might disagree with those policies, but Obama isn’t playing favoritism.
On that note, here is how Romney concludes his speech:
But, now, after spending three years attacking business, President Obama hopes to erase his record with a speech. In a recent address, he said that, “We are inventors. We are builders. We are makers of things. We are Thomas Edison. We are the Wright Brothers. We are Bill Gates. We are Steve Jobs.”
The only thing that’s true here are the quotes from Obama. The rest? False. Here are some excerpts from speeches the president has given over the last three years (all emphasis mine).
All across America, even today, on a Saturday, millions of Americans are hard at work. … They are the more than half of all Americans who work at a small business or own a small business. And they embody the spirit of possibility, the relentless work ethic, and the hope for something better that is at the heart of the American Dream.
Government can’t guarantee success, but it can knock down barriers that keep entrepreneurs from opening or expanding. […] This is as American as apple pie. Small businesses are the backbone of our economy. They are central to our identity as a nation. They are going to lead this recovery. The folks standing beside me are going to lead this recovery.
As part of the bipartisan tax deal we negotiated, with the support of the Chamber, businesses can immediately expense 100 percent of their capital investments. And as all of you know, it’s investments made now that will pay off as the economy rebounds. And as you hire, you know that more Americans working will mean more sales for your companies. It will mean more demand for your products and services. It will mean higher profits for your companies. We can create a virtuous circle.
[I]f you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making your products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers.
The point is simply to say that the only Barack Obama who has spent his presidency criticizing business is the Barack Obama that exists in Mitt Romney’s head. Indeed, the same goes for this speech, and his entire campaign—Romney is running against policies that haven’t happened and an Obama that doesn’t exist. Exaggeration is normal in politics, but this goes beyond garden-variety embellishment—Romney’s speech, along with much of his rhetoric, is a remarkable work of staggering dishonesty. So far, he hasn’t really suffered for it.
By: Jamie Bouie, The American Prospect, March 19. 2012
Four Fiscal Phonies: GOP “Irresponsible Deficit Hysteria” Presidential Candidates
Mitt Romney is very concerned about budget deficits. Or at least that’s what he says; he likes to warn that President Obama’s deficits are leading us toward a “Greece-style collapse.”
So why is Mr. Romney offering a budget proposal that would lead to much larger debt and deficits than the corresponding proposal from the Obama administration?
Of course, Mr. Romney isn’t alone in his hypocrisy. In fact, all four significant Republican presidential candidates still standing are fiscal phonies. They issue apocalyptic warnings about the dangers of government debt and, in the name of deficit reduction, demand savage cuts in programs that protect the middle class and the poor. But then they propose squandering all the money thereby saved — and much, much more — on tax cuts for the rich.
And nobody should be surprised. It has been obvious all along, to anyone paying attention, that the politicians shouting loudest about deficits are actually using deficit hysteria as a cover story for their real agenda, which is top-down class warfare. To put it in Romneyesque terms, it’s all about finding an excuse to slash programs that help people who like to watch Nascar events, even while lavishing tax cuts on people who like to own Nascar teams.
O.K., let’s talk about the numbers.
The nonpartisan Committee for a Responsible Federal Budget recently published an overview of the budget proposals of the four “major” Republican candidates and, in a separate report, examined the latest Obama budget. I am not, by the way, a big fan of the committee’s general role in our policy discourse; I think it has been pushing premature deficit reduction and diverting attention from the more immediately urgent task of reducing unemployment. But the group is honest and technically competent, so its evaluation provides a very useful reference point.
And here’s what it tells us: According to an “intermediate debt scenario,” the budget proposals of Newt Gingrich, Rick Santorum, and Mitt Romney would all lead to much higher debt a decade from now than the proposals in the 2013 Obama budget. Ron Paul would do better, roughly matching Mr. Obama. But if you look at the details, it turns out that Mr. Paul is assuming trillions of dollars in unspecified and implausible spending cuts. So, in the end, he’s really a spendthrift, too.
Is there any way to make the G.O.P. proposals seem fiscally responsible? Well, no — not unless you believe in magic. Sure enough, voodoo economics is making a big comeback, with Mr. Romney, in particular, asserting that his tax cuts wouldn’t actually explode the deficit because they would promote faster economic growth and this would raise revenue.
And you might find this plausible if you spent the past two decades sleeping in a cave somewhere. If you didn’t, you probably remember that the same people now telling us what great things tax cuts would do for growth assured us that Bill Clinton’s tax increase in 1993 would lead to economic disaster, while George W. Bush’s tax cuts in 2001 would create vast prosperity. Somehow, neither of those predictions worked out.
So the Republicans screaming about the evils of deficits would not, in fact, reduce the deficit — and, in fact, would do the opposite. What, then, would their policies accomplish? The answer is that they would achieve a major redistribution of income away from working-class Americans toward the very, very rich.
Another nonpartisan group, the Tax Policy Center, has analyzed Mr. Romney’s tax proposal. It found that, compared with current policy, the proposal would actually raise taxes on the poorest 20 percent of Americans, while imposing drastic cuts in programs like Medicaid that provide a safety net for the less fortunate. (Although right-wingers like to portray Medicaid as a giveaway to the lazy, the bulk of its money goes to children, disabled, and the elderly.)
But the richest 1 percent would receive large tax cuts — and the richest 0.1 percent would do even better, with the average member of this elite group paying $1.1 million a year less in taxes than he or she would if the high-end Bush tax cuts are allowed to expire.
There’s one more thing you should know about the Republican proposals: Not only are they fiscally irresponsible and tilted heavily against working Americans, they’re also terrible policy for a nation suffering from a depressed economy in the short run even as it faces long-run budget problems.
Put it this way: Are you worried about a “Greek-style collapse”? Well, these plans would slash spending in the near term, emulating Europe’s catastrophic austerity, even while locking in budget-busting tax cuts for the future.
The question now is whether someone offering this toxic combination of irresponsibility, class warfare, and hypocrisy can actually be elected president.
By: Paul Krugman, Op-Ed Columnist, The New York Times, March 1, 2012
“Deficit-Exploding”: Mitt Romney’s Fantasy Tax Cuts
Let’s take a trip back to 1992. Then-Gov. Bill Clinton, in his campaign manifesto, said: “Middle-class taxpayers will have a choice between a children’s tax credit or a significant reduction in their income tax rate.”
By February 1993, President Clinton’s position on a middle class tax cut had morphed into this:
Before I ask the middle class to pay, I’m going to ask the wealthiest Americans and companies, who made money in the ’80s and had their taxes cut, to pay their fair share. And I’m going to cut more government spending. But I cannot tell you that I won’t ask you to make any contribution to the changes we have to make.
To justify the reversal, Clinton cited a budget deficit that was $50 billion larger than what he thought it was before the election. Fast forward to today.
Former Gov. Mitt Romney has pledged to cut income tax rates by 20 percent for every American, not just the middle class. He has also embraced Rep. Paul Ryan’s Medicare reform plan, which would convert the program from a defined benefit to a defined contribution scheme.
Romney emerges from Michigan committed not only to the Ryan plan, but also to a 20 percent cut in tax rates, above and beyond his prior commitment to making the Bush tax cuts permanent. …That’s not the race I’m sure Romney intended to run. But it will be hard to change now.
Yes, hard to change now—and impossible to realize once in office.
Such deficit-exploding tax cuts will never become law. Romney—a sane man—already knows this. There will be no need for Clintonian “evolution.” And, especially if the Senate remains under Democratic control, the odds for which increased with Sen. Olympia Snowe’s surprise retirement announcement, the Ryan plan stands little chance of even reaching President Romney’s desk.
To review: Mitt Romney has set himself up to (ahem) severely disappoint conservatives who already suspect his ideological convictions.
As I see it, Romney could blunt this backlash-in-the-making by picking up the pieces of last year’s aborted Grand Bargain. There is a solid left-right consensus on raising badly-needed federal revenue by reigning in the billions we spend through the tax code. Pair reduction in tax expenditures with modest entitlement reforms and you can see at least the lineaments of restored budget sanity.
This is probably the best outcome our political system can manage these days.
The question is, as president, would Mitt Romney be able to sell it to conservatives who don’t trust him?
By: Scott Galupo, U. S. News and World Report, February 29, 2012
Mitt Romney: “Scourge Of The One Percent”
When Mitt Romney unveiled his new tax plan cutting taxes across the board by 20 percent in Arizona today, he pledged that he would “make sure the top one percent keeps paying the current share they’re paying or more.”
This illustrates how much the landscape has shifted in the wake of Occupy Wall Street and the broader public’s rising preoccupation with inquality. After all, only last month, Romney attacked Obama as divisive for using the 99-versus-one-percent language, which he termed as “entirely inconsistent with the concept of one nation under God.”
That aside, his rhetoric raises a question: What does his new plan actually mean for the wealthy?
I just got off the phone with Bob McIntyre, the president of the liberal-leaning-but-nonpartisan Citizens for Tax Justice. He says the upshot for the rich is a huge tax cut that’s paid for by cuts to Social Security, Medicare and Medicaid. Total taxes cut in the plan: $10 trillion over 10 years, by his calculation.
The central feature of Romney’s new plan is an across-the-board 20 percent tax cut — on top of continuing the Bush tax cuts, by McIntyre’s reading. For the top earners, that means the tax rate drops to 28 percent. The plan also cuts the corporate tax rate from 35 percent to 25 percent, repeals the estate tax, and maintains the current tax rate of 15 percent on income from capital gains.
Bottom line?
“The wealthy will pay far less in taxes than they do now, including a wealthy person named Mitt Romney,” McIntyre says.
McIntyre notes that the plan does allow for the closing of some loopholes enjoyed by the wealthy, but said we need more detail to see whether they will constitute anything meaningful.
The plan appears to be paid for by unspecified cuts to Social Security and Medicare. On the latter program, Romney’s plan envisions a “a premium support system that gives each senior the freedom to choose among competing private plans and traditional fee-for-service Medicare.” That appears to be a reference to the Ryan-Wyden Medicare plan.
So how does this all square with Romney’s claim above about the one percent? McIntyre says the key is that Romney said the one percent’s “share” would not drop. He didn’t say the amount the one percent pays wouldn’t drop.
“If you reduce the whole thing by 20 percent then they can go down by 20 percent and still pay the same share,” McIntyre explains.
So there you have it.
By: Greg Sargent, The Washington Post Plum Line, February 22, 2012
“Primary Pander Mode”: Severely Conservative Mitt To Rollout New Tax Plan
What do Republican politicians do when they need to pick it up a step? You’ve got it: they propose more tax cuts.
So it’s no great surprise that Mitt Romney is signaling that he’s coming out with a new, “bold” tax proposal to coincide with his stretch drive towards primaries next week in Michigan and Arizona, not to mention the upcoming Super Tuesday (March 6).
The chosen herald for this news appears to be that intrepid supply-sider, Larry Kudlow of National Review, who reports, with barely restrained excitement, that Mitt’s new tax cuts will be “across-the-board with supply-side incentives from rate reduction, and that it will help small-business owners as well as everyone else.”
You may wonder why Romney didn’t find space for this stuff in his previously released 159-page economic plan. Looking at that beast for the first time in a while, it already includes making the Bush tax cuts permanent; abolishing estate taxes; a partial abolition of taxes on interest, dividends and capital gains; and lower corporate tax rates. Ah, but there it is, the placeholder for new goodies: “a conservative overhaul of the tax system over the long term that includes lower, flatter rates on a broader base.”
Now lots of folks in both parties think it might be possible to have lower income tax rates if the lost revenues are offset by aggressive elimination of tax expenditures, from fossil fuel subsidies to the mortgage interest deduction, all of them zealously defended by some powerful lobby. It will be interesting to see if Romney moves in that direction, or instead (as one might guess from Kudlow’s enthusiasm) relies on the old voodoo magic of supply-side economics, and pretends lower rates will pay for themselves. Since he’s in full primary pander mode, it’s unlikely he’ll propose anything a signfiicant number of GOP primary voters will find objectionable.
By: Ed Kilgore, Washington Monthly Political Animal, February 21, 2012
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