“Swiss Coffers”: What Does Mitt Romney Have To Hide?
The Democrats are putting all their emphasis on touting the Buffett Rule ahead of a Senate vote for next week to coincide with Tax Day. The push is ostensibly an effort to twist the arm of a few of the more moderate Republicans—say the two Maine Senators or running for reelection in Democratic territory Scott Brown—under the hope that they’ll fear public backlash if they vote down the measure, a policy favored by over half of the country. However even if they peel off a few Republicans there is little hope that the bill would make any progress in the GOP-controlled House. Instead, as a conference call hosted by the Obama campaign Monday afternoon made clear, the push is an effort to focus attention on Mitt Romney’s wealth as a viability as the Republican nomination contest begins to come to a conclusion.
Senate Majority Whip Dick Durbin and Wisconsin Representative Tammy Baldwin joined Obama campaign manager Jim Messina on the call. Messina used most of his time talking with the reporters to attack Romney’s refusal to release his tax returns beyond the past two years. “Why is it ok to give John McCain 23 years and the American public only two? It doesn’t make sense, he can’t justify it, and he should release it,” Messina said, referring to the records Romney provided to McCain in 2008 while he was being vetted as a possible VP candidate.
“Romney is the beneficiary of a broken tax system and he wants to keep it that way,” Messina said, hinting at Romney’s 13.9 percent rate for his 2010 taxes. “He wants a system in which firefighters, cops, teachers and middle class Americans all pay a higher tax rate than he does. We think that’s wrong.”
Durbin went a step further, questioning why Romney keeps some of his money in a Swiss bank account. “It is impossible for him to explain or defend owning a Swiss bank account,” Durbin said. “I asked Warren Buffett at a meeting we had recently, ‘have you ever had a Swiss bank account?’ He said, ‘No, there are plenty of good banks in the United States.’ I started asking people ‘why do you have a Swiss bank account?’ There are two reasonable explanations. Number one: you believe the Swiss Frank is a stronger currency than the United States dollar, and that apparently is the decision the Romney family made during the Bush presidency. And secondly, you want to conceal it, you want to hide something.” Durbin didn’t quite accuse Romney of impropriety, but the implication was clear that the Senate Majority Whip believes the Republican presidential candidate is hiding information that could damage his political campaigns.
By: Patrick Caldwell, The American Prospect, April 9, 2012
“Corporations Are People”: How Everyone Else Pays for Big Business’s Tax Breaks
Some politicians might believe that “corporations are people,” as former Gov. Mitt Romney declared last year.
At tax time, however, corporations enjoy better treatment than ordinary folks. While millions of individual Americans file last-minute income tax returns this month, some major corporations won’t pay a dime despite reaping record profits.
From 2008 to 2010, the 280 most profitable U.S. corporations sheltered half of their profits from taxes, thanks to tax subsidies totaling nearly $224 billion, according to a 2011 analysis by Citizens for Tax Justice. A dozen large companies, including Exxon-Mobil, Boeing, and General Electric, reaped $175 billion in profits, but their combined tax rate was negative 1.4 percent, thanks to $64 billion in subsidies from oil depletion allowances, write-offs from overseas profits, and other loopholes, according to the study.
These subsidies didn’t just come about by accident—at least 30 Fortune 500 firms pay their lobbyists more than they pay in taxes. Most small businesses can’t afford lobbyists, so it’s no surprise that the benefits of tax loopholes flow mainly to Wall Street, not Main Street.
Thanks to these loopholes, probably no major company pays the full federal corporate tax rate of 35 percent. The highest three-year average effective rate paid by any of the 12 large corporations in the Citizens for Tax Justice study was 14.2 percent—less than many middle class families.
That’s the kind of sweetheart deal most taxpayers—and most small businesses—can only dream about. We do, however, get to pick up the tab for these costly tax breaks. For starters, when corporations shirk billions of dollars in federal taxes, middle class taxpayers must bear more of the cost of national defense, healthcare, and other necessary programs.
Then there is the effect on state and local services, most notably education.
Most states mirror federal tax loopholes, and many states also provide tax subsidies for companies just to locate within their borders. Total state and local tax subsidies to business add up to about $70 billion a year. That windfall for big business comes at the expense of students. Over the past three years local school districts have cut 238,000 education jobs, which means more students crammed into larger classes and fewer opportunities for extra tutoring or after-school programs. Middle class families have also had to foot a larger share of the bill for higher education, as total state funding has declined 3.8 percent over the last five years.
Small businesses also pay a price for corporate handouts. Not only is the tax burden shifted to companies that can’t afford to game the system, but small businesses rely on public education to train skilled workers and teach them how to think critically. When Spencer Organ Company, Inc. was founded in 1995, many of the people who applied for jobs not only had basic reading and math skills—they also had been exposed to music education and had learned to use tools in shop classes, knowledge that is useful in the organ restoration business. Today, after years of curriculum cutbacks, most students have not had those opportunities, a shift that translates to higher training costs for this small business.
Our nation built the most prosperous economy in history during the 20th century, and public education was a foundation of that success. We all have a responsibility to provide similar opportunities for future generations to succeed, and our biggest corporations must do their fair share. After all, the same people who own stock in these companies also have a stake in America’s future.
By: Joseph Rotella and Dennis Van Roekel, U. S. News and World Report, April 5, 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
Mitt Romney’s “Sense Of Entitlement”: He Believes He “Deserves” To Be President
If he weren’t so smug, it would almost be possible to feel sorry for Mitt Romney. Beyond the flip-flopping, has any worse actor ever attempted the role of presidential candidate? It’s beyond Romney’s powers to persuade most people of his sincerity about things he does believe, much less the many tenets of contemporary GOP faith he probably doesn’t share — assuming for the sake of argument that anybody, including himself, knows which is which.
There’s little doubt, however, that Romney believes he deserves to be president, in rather the way the fictional Lord Grantham deserves to preside over Downton Abbey. It’s his inability to conceal that sense of entitlement that makes him such an awkward politician.
The candidate’s cringe-inducing attempts to present himself as a Regular Joe almost invariably end in boasting. Campaigning in his native Michigan, he assured voters that his wife drives not just one $50,000 Cadillac, but two — one at their Boston home, the other at their seafront mansion near La Jolla, Calif., as aides subsequently clarified. No word how Mrs. Romney gets around at their New Hampshire lakeside compound or their Park City, Utah, ski palace.
Visiting the Daytona 500, Romney admitted he’s not a keen NASCAR fan, but does have friends who own racing teams. Defending himself on CNN from the perception that his wealth leaves him “out of touch,” he allowed as how, “If people think that there is something wrong with being successful in America, then they better vote for the other guy, because I’ve been extraordinarily successful and I want to use that success and that know-how to help the American people.”
On the “Today” show, Romney explained that people concerned with income inequality are simply jealous. “You know, I think it’s about envy,” he said. “I think it’s about class warfare. When you have a president encouraging the idea of dividing America based on the 99 percent versus 1 percent—and those people who have been most successful will be in the 1 percent — you have opened up a whole new wave of approach in this country, which is entirely inconsistent with the concept of one nation under God.”
Got that, peasants? God’s behind the 13.9 percent tax rate Romney paid on $43 million he earned in 2010 while technically unemployed. Anybody who thinks differently is merely eaten up with resentment. In my experience, the more money people inherit, the more they’re tempted to lecture others about talent and hard work. And to cry the blues about the indignity of paying taxes.
Romney’s air of personal superiority appears to be the one topic about which the poor dork is absolutely sincere. That’s what makes him such a terrible liar. He’s almost frantic with it, like a golden retriever with his ball. Even with the mute button on the TV pressed, you can almost hear him panting.
Look — modest, humble people don’t run for president. President Obama often appears to have trouble restraining his bemusement at the antics of less intelligent people. Nevertheless, Romney’s unrestrained egotism is the reason I think Paul Krugman (among others) has made far too much of an offhand remark the candidate made seemingly renouncing the central tenet of GOP economic dogma.
“If you just cut, if all you’re thinking about doing is cutting [government] spending,” Romney told a group of Michigan voters, “as you cut spending you’ll slow down the economy.”
Well, no kidding.
To Krugman, Romney’s slip of the tongue revealed him as a “closet Keynesian” who “believes that cutting government spending hurts growth, other things equal.” The columnist added that, after all, “Mr. Romney is not a stupid man. And while his grasp of world affairs does sometimes seem shaky, he has to be aware of the havoc austerity policies are wreaking in Greece, Ireland and elsewhere.”
Oh no he doesn’t.
Or, to be more precise, Romney can be perfectly aware and blithely unconcerned. Krugman left off the next sentence where Romney stipulated that cutting spending alone wasn’t enough. “You have to, at the same time, create pro-growth tax policies.”
Translation: even lower taxes for multimillionaires.
But I’d never presume to argue economics with professor Krugman. My point is that Romney’s tycoon capitalism has only partly to do with jobs, money and the real economy. It’s also about cultural revanchism, putting the right people back firmly in charge and the lower orders back in their place.
Tycoon capitalists like Romney see a prolonged slump as an opportunity to render the workforce more docile and grateful. Remember, this is the same guy who opposed government loans to save Chrysler and General Motors. Better to crush the Auto Workers Union. Who said the best way to resolve the national foreclosure crisis would be to speed it up, so that “investors” could buy people’s houses cheaply and rent them out.
In the end, it’s all about No. 1.
By: Gene Lyons, Salon, February 29, 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
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 