“Convoluted Excuse”: Romney Campaign Revives Misleading Claim About Kerry’s Tax Returns
When the it comes to the contentious topic of Mitt Romney’s tax returns, the Romney campaign has invoked precedent, defending their decision to release just two years worth of returns as the standard set by the campaigns of John McCain and John Kerry. The Romney campaign renewed this argument on Sunday.
In fact. Sen. Kerry (D-MA) had released 20 years of tax returns when he ran for president in 2004.
On Sunday, Romney senior adviser Ed Gillespie promised that Romney would release a total of two years worth of tax returns, following in the footsteps of McCain and Kerry.
“He is going to release them, Candy, we’ve made that clear,” Gillespie said to host Candy Crowley on CNN’s “State of the Union.” “And that’s the standard that Senator McCain, Republican nominee in the last election said was the relevant standard. It’s the standard that Senator John Kerry as the Democratic nominee said was the standard.”
In April, Romney himself held up Kerry as an example, telling CNBC that “John Kerry released two years of taxes.”
During the Republican primary, Romney released his 2010 tax returns and an estimate of his 2011 returns. Though Gillespie’s language was somewhat vague on Sunday, he seemed to be referring to fact that Romney would release his 2011 returns, bringing Romney’s total to two years of returns.
While McCain did release two years of returns, Kerry released more. As the Huffington Post and ThinkProgress previously reported, Kerry made it a habit to release his returns to the Massachusetts press during each of his Senate campaigns. The reason Kerry only released a few years worth of returns in 2004 is because his past returns had already been released.
Kerry spokesperson Jodi Seth chastised the Romney campaign for the false allegation.
“Months ago, the Romney team began making this false and convoluted excuse — the media investigated it and promptly reminded them that as a presidential candidate John Kerry had released twenty years of tax returns,” Seth said in a statement to TPM. “Still, months later they’re falling back on this same disproven excuse. In fact, if the Romney standard was the same as the Kerry standard for disclosure, the media would have the chance to review twenty years of Romney tax returns. Ed Gillespie should know better.”
By: Pema Levy, Talking Points Memo, July 15, 2012
“Not Squaring With Common Sense”: Romney Stayed Longer At Bain Beyond The Date He Said He Ceded Control
Government documents filed by Mitt Romney and Bain Capital say Romney remained chief executive and chairman of the firm three years beyond the date he said he ceded control, even creating five new investment partnerships during that time.
Romney has said he left Bain in 1999 to lead the winter Olympics in Salt Lake City, ending his role in the company. But public Securities and Exchange Commission documents filed later by Bain Capital state he remained the firm’s “sole stockholder, chairman of the board, chief executive officer, and president.”
Also, a Massachusetts financial disclosure form Romney filed in 2003 states that he still owned 100 percent of Bain Capital in 2002. And Romney’s state financial disclosure forms indicate he earned at least $100,000 as a Bain “executive” in 2001 and 2002, separate from investment earnings.
The timing of Romney’s departure from Bain is a key point of contention because he has said his resignation in February 1999 meant he was not responsible for Bain Capital companies that went bankrupt or laid off workers after that date.
Contradictions concerning the length of Romney’s tenure at Bain Capital add to the uncertainty and questions about his finances. Bain is the primary source of Romney’s wealth, which is estimated to be more than $25o million. But how his wealth has been invested, especially in a variety of Bain partnerships and other investment vehicles, remains difficult to decipher because of a lack of transparency.
The Obama campaign and other Democrats have raised questions about his unwillingness to release tax returns filed before 2010; his offshore assets, which include investment entities based in Bermuda and the Cayman Islands and a recently closed bank account in Switzerland; and a set of “blind trusts” that meet the Massachusetts standards for public officials but not the more rigorous bar set by the federal government.
Romney did not finalize a severance agreement with Bain until 2002, a 10-year deal with undisclosed terms that was retroactive to 1999. It expired in 2009.
Bain Capital and the campaign for the presumptive GOP nominee have suggested the SEC filings that show Romney as the man in charge during those additional three years have little meaning, and are the result of legal technicalities. The campaign declined to comment on the record. It pointed to a footnote in Romney’s most recent financial disclosure form, filed June 1 as a presidential candidate.
“Since February 11, 1999, Mr. Romney has not had any active role with any Bain Capital entity and has not been involved in the operations of any Bain Capital entity in any way,’’ according to the footnote. Romney made the same assertion on a financial disclosure form in 2007, during his first run for president.
Evidence emerged last week in a report by Mother Jones that Romney had maintained an ongoing leadership role at Bain beyond February 1999. Citing SEC documents, the magazine said Romney had control of Bain Capital’s shares in Stericycle, a medical waste company, in November 1999. Talking Points Memo reported this week on additional SEC filings listing Romney’s position with Bain in July 2000 and February 2001.
According to a statement issued by Bain Wednesday, “Mitt Romney retired from Bain Capital in February 1999. He has had no involvement in the management or investment activities of Bain Capital, or with any of its portfolio companies, since that time.”
A former SEC commissioner told the Globe that the SEC documents listing Romney as Bain’s chief executive between 1999 and 2002 cannot be dismissed so easily.
“You can’t say statements filed with the SEC are meaningless. This is a fact in an SEC filing,” said Roberta S. Karmel, now a professor at Brooklyn Law School.
“It doesn’t make a whole lot of sense to say he was technically in charge on paper but he had nothing to do with Bain’s operations,” Karmel continued. “Was he getting paid? He’s the sole stockholder. Are you telling me he owned the company but had no say in its investments?”
The Globe found nine SEC filings submitted by four different business entities after February 1999 that describe Romney as Bain Capital’s boss; some show him with managerial control over five Bain Capital entities that were formed in January 2002, according to records in Delaware, where they were incorporated.
A Romney campaign official, who requested anonymity to discuss the SEC filings, acknowledged that they “do not square with common sense.” But SEC regulations are complicated and quirky, the official argued, and Romney’s signature on some documents after his exit does not indicate active involvement in the firm.
A spokesman for the SEC said the commission could not comment on individual company filings or address the meaning of Romney’s name and title on the documents.
Karmel, the former SEC commissioner, said the contradictory statements could have legal implications in some instances.
“If someone invested with Bain Capital because they believed Mitt Romney was a great fund manager, and it turns out he wasn’t really doing anything, that could be considered a misrepresentation to the investor,’’ she said. “It’s a theory that could be used in a lawsuit against him.”
Romney first deployed the defense that he left the firm in February 1999 as a candidate for governor in 2002, when Democrat Shannon O’Brien featured a laid-off worker from a Kansas City steel mill that went bankrupt in 2001, after Bain Capital had reaped a handsome profit from its investment in the company. “Romney has taken responsibility for making the initial investment but has said he could not be blamed for management decisions at the company,” the Globe reported at the time.
Romney’s exit from Bain Capital also served as a ready-made rebuttal when in May President Obama’s reelection campaign began its public scrutiny of Romney’s business record with an ad focusing on former laborers at the same mill, GST Steel. But the SEC filings examined by the Globe indicate Romney remained at the helm of Bain Capital when the steel mill declared bankruptcy, in February 2001.
And financial disclosure documents Romney filed in Massachusetts show that he was paid as a Bain Capital executive while he directed the Olympics.
When he was named chief executive of the Salt Lake Organizing Committee on Feb. 11, 1999, Romney declared that he would not accept the job’s $285,000 annual salary until the Games were over and he had proven his turnaround worth.
Romney continued to draw a six-figure salary from Bain Capital, according to State Ethics Commission forms.
In Romney’s 2002 race for governor, he testified before the state Ballot Law Commission that his separation from Bain in 1999 had been a “leave of absence” and not a final departure.
By: Callum Borchers and Christopher Rowland, The Boston Globe, July 12, 2012
“It’s A Tax! It’s A Penalty!”: It’s A Stupid Argument Over Semantics
The press assumes people are stupid, thereby making them no less stupid.
Since not much campaign news happens over the July 4th holiday, Mitt Romney took the opportunity to change his campaign’s tune on whether the penalty in the Affordable Care Act for those who can afford health insurance but refuse to get it is a “tax.”
To review, the Supreme Court said the government has the authority under its taxing power to penalize those who refuse to get insurance, leading Republicans to cry, “Tax! Tax! Tax!” with all of their usual policy nuance and rhetorical subtlety. The only problem this poses for Romney is that calling it a tax means that Romney imposed a tax with his health-care plan in Massachusetts, which means admitting that Romney sinned against the tax gods. First his spokesman came out and said that no, it’s really just a penalty, but then Romney came out and said, well, if the Supreme Court said it’s a tax then it’s a tax, but it wasn’t a tax when I did it, because the Supreme Court didn’t call it that.
What does all this arguing over semantics tell us? It tells us that the press and public are both complicit in creating the hurricane of stupidity into which all presidential campaigns devolve.
As for the press, they could treat this as the inconsequential semantic quibble it is. The fact is it doesn’t matter whether you call it a “tax,” a “penalty,” a “freedom fee,” or a “Lenin levy.” It’s the same thing. And for the record, according to the Urban Institute, only 2 percent of Americans will be subject to the tax/penalty. And the whole idea is that most of them will be motivated by the tax/penalty to get health insurance, so the whole idea of the tax/penalty is that almost no one will end up paying it.
But the press has treated the question of what Mitt Romney will call the fee as though it matters. Because of some weird nostalgia, I get the dead-tree editions of both The New York Times and The Washington Post, and when I went outside into the 150-degree heat to get my papers this morning (note to self: get time machine, go back and convince George Washington to put the nation’s capital in someplace cold and rainy like Seattle), I found that both front pages had stories about this virtually meaningless issue.
That’s partly because it’s a slow news day, but also because the press knows just how dumb the electorate is. If all voters were at least reasonably informed about things, stuff like this would matter far less. No one who actually knows even the first thing about the Affordable Care Act could possibly have their opinion altered by what we decide to call the penalty for not carrying insurance. No one who thinks it’s a necessary measure will say, “Gee, now that people are calling it a ‘tax,’ that really changes how I think about it.” And if you didn’t like it before, you won’t like it any more or less if we put a different name on it.
But the press operates on the unspoken assumption that meaningful numbers of people actually will react that way. In other words, they assume the public is stupid, and that assumption leads them to make decisions that do nothing to make the public any less stupid. At the same time, if the public knew more about the actual consequences of the election, reporters would certainly pick up on it and alter their coverage accordingly. But since only 55 percent of the public even knows what the result of the most important Supreme Court decision on a policy issue in decades even was, reporters will stick to assuming the public is clueless, and they’ll largely be right.
By: Paul Waldman, Contributing Editor, The American Prospect, July 5, 2012
“Tying Themselves Into Knots”: Romney Adviser Contradicts A GOP Talking Point
Some Republicans knew that nominating a governor who had signed a healthcare reform law with an individual insurance mandate would be a problem. It would muddy their anti-Obamacare message, they warned, even if Mitt Romney could claim that he supports mandates only at the state level. Well, their fears were well-founded.
Consider the gaffe made by Eric Fehrnstrom, a top Romney campaign adviser, on MSNBC Monday morning. As I reported on Sunday night, Republicans and conservatives have tried to make the best of the Supreme Court’s decision to uphold the Affordable Care Act by saying that if it is justified under Congress’s taxing power, then it must be a tax increase, and a massive one at that.
But Romney, who signed a law that, just like the ACA, imposes a penalty on individuals who don’t buy insurance, does not like to admit that he raised taxes. (That’s why, as governor of Massachusetts, he mostly sought to increase revenue through new and higher user fees, including preposterously cruel ones, such as imposing a $10 fee for a certificate of blindness.)
These conflicting lines got crossed when Ferhnstrom said, “The governor disagreed with the ruling of the Court, he agreed with the dissent that was written by Justice Scalia, that very clearly said that the mandate was not a tax. The governor believes what we put in place in Massachusetts was a penalty and he disagrees with the Court’s ruling that the mandate was a tax.” This flies in the face of claims by Congressional Republicans and conservative talking heads such as Rush Limbaugh, who say that the ACA is a tax. Fehrnstrom is also contradicting his own candidate who admitted back in 2008 that the penalty for not buying insurance in Massachusetts is a kind of tax.
But Congressional Republican aides tell the Washington Post’s Greg Sargent that they can continue to make this argument even as the Romney campaign says the opposite. He writes:
You’d think the fact that the GOP presidential nominee’s campaign has now confirmed that Obamacare’s mandate is not a tax would undercut the use of this talking point by GOP Congressional officials, right?
You’d be wrong. One senior Congressional aide tells me that Republicans will continue to describe it in those terms. And a second senior GOP Congressional aide emails that there is no contradiction here.…
The Romney campaign and Republican Congressional officials alike both agree with Scalia’s argument that the mandate is not a tax in the sense that claiming it is a tax makes it Constitutional, even as Republican officials continue to argue that the mandate is a tax in the sense that SCOTUS said it was in the course of upholding the law.
It’s a clever argument, and a sort of technically consistent. But, as Sargent’s Post colleague Rachel Weiner points out, “That line of attack is more easily maintained by Republicans who never imposed any such mandate.” It’s irritating to see the GOP paying so little political penalty for their complete flip-flop on the individual mandate, but it’s satisfying to see that by nominating Romney they will at least tie themselves into knots over it.
By: Ben Adler, The Nation, July 2, 2012
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