“A Political Pickle”: Conservative Media Tries To Save Romney’s Campaign
Mitt Romney sure is lucky that major media outlets exist to serve his interests. After a video came out on Monday afternoon in which Romney denigrates the nearly half the country that did not pay federal income taxes last year as irresponsible and entitled, it seemed he was in quite a political pickle. The comments were unlikely to endear him to swing voters who perceive Romney as an out-of-touch elitist. But since Romney got the idea that 47 percent of the country are lazy Democratic moochers from movement conservatives, he could not repudiate his own remarks.
At first, Fox News had no idea how to respond. They simply ignored the story, even as it dominated coverage on other networks, all through their primetime lineup on Monday. Finally, when Romney gave a press conference after 10 pm, in which he admitted to having made poor word choices but not a substantive error, they showed it. On Tuesday, the Fox Business network hosted Romney for a softball interview with Neil Cavuto. Fox was determined to avoid covering the story except to help Romney burnish his self-defense. Alas, Romney himself did not have much of a defense, other than to say that he had simply been acknowledging that he will not win a landslide victory.
But then, Providence struck. On Tuesday afternoon the Drudge Report released an audio recording from 1998 in which Barack Obama says, “I actually believe in redistribution.” Drudge splashed the phrase in a banner headline across his front page as if it were earth shattering news. Since then, according to Huffington Post media reporter Michael Calderone, Fox has played the audio clip twenty-two times.
The Romney campaign immediately seized on the clip as a way of shifting their defense of Romney’s unappealing rhetoric into more friendly terrain. Speaking to Cavuto, Romney said:
There is a tape that just came out today where the president is saying he likes redistribution. I disagree. I think a society based upon a government-centered nation where government plays a larger and larger role, redistributes money, that’s the wrong course for America…. The right course for America is to create growth, create wealth, not to redistribute wealth.
Romney’s campaign sent out the quote as part of a press release. They followed up shortly with another press release that lists their usual litany of depressing economic indicators as proof that “Obama’s redistribution plan…didn’t work.” What is missing is any proof, besides a fourteen-year-old quote, that Obama actually pursued a redistribution plan once in office.
By Wednesday, the Romney campaign had regained its footing. Reporters were being inundated with statements using the redistribution quote as a hook for all their usual talking points. For example, they released a statement headlined, “Obama’s Redistribution Didn’t Work For Small Businesses.” “Mitt Romney understands that opportunity and free enterprise create jobs and grow our nation’s small businesses—not government redistribution,” said Romney campaign spokesperson Andrea Saul. The campaign also worked the phrase into their stump speeches. Paul Ryan told a Virginia audience that, Obama is “going to try and distract and divide this country to win by default.” Then he asserted:
President Obama said that he believes in redistribution. Mitt Romney and I are not running to redistribute the wealth. Mitt Romney and I are running to help Americans create wealth. Efforts that promote hard work and personal responsibility over government dependency are what have made this economy the envy of the world.
As Slates Dave Weigel points out, it is ridiculous to blame Obama for distracting and dividing the country, and then attack Obama for something he said fourteen years ago.
Conservative pundits, though, are cheering on the Romney/Ryan campaign’s silliness. After Romney’s appearance on Cavuto, Fox panelist and Weekly Standard writer Stephen Hayes said of the attack on Obama’s quote, “[It’s] good, [he should] make the argument. Going back to 1998 shows the president has believed this for a long time.” That’s a specious argument. If you go back to 1998 and look at anything Mitt Romney said, it may be diametrically opposed to what he believes today. Generally, the older the quote, the less relevant it is. Certainly that’s the standard Hayes would use if it were Romney who long ago said something Hayes considers damaging.
More importantly, Ryan’s statement creates two false dichotomies. Contra Ryan, redistribution can promote hard work instead of government dependency. A great example is the Earned Income Tax Credit, which is a wage subsidy for low-earning households. The purpose is to make menial jobs more financially attractive relative to being unemployed and eligible for welfare, food stamps and Medicaid. It was created with bipartisan support, and by all accounts it has worked well. It also happens to be one reason that so many low-income families do not pay any income taxes, the very state of affairs that Romney decried.
It is also wrong to assume that any wealth redistribution is the opposite of creating wealth. Reasonable people can differ on the optimal amount of redistribution to generate economic growth. But a glance at countries such as Denmark and Germany shows that high marginal tax rates, with the revenue going to strong educational and healthcare systems can develop a healthy, educated and therefore globally attractive workforce. That, in turn, can yield strong rates of economic growth.
The underlying complaint against Obama is bogus anyway. Drudge misleadingly cut the quote to create a false impression. As Jonathan Chait explains in New York magazine, if you read the full quote, you see that Obama is actually expressing a very moderate, neoliberal attitude. Obama actually said that some of the backlash against government has been deserved. To revive faith in collective action, Obama argues, government programs must be more efficient. “We do have to be innovative in thinking, what are the delivery systems that are actually effective.… because I actually believe in redistribution, at least at a certain level to make sure that everybody’s got a shot,” said Obama. This is not radical socialism. But then, neither is the Affordable Care Act, even though conservatives have labeled it as such. If Romney’s incompetent campaign did not have the conservative media to invent these myths, they would truly be lost.
By: Ben Adler, The Nation, September 19, 2012
“Talking To Themselves”: Republicans Are Barricaded Within A Self-Reinforcing Informational Bunker
Mitt Romney and his Republican allies thought they had a way to diffuse the fallout from his now-legendary secretly-recorded fundraising video when somebody unearthed a tape of President Obama saying he favored “redistribution.” Sure, the tape is 14 years old. And sure, as Jamelle pointed out yesterday, pretty much everybody favors redistribution in some form, even Mitt Romney (if he didn’t, he’d be advocating removing all progressivity from the tax code). Romney is bringing it up whenever he can, as is Paul Ryan, and the Obama tape has been shown on Fox News approximately three million times in the last 24 hours. Are they a little desperate? Of course. But the fact that they think such a thing will have even the remotest impact on what people think of Barack Obama shows that they are existing within an ideological cocoon that makes it almost impossible for them to figure out what they’re doing wrong.
It isn’t just that the tape is 14 years old (and man, has Obama aged in that time), or that what he’s saying is pretty innocuous. It’s that they think there’s any statement of Obama’s that they can unearth that will change how voters think of him. As though some significant number of voters are going to say, “I’ve been watching this guy on television every day for the last four years, but this 14-year-old videotape that contains the word “redistribution” has finally made me realize that he’s a dangerous socialist. I was undecided before, but now you’ve got my vote, Mitt.”
A couple of years ago, bloggers had a discussion about “epistemic closure,” the tendency of many on the right to barricade themselves within a self-reinforcing informational bunker. The danger is that you wind up with a skewed view not only of the facts but of what other people believe as well. This can be deadly for a campaign, whose goal, after all, is to persuade people, some of whom don’t already see the world as they do. And it sure seems like Romney and his people are falling prey to it. The temptation is strong, because everyone who works on the campaign is a partisan who was probably getting much of their information from partisan news sources before they got there.
So when Romney comes out and says triumphantly “I don’t believe in redistribution!” he probably thinks voters will respond with, “Me neither, Mitt! Screw those freeloaders! Viva job creators!” But the more likely response among people who aren’t already committed Republicans is that once again, this rich guy who disdains everyone who isn’t as rich as him is saying, “I got mine, Jack, and the rest of you can go to hell.” In other words, he’s not countering the attacks the Democrats are making on him, he’s reinforcing them.
By: Paul Waldman, Contributing Editor, The American Prospect, September 20, 2012
“Tax-Payer Financed Capitalism”: The Great American Tax Debate Misses The Point
Casting the tax debate as an argument in which liberals want to use the tax system to reduce income inequality after the fact by taxing the wealthy at higher rates than middle and lower income classes, while conservatives favor flat taxes that tax rich and poor at the same rate, misses the main point. Deregulation of the financial system over the last 35 years and tax preferences that benefit corporations and wealthy individuals have done much to increase the before-tax incomes of the top 1 percent. An army of tax accountants, many of them recruited from the IRS, has figured out how to push the envelope on tax avoidance for the big businesses and wealthy individuals that can afford their high-priced services. For these folks, tax accounting has been transformed from a service that makes sure that required taxes are paid to a profit center that manipulates the tax code to generate huge returns at the expense of the tax-paying public. Increasingly what we see in the United States is the growing importance of tax-payer financed capitalism.
There is no economic reason that the debt taken on by corporations should be treated differently in the tax code from the equity invested by shareholders, but it is. Corporations get to deduct the interest paid on debt from their earnings, thus reducing the corporate income tax they have to pay. The tax code also provides an incentive for private equity firms, which plan to hold companies they acquire for their portfolios for just a few years, to load these companies with debt. In good times, this greatly increases the returns to investors. In poor economic conditions, this greatly increases the risk of financial distress and even bankruptcy, and imposes great costs on workers, creditors and communities. For investors with a time horizon measured in years and not decades, this is a risk worth taking for the promise of higher returns.
Tax preferences mean that income from owning stock is taxed at a far lower rate than income from working—a point made by Warren Buffet who famously pointed out that his secretary pays a higher tax rate than he does. The fiction that bonuses earned by partners in private equity and hedge fund firms is ‘carried interest’ that should be taxed at the lower rate on earnings from owning stock, rather than at the higher rate on ordinary income that ordinary workers and managers pay on their bonuses, boosts the income and wealth of these already wealthy economic players.
The use of aggressive tax avoidance schemes is rampant among big businesses and wealthy individuals. Setting up a subsidiary that lives in a file drawer in a tax haven and owns the company’s intellectual property and collects the royalties on it, or that owns the loans the company has made and collects the interest, allows financial institutions, pharmaceutical companies, and IT companies to park their profits outside the United States and defer taxes on this income indefinitely while waiting for a tax holiday to bring their profits home. Setting up so-called blocker corporations in offshore tax havens to launder taxable income for foreigners and pension funds, and turn it into nontaxable income is another favorite scheme.
Tax preferences and tax loop holes enrich the already wealthy and increase their incomes while starving the country of much needed tax revenue. The meaning of this rise in tax-payer financed capitalism is that the rest of us must either pay higher taxes or do without necessary services.
By: Eileen Appelbaum, U. S. News and World Report, September 19, 2012
“Mitt’s Moochers”: The Dangerous Lie His Funders Love To Hear
Mitt Romney got some unwanted attention early this year when he flatly stated, “I’m not concerned about the very poor.” When challenged on this remark he assured Americans that the safety net for the very poor was a given, safe from any budget and tax code tinkering in Washington. This was a sinister explanation since Romney’s tax and spending plan — or as much of it as can be deciphered — calls for further tax cuts for the wealthy at the expense of social services that he claimed were safe.
Now, we see that it’s not just the “very poor” who don’t merit Romney’s “concern.” At the now-infamous $50,000-a-plate fundraiser in Florida, Romney wrote off the concerns of the 47 percent of Americans who don’t owe federal income taxes, saying that half of Americans are “dependent on government,” “believe that they are the victims,” and have the gall to “believe that they are entitled to health care, to food, to housing, to you name it.”
That 47 percent includes families and individuals with low incomes — about 23 percent of taxpayers, according to the Tax Policy Center. It also includes those for whom tax credits for children and working families have eliminated tax burdens — about 7 percent. It also includes seniors who have left the workforce — about 10 percent. Over half of the 47 percent pay federal payroll taxes. All are subject to state and local taxes, many of which, like sales taxes, are more regressive than federal taxes. (And if we ever see more Romney tax returns, we may find some years when the Romney’s were in that entitled 47 percent.)
As conservative writer Reihan Salam points out in the National Review, policies like the Child Tax Credit and the Earned Income Tax Credit — responsible for much of this tax relief for working families — were conservative ideas meant to reduce the “dependency” that Romney so reviles, by “encourag[ing] people get on the first rungs of the jobs ladder, and to become less dependent over time.”
Romney was telling the well-heeled guests at this fundraising dinner that these people — middle-class parents, low-income workers, the unemployed, the elderly — aren’t interested in working hard despite the fact that most of them report to the IRS each year that they work quite a lot. This isn’t just tin-eared politics. Like Romney’s comments on the “very poor,” it represents a profound misunderstanding of how Americans’ lives work and how his policies would affect those lives.
But even talking about the “47 percent versus the 53 percent” belies the fact that nobody in America is free from at least some government “dependency.” We all rely on roads, hospitals, schools, firefighters, police officers, and our military — even Mitt Romney and his $50,000-a-plate friends. Romney himself has relied on the government’s safety net for businesses, securing a federal bailout for Bain & Company. Nobody succeeds without some help from a stable, functional government. That’s what President Obama was saying when his “you didn’t build that” comments were taken out of context.
Romney was clearly telling his funders a fantasy story that they love to hear. But that story is a lie, and we shouldn’t accept it from someone who could become a president representing 100 percent of the American people.
By: Michael B. Keegan, The Hufffington Post Blog, September 19, 2012
“It’s The 1 Percent, Stupid”: The Case Against Pitting The 47 Percent Vs The 99 Percent
The news of Mitt Romney’s remarks at a closed-door fundraiser that were leaked by Mother Jones has been dominating since it broke yesterday. The scandalous content appears plentiful enough to keep pundits and political junkies glued to Twitter for the remainder of the cycle. And let’s be clear: between Romney’s callous “wait-and see” approach to the Middle East peace process, his instrumental view of Latino voters and his parasitic characterization of those who are too poor to pay income tax, he painted a devastating picture of himself as a leader and a person.
The line from the video that is the source of the most fascination is when Romney claims that he cares not at all for the 47 percent of Americans who pay no income taxes and freeload off the government, since they are sure to be Obama voters anyway. The statement is a window into the cynical and meanspirited worldview that would guide this candidate’s policies and priorities were he to win in November. This alone should give every voter pause, regardless of partisan affiliation.
But there’s a reason right-wing blogger and CNN contributor Erick Erickson’s first tweet after seeing the leaked tapes expressed joy:
Dammit! I’m just now seeing these Romney secret videos. We need that guy on the campaign trail!
A year ago this week, a small band of committed activists achieved a goal that had eluded the established political organizations and the progressive nonprofit sector: they successfully shifted the national conversation away from one about cuts and austerity to one about our nation’s yawning economic inequality. “The 99 percent versus the 1 percent” became the rallying cry for an reinvigorated movement, and Occupy Wall Street ushered in a new era where political fantasy gave way to economic reality in shaping the public discourse.
While the glory days of Occupy faded with winter, the movement left an indelible imprint on our collective consciousness: despite partisan claims to the contrary, most residents in this country have far more in common than we have that drives us apart.
(A big shout out to those committed activists who retook Zuccotti Park for the anniversary of Occupy. For more on this, see Nation reporting here.)
Panicked by the need to respond to the growing sense of outrage about a rigged system built by some of their architects, right-wing leaders cast about for a way to change the conversation back to their own advantage. It was this desire that drove Erick Erickson to start the “53 percent movement.” In launching his campaign, Erickson called the protesters “whiners,” and sought a new social division—one that pitted the 53 percent of Americans who pay federal income taxes against those he claimed were “free-loading” activists. Despite his entreaties and the cheerleading of the right-wing echo chamber, their manufactured meme could not compete with the much more resonant, organic and accurate 99 percent rallying cry.
Still, the mathematical and rhetorical trick has remained in the back pocket of a GOP desperate to change the subject back to their hobbyhorse of the deficit. They see their opportunity in the resurrection of the 47 percent argument, despite how the moment presented itself.
There is now, as there was then, much to take issue with in the 47 percent statistic. Those 47 percent of Americans live below the poverty line or are unemployed or are elderly, many of whom have paid taxes their entire life. Those 47 percent also almost certainly pay some form of taxes: be it payroll taxes, income taxes, state taxes, property tax or sales tax. And there is emerging an even more in-the-weeds debate about whether or not these 47 percent are actually more likely to vote for Romney or Obama, an answer we’ll never find because it’s different depending on how you count. It is tempting to jump on these arguments—passionate as we all are for getting the ever-dwindling facts out to our fellow Americans.
But doing so will cede the home field advantage to the GOP. This certainty accounts for Stuart Varney’s crowing that it’s about time we get back to talking about how “half of the population is living off of the other half” during Fox and Friends’s morning coverage of the tapes. It is the same reason that Brian Kilmeade on the same network stated unequivocally that Romney should be stumping on this issue all the time. If we’re spending time talking about what half the population does or does not get or do, we inevitably draw attention away from the fact that the GOP is running a candidate whose entire life experience and political vision is shaped by being part of the top tiny fraction of this country’s wealth at a time where most Americans are struggling to get by.
So, while the campaign can’t be happy about the GOP-patented guerrilla tactics now coming back to bite one of their own, early pronouncements that the election was won last night are premature and irresponsible. If Romney’s camp can weather this storm and find themselves washed up on the beaches of the 47 percent versus the 99 percent, they might have a chance of not getting voted off the Island. This election—and more important, the fight for economic opportunity—remains about the genuine struggles and solutions that benefit all but the most privileged in this country. Romney’s dismissal of half of those folks doesn’t change that fact.
A full timeline of the right’s campaign to move the 47 percent meme is provided here by Media Matters for America.
By: Ilyse Hogue, The Nation, September 18, 2012
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