“In No Mood For Happy Talk”: The Public Wants Outsourcing Of Jobs Stopped
In his latest ‘Public Opinion Snapshot,’ TDS Co-Editor Ruy Teixeira has some very bad news for outsourcing pioneer Mitt Romney and his fellow Republicans who have been so blase about it. “The public is very, very concerned about outsourcing and wants action to mitigate the damage from the practice,” notes Teixeira, explaining:
Let’s start with how heavily the public believes outsourcing contributes to our ongoing economic problems. In a September 2010 NBC/Wall Street Journal poll, 86 percent agreed (including 68 percent who strongly agreed) that U.S. companies outsourcing work to foreign countries is one of the reasons for our struggling economy and unemployment. This was ranked the highest of eight reasons tested in the survey.Similarly, in a December 2010 Allstate/National Journal survey, 67 percent thought outsourcing played a major role in high unemployment, compared to just 28 percent who thought it played a minor role and 4 percent who thought it played no role at all.
And Americans believe somethjing can — and should — be done about it, continues Teixeira:
Not surprisingly, the public wants something done about this problem. In the August 2010 edition of the same survey, 70 percent thought it was either extremely (39 percent) or very (31 percent) important to reduce the number of jobs being outsourced in order to help the U.S. economy recover from the recession.Even more impressive, in the March 2011 Pew Mobility survey, “Keep jobs in America” was ranked first out of 16 possible steps government could take to make sure people don’t fall behind economically. Ninety percent deemed it either one of the most effective steps (59 percent) or a very effective step (31 percent) the government could take.
If the Republicans thought that Romney’s profiteering from outsourcing was not going to be much of an issue, they are in denial. As Teixeira concludes, “These data suggest conservatives’ attempts to portray outsourcing as no big deal and nothing to worry about are doomed to fail. The public is in no mood for happy talk on this one.”
By: Democratic Strategist Staff, July 3, 2012
“Ignore The Republican Hysteria”: Understanding The Health Care Law Is A Public Responsibility
In a sane climate, Mitt Romney would be running for president on his one big success as a politician: achieving something close to universal private health insurance coverage as governor of Massachusetts. Romneycare cut costs, improved health care outcomes and is quite popular there.
Alas, President Obama’s election has driven many Republicans so crazy that the putative nominee makes an unconvincing show of despising his own brainchild.
Has there ever been a more unconvincing faker in American politics? Romney acts as if he thinks voters are morons. But then, right-wing hysteria over the Supreme Court’s upholding “Obamacare” shows he could be correct.
Mandating health insurance wasn’t Romney’s own idea. The conservative Heritage Foundation saw it as a way to realize the practical and moral benefits of a socialized, government-run health care system like Canada’s through private, for-profit insurance companies — the best of both worlds.
Romney even wrote a 2009 USA Today column advising President Obama about the mandate’s advantages: “Using tax penalties, as we did [in Massachusetts], or tax credits, as others have proposed,” he wrote, “encourages ‘free riders’ to take responsibility for themselves rather than pass their medical costs on to others.”
The president put it this way in reacting to the Supreme Court’s validating Obamacare: “People who can afford to buy health insurance should take the responsibility to do so.”
So is it a tax, or is it a penalty?
The correct answer is “who cares?” Provide your family with the security of a decent health insurance policy and you don’t need to pay it.
Tyranny? Oh, grow up. The government can already make you sign up for Social Security, educate your children, vaccinate your dog, send you to fight a war in Afghanistan, limit how many fish you can catch, and put you in prison and seize your property for growing pot.
Furthermore, Justice Roberts is right. The U.S. government encourages all kinds of virtuous behavior through the tax code. You can get married, or pay higher taxes. Buy a house, have children, invest in a retirement account, even raise cattle (my personal favorite) or pay higher taxes.
And buying health insurance is an intolerable offense against liberty?
Ask Rush Limbaugh who pays for his Viagra. Answer: his employer-provided health insurance company. Only impoverished people, deadbeats and fools go without it.
And guess what? You’re already paying for their medical expenses when time and chance happens to them. As it happens to everybody, even right-wing Supreme Court justices who think it’s clever to compare an inessential food like broccoli to a universal human need like health care.
You can eat your vegetables or not; it’s entirely up to you.
But you can’t not get sick or hurt. And moral considerations aside, the rest of us can’t risk letting you lie down and die on the road. After all, it might be communicable. So there’s no non-participation in the health care system. Even if they drag you in feet-first, there you are.
And somebody’s got to pay for it.
It follows that the minority’s distinction between “activity” and “inactivity” with regard to health insurance is not merely specious legalistic jargon. Frankly, it’s downright adolescent.
Justice Scalia may increasingly resemble a small, volcanic Caribbean nation — eat your vegetables, Tony — but even he is not an island. We’re all in this together.
Previous to Obamacare, the United States has had the most inefficient health care finance in the advanced world, spending by far the highest percentage of its GDP on health care while getting worse results. Most western countries spend a fraction of what we do on health care and their citizens are demonstrably healthier.
Ending the perennial war between hospital bureaucrats and number crunchers at insurance companies and government agencies over who’s going to pay for indigent care should begin to change that.
Meanwhile, now that Obamacare has passed constitutional muster, it’s time for the wise and judicious American public to get off their lazy keisters, ignore the hysteria and learn what’s in the law and what’s not.
I recently took a brief online quiz sponsored by the Kaiser Foundation. I hope you won’t think I’m bragging by saying I got a perfect score. It’s my job to know the basics. Apparently, most Americans don’t. The percentage of citizens ignorant of even the new law’s most basic provisions was shocking.
Granted, the White House has done a terrible marketing job. But no, there’s no new government-run insurance company. If you’ve already got a policy you like, keep it. No, small businesses with fewer than 50 employees need not provide insurance; but, yes, they get tax credits if they do. No, undocumented immigrants aren’t eligible for help.
Many of you have mistakenly trusted carnival barkers like Limbaugh and Sarah Palin. Now that Obamacare’s the law, ignorance is no longer an excuse.
By: Gene Lyons, The National Memo, July 4, 2012
“Blind Trusts Don’t Seem So Blind”: Where And How Does Mitt Romney Hide His Money?
Mitt Romney never wanted to release his tax returns. He refused disclosure in 1994 during his unsuccessful U.S. Senate bid, in 2002 when he won election as Governor of Massachusetts, and in his failed 2008 attempt to gain the Republican nomination for President. Last January Romney finally released his 2010 tax return and an estimate for 2011 after constant badgering by his Republican primary rivals.
Those documents revealed his offshore bank accounts and his tax rate, just shy of 15 percent, or less than what most middle-class Americans pay, despite his estimated worth of up to $250 million. As the Washington Post reported: “By offering a limited description of his assets, Romney has made it difficult to know precisely where his money is invested, whether it is offshore or in controversial companies, or whether those holdings could affect his policies or present any conflicts of interest.” Now journalist and author Nicholas Shaxson digs deeper in a new investigation published by Vanity Fair.
According to Shaxson, Romney is using every possible loophole to avoid paying more taxes. He takes his payments from Bain Capital as investment income, allowing him to pay at a rate much lower than the 35 percent he would owe if he had earned an “ordinary income” of salaries and wages.
But as Shaxson also points out, nobody even knows how much Romney should pay because nobody knows what his offshore accounts actually hold. He maintains accounts and entities not only in Switzerland, but in Bermuda and the Cayman Islands as well.
Consider the example of Sankaty High Yield Asset Investors Ltd., a Bermuda-based corporation set up by Romney in 1997. This entity wasn’t even disclosed in financial documents until 2010, and upon examining that return, Shaxon writes: “We have no idea what is in this company, but it could be valuable, meaning that it is possible Romney’s wealth is even greater than previous estimates.” Furthermore, Bain Capital holds at least 138 funds in the Cayman Islands, with Romney having personal interests in at least 12 that are worth as much as $30 million. The Romney campaign has stated that his taxes would not be affected even if he included these interests, but there’s no way to confirm this because everything is hidden behind confidentiality laws.
Equally intriguing are the Romneys’ blind trusts, designed, as Shaxon explains, “to avoid conflicts of interest for those in public office by having politicians’ assets managed by independent trustees.” But in Romney’s case, the blind trusts don’t seem so blind. Their personal lawyer, Bradford Malt, was appointed to be the trustee, and in 2010, the Romneys invested $10 million in Solamere Founders Fund, which was founded by their son Tagg and former campaign fundraiser Spencer Zwick.
Shaxson also asks whether Romney used “blocker corporations” in the Cayman Islands and elsewhere to escape paying taxes on his retirement account, which is estimated to contain as much as $102 million. Offshore blocker corporations are used to avoid the Unrelated Business Income Tax.
The Obama campaign has hit Romney’s financial holdings hard in ads – and even created a world map showing the overseas locations where the Republican candidate holds accounts. Other Democrats have joined this line of attack. In an interview with The Huffington Post, former Ohio Governor Ted Strickland asserted, “Why would any person who aspired to be president, as Mitt Romney has for probably much of his life, open a Swiss bank account? What does that say about his political judgment and what does it say about his commitment to the United States of America?”
Illinois Senator Dick Durbin adds that there are only two reasons why one would want to hold a Swiss bank account: “Number one, you believe the Swiss franc is a stronger currency than the United States dollar. And that apparently was the decision the Romney family made during the Bush presidency.”
“And secondly, you want to hide something, you want to conceal something,” he said. “It is impossible for him to explain or defend owning a Swiss bank account.”
With Shaxson’s revealing piece, speculation over Romney’s handling of his money will no doubt continue. If the Romney campaign wants everyone to stop questioning his tax returns and offshore accounts, why not just disclose all of the information, as his father George Romney did during his own 1968 presidential run?
By: Lynn Zhong, The National Memo, July 4, 2012
“Santorum’s Prophecy Is Coming True”: Republicans Scratch Their Heads At Romney Tax Messaging Chaos
Republicans are bewildered by the Romney campaign’s declaration that the health care law’s individual mandate is not a tax. The GOP seized on the messaging opportunity handed to them by the Supreme Court, and immediately started trumpeting the idea that President Obama wasn’t just raising taxes — he was orchestrating the largest tax hike in American history. But a top Romney adviser threw water on that Monday, saying the mandate isn’t a tax. The RNC chairman then said Romney believes it is a tax.
Confused yet? Republican strategists told TPM that far from the unified voice the GOP said it would present after the Supreme Court ruling, the messaging has been chaotic, and ultimately embarrassing for Romney and the GOP. But, they believe, the disarray won’t affect down-ballot races, in which GOP candidates can still push the tax messaging.
“It’s a problem, I’m not going to lie,” said Hogan Gidley, a former top adviser to Rick Santorum’s campaign. “I’m not going to sugarcoat it, it’s a problem for the Republicans.”
Gidley was often the public face for Santorum’s warnings that Romney would be caught in precisely this kind of health care mess if he became the nominee. Now that the Supreme Court has ruled and Romney’s campaign has already stepped on the GOP’s messaging, he says Santorum’s prophecy has come true.
“Here we are a couple months into the general and you’re going, ‘Hey wait a minute, that Rick Santorum was right,’” he said.
Democrats are certainly enjoying the “message dichotomy,” as Gidley put it. The party has sent out multiple press releases highlighting the differences between Republican leaders and their presidential nominee. But Gidley said Democrats who believe they’ve got Romney and the GOP on the run should be warned.
“Democrats are doing a dance in the street with the fact that the RNC and the Republican nominee are on different spin planes on this issue,” he said. “But when the dust settles, again, you’re just going to realize that Romney wants to repeal it and Obama doesn’t.”
Other Republican strategists agreed that the split on whether the mandate amounts to a tax is bad optics. But they said that Republicans candidates other than Romney — who don’t have the baggage of Romneycare to deal with — can still run on the tax messaging.
“It’s not as clean and on-message as Republican strategists might prefer,” said Jon McHenry, an unaligned D.C.-based GOP consultant and pollster. “But it’s a one-day, inside-the-Beltway, ‘what are these guys doing?’ story as opposed to taking the tax issue off the table for the next five months.”
Down ballot, the tax argument still works, McHenry said.
“[Senate] Democrats aren’t going to put Mitt Romney on air defending their position. They’re just not,” he said. “It’s more a missed opportunity for the Romney campaign than it is a detriment to other [GOP] campaigns.”
Another strategist agreed that Republicans are annoyed by the Romney campaign steering the focus away from the tax-based message, which strategists think has real legs.
“A lot of people think he’s trying to get too cute,” said the strategist.
By: Evan McMorris-Santoro, Talking Points Memo, July 3, 2012
“Why Bain Is Back”: The Folks On The Receiving End Of Capitalism’s Creative Destruction
A month ago, conventional wisdom had it that the Bain attacks on Mitt Romney were somehow failing terribly — notwithstanding the fact that they’ve been key parts of every other campaign Democrats and Republicans have run against Romney going all the way back to 1994. And yet all of a sudden, the Obama campaign is going full outsource/Bain attack on Romney at every opportunity. So they think it’s working great. New polling suggests they may be on to something. And in the most telling development, in the days leading up to the surprise Supreme Court ruling, the Romney campaign itself is mounting a mammoth pushback, signaling more clearly than anything that they think it’s working too.
So what happened?
Consider three basic factors. First, round one of the Bain Wars was almost entirely hashed out in what you might call the Acela corridor — an insular community, overwhelmingly affluent and educated, and decidedly not the audience for the message or the folks who find themselves on the receiving end of capitalism’s creative destruction.
Sen. Sherrod Brown (D-OH) visited TPM’s DC offices last week as part of our Newsmaker interview series and said basically: trust me, this message worked in Ohio. Maybe he was right all along. I suspect he was.
But there was another rhetorical dimension. ‘Private equity’ is a weird phrase. Most people have no idea what it does or doesn’t mean. And the Romney campaign through it’s surrogates was able to hit its opponents with something like ‘Hey, it’s poor form to be going all Nation magaziney and pretending that private equity isn’t awesome!’
And within that community, it worked. Thus Cory Booker, Bill Clinton, and a lot of other Democrats. ‘Private equity’ means a lot of different things. My own sense is that some parts of it are incredibly destructive while others create efficient allocations of capital. But who cares what I think? Wherever you come down on that question there’s simply no question that private equity is at the tip of the the spear of creative destruction in our society. So in a country where everybody gets to vote, it’s sort of crazy to think criticizing something like that would somehow be beyond the pale like attacking the Pope or crapping on motherhood and apple pie. But there it was.
‘Outsourcing’ though and ‘Offshoring’ — these are just more graspable words, more concrete concepts. Everybody understands them. Everybody knows what they mean. I’m pretty sure the Romney campaign wants to say something like, ‘C’mon, our whole economy today is based on stuff like this and we all know it and everybody accepts it so don’t pretend otherwise.’ But they can’t. And what really got them all boxed up was when they got themselves into this ridiculous debate over whether Mitt’s an ‘outsourcer’ or an ‘offershorer’. As I said Monday, that’s an argument you lose by winning. Or lose by losing. Whichever way, you lose.
Even really smart strategists manage sometimes to charge into a brown paper bag like this. But this was a bad move because it opened Romney up to that most lethal political weapons: ridicule and mockery. The Obama camp seemed to get this early and just decided to drive a freight train right through him. Holding out for this distinction seemed incredibly stupid and more than that wildly out of touch since the difference is basically immaterial to people who lose their jobs as a result of it. And, as always, weakness which invites attacks.
In a country afflicted for decades by loss of high-paying manufacturing jobs and chronically stagnant working class and middle class wages it’s crazy to think that Romney’s history as a private equity king — especially one working the lower tiers of the private equity world — wouldn’t be a liability for a lot of voters. But it was something that DC reporters were best positioned to miss.
By: Josh Marshall, Talking Points Memo, July 2, 2012
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