“Bain-Like Bonuses”: A Leveraged Romney Campaign With Nothing For The Troops
Mitt Romney’s campaign is in a bit of trouble. No, not poll numbers, or internal disputes, or the candidate himself, though those are all problems too. Rather, the Romney campaign, which outraised President Obama for four consecutive months this summer, is in money trouble. Campaign finance disclosures released yesterday show the campaign has only $35 million in the bank — a relatively low amount this close to the election — and is $15 million in debt. The campaign has been forced to scramble to find new big donors, something you don’t want to have to do this late in the game, because its other donors are maxed out.
The problem is not Romney’s fundraising abilities — he’s unquestionably adept at bringing in big checks — but rather with quirks in campaign finance law, his reliance on big donors, and perhaps some mismanagement. The loan was needed as a bridge before he could access his general election fund, which candidates can’t touch until after their nominating conventions. The low cash on hand is because much of the money he raised went to the Republican National Committee to help pay for other races and not to the Romney campaign (he redistributed the wealth, if you will). And the need for new contributors is a byproduct of relying on high-dollar donors, who max out after contributing $2,500 and thus can’t be returned to for a consistent money stream throughout the campaign like smaller donors (John McCain had the same problem in 2008).
Given all that, not to mention the other problems the campaign is facing, this is a bit unexpected. The Washington Post’s Dan Eggen:
Mitt Romney’s campaign handed out more than $200,000 in bonuses last month to senior staffers, according to new disclosure records filed Thursday. Richard Beeson, Romney’s national political director, received a $37,500 payment on Aug. 31 in addition to his salary, according to records filed with the Federal Election Commission. In addition, records show at least six other top staffers each received $25,000 bonuses on the same date: campaign manager Matt Rhoades, general counsel Kathryn Biber, policy advisor Lanhee Chen, communications director Gail Gitcho, digital director Zach Moffatt and advisor Gabriel Schoenfeld. Two other employees received $10,000 bonuses.
“Win bonuses” are pretty common on political campaigns, though President Obama’s campaign did not hand out any after its convention this year. And $200,000 isn’t a ton of money for a campaign that will spend close to a billion dollars. But one has to wonder if it’s really a good idea for a struggling campaign that’s already in debt to hand out cash to its top executives while the candidate is fighting a perception of being a corporate raider .
The comparison to Bain Capital, though imperfect, is almost too obvious to make. Bain often bought companies, leveraged them with massive debt, and then paid the executives big bonuses regardless of whether the company succeeded. Something not entirely dissimilar happened to Bain & Co., the consulting firm that Bain Capital spun off of, when Romney went to rescue it.
And while the very top echelon of his campaign got bonuses, there was nothing for the ground troops. The field staffers who work too many hours manning lonely remote offices for the reward of meager pay and doors getting slammed in their faces didn’t get a bonus. Neither did drivers or clerks or janitors or opposition researchers forced to cable news 24 hours a day.
Again, this isn’t entirely unusual for any political campaign. People sign up knowing they’ll be worked hard for no money because they believe in their candidate and maybe hope they have a shot at a job if their guy or gal wins. But one can’t help wondering if the bonus model sheds some light on Romney’s view of the world and how businesses are run. It’s the people at the top who make it happen and deserve the bonuses, not the ones down below who are actually doing the work.
By: Alex Seitz-Wald, Salon, September 21, 2012
“A Luxury Reserved For The Wealthy”: Taxes Are Not A Charitable Donation
Almost all federal taxpayers who itemize their charitable deductions on their returns deduct the full amount, in order to keep their tax burden as low as possible. Mitt Romney didn’t do that in 2011, according to tax returns released today, leaving $1.8 million un-deducted so he could tell voters he paid a federal tax rate of at least 13 percent. That’s a luxury reserved only for wealthy politicians who can afford to pay an extra few hundred thousand for image purposes.
But one unfortunate line on a memo from Mr. Romney’s lawyer, accompanying the tax returns, suggests that Mr. Romney really doesn’t see much difference between giving to charity and giving to the government.
“Over the entire 20-year period, the total federal and state taxes owed plus the total charitable donations deducted represented 38.49% of total AGI,” the memo said, referring to Mr. Romney’s adjusted gross income. In his mind, apparently, you can just add up the two figures into a new hybrid column, perhaps called, Total Obligation to Society, and make yourself look even more generous.
It doesn’t work that way, however; charity and taxes cannot be conflated to make it sound like you are “giving away” a larger portion of your income than you are. Conservatives can hate paying taxes, and Mr. Romney in particular appears to hate having tax money spent on the “dependent class,” but that doesn’t make the government a charity.
Taxes represent the obligations citizens have to each other and to society, fostering physical safety with defense and law enforcement spending, economic safety with public works, and personal welfare for the needy. Charity is entirely voluntary, even for those who, like Mr. Romney, are asked by their religious authorities to tithe a fixed portion of their income. Those donations play a vital role in every American community, but they can never take the place of a firm government safety net, as much as they are preferred by the right to taxes.
One would think that someone running to be the government’s chief executive would be proud to make tax payments, and would not try to reduce them through exotic foreign tax shelters and an outsized IRA, as Mr. Romney has done for years. But the announcement today that he had deliberately “overpaid” his taxes was grudging and entirely for show. He overpaid them only so that he couldn’t be accused of paying far less before the election.
Despite his accountant’s statement today that he had never paid less than 13.66 percent of his income in taxes over the last 20 years (a level that would make many middle-class taxpayers jealous), it is still an assertion that has not been backed up by the release of actual tax returns for that period. For all the highly trumpeted discretionary donations he has made, Mr. Romney apparently still doesn’t want the public to see how assiduously he has worked to lower his most important social obligation.
By: David Firestone, The New York Times, September 21, 2012
“High Noonan”: Mitt Romney Needs A New Biography, A New Personality, And A New Party
The latest intramural brouhaha in the GOP centers on the unlikely figure of my favorite columnist, the ineffably successful Peggy Noonan.
Earlier this week, you may recall, she penned a column (or a blog post, as it was styled, presumably because her rambling comments could not be edited, or were so urgent as to require immediate publication) that lashed Mitt Romney’s campaign for “incompetence” and then wandered around whatever keyboard or cocktail napkin she was drafting it on before settling on the suggestion that Romney deliver a “big speech” in Brooklyn. Yes, Brooklyn.
Anyhow, this act of heresy produced sufficient heartburn in the Romney campaign or amusement among her superannuated Republican cronies that she followed up today with a new blast at Team Mitt. This time around, perhaps with the aid of an editor, she produced an actual on-the-record quote from a “corporate strategist” who analyzed Romney’s mistakes at considerable, if unoriginal, length. Having teed up this moment (like all moments for many MSM pundits) as crucial, Noonan delivered herself of another Big Idea for Mitt, which is about as plausible as a redefining speech in Brooklyn: Romney needs his very own Jim Baker to take control of his campaign. Indeed, she may be (her crystalline prose leaves this unclear) be urging Romney to bring on the actual Jim Baker to take control of his campaign. Since Baker is 82 years old, I don’t think that’s happening. But putting that aside, the idea that Mitt Romney is going to bring in some Yoda to turn his campaign upside down with just over six weeks until election day is, well, the sort of thing only Peggy Noonan could say.
More generally, this Aging Republican Establishment obsession with alleged staff errors is a pretty good indicator these folks haven’t a clue about the structural problems facing Mitt, who rendered himself virtually immobile in winning the GOP nomination over a weak field and now has no record to run on, and an agenda he’s afraid to talk about–totally aside from having the least attractive persona of any GOP nominee since Nixon. Mitt doesn’t need a “new CEO,” Peggy; he needs a new biography, a new personality, and a new party–you know, one that doesn’t either demand he loudly promote a suicidal policy agenda, or sit around carping about how he doesn’t do things like Ronnie.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, September 21, 2012
“Pre-Planned Parenthood”: Reproductive Rights For Me, But Not For Thee, Romney Family Edition
Oh my. I was not aware of this: in 2011, Mitt Romney’s son Tagg and Tagg’s wife Jen, who earlier this year had twins through a surrogate, signed a contract with the surrogate giving themselves and her the right to abort a pregnancy, even in non-life-threatening situations. And on top of that, Mitt himself subsidized the arrangement, since he helped pay for the surrogate’s services. Oopsy!
TMZ is reporting that the contract provided for the right to abortion if the pregnancy was judged to pose “potential physical harm” to the surrogate, or if the fetus was deemed to be less than genetically perfect. To be fair, it’s unclear whether Mitt or his lawyers actually read the contract. It’s also true that Tagg’s lawyer claims that the abortion provision was not something Tagg and his wife wanted and that it was kept in the contract by mistake, but that explanation sounds suspiciously like ex post facto ass-covering to me.
The contract’s provisions are eminently reasonable, because no one should be forced to carry a pregnancy to term against her will, no matter what the reason. Yet Mitt Romney has claimed that he supports abortion rights only in the event of rape, incest, or a threat to the health or life of the mother. I don’t doubt that, like the vast majority of elites, Romney would support abortion rights for his own family members for any reason, because rich white Christians by definition are not those slutty, trashy people running around having the “wrong” kind of abortions, just for the hell of it.
Still, these revelations pose a dilemma for Romney’s anti-choice supporters: by explicitly and personally subsidizing the right to abortion, as Mitt Romney did by paying the surrogate, is he better, worse, or no different than a nefarious outfit like Planned Parenthood? Inquiring minds want to know!
By: Kathleen Geier, Washington Monthly Political Animal, September 22, 2012
“The Factions And Their Guns”: Don’t Blame Mitt Romney For The GOP’s Problems
Yes, Mitt Romney had a week I wouldn’t wish on … well, Mitt Romney. Yes, his campaign is incompetent, as Peggy Noonan wrote Friday. Yes, there is something really off about the guy personally. But as conservatives like Noonan start in on Romney vilification, I feel the need to stand up and reiterate: Romney’s problems aren’t all Romney’s fault. They’re not even half his fault. They’re chiefly the fault of a movement and political party that has gone off the deep end. Almost every idiotic thing Romney has done, after all, can be traced to the need he feels to placate groups of people who are way out there in their own ideological solar system, with no purchase at all on how normal Americans feel and think about things. This is much the harder question for Noonan and others to confront, and they really ought to ponder it.
Since he started running, Romney has had to cater to four factions in the GOP, each of which contributes in its way to the party’s self-destructiveness: the rich and their apologists, who think Barack Obama has made life in America well-nigh impossible for those earning $1 million a year; the Tea Party populists, the middle-aged and older white people who feel intense resentment against Obama and his America; the foreign-policy neocons, who invented this fable about Obama apologizing for America and so on; and the rabble-rousers—Rush Limbaugh, Michelle Malkin, etc., whose megaphones announce all these anxieties and others.
These four groups have each been holding guns to Romney’s temple. He’s a weak man, yes. But in a way—in only this one particular way—I feel a little sorry for him. These groups permit no room to maneuver whatsoever. None. Not an inch. So when something happens that is in their wheelhouse, the expectation immediately arises that Romney will utter every syllable precisely as they want to hear it.
So it was with the neocons after the Cairo and Benghazi riots. Now, I’m sure it’s partly true that Romney and his team are one big overeager floppy-eared dog, galumphing across the lawn anxious to please their masters. But the master sets the dynamic in place. There’s no doubt whatsoever that if the Romney people didn’t feel they had to rush to please that crowd, he wouldn’t have issued that statement at an utterly inappropriate time and then tried absurdly to defend it the next morning.
The same can be said with regard to Romney’s selection of Paul Ryan. We don’t really know that this was forced on him per se by the right, but we have reason to believe that the logic, shall we say, of his naming Ryan was made clear to him. And what good has Ryan done him? Did you notice the poll last week, which deserves more attention than it’s received, showing that Ryan was a less popular vice-presidential choice than Sarah Palin? This is the man the gun-holding factions said was a brilliant, game-changing choice. He’s game changing all right, though not as they intended.
And it’s the same story on the 47 percent. The man who asked that question was speaking very clearly for Faction A above. There can be little doubt that the vast majority of the people in that room, maybe every person, felt his pain, and Romney knew exactly what he had to say. Again, it’s certainly a two-way street; Romney obviously believed every word he said. But he knew the catechism.
And by the way, does anyone think a Republican presidential candidate would have said this, even behind closed doors, in 1992 or 1996 or 2000 or even in 2008? I think there’s no chance. It’s probably the sort of thing a lot of them thought. But it’s something they never, ever would have said. They’d have known better. So the existence of these factions in their precise form is new. The concealed anxieties of all these factions were brought to the surface by the financial crisis and its aftermath, the black guy standing up there representing the America that they don’t know and that scares them, and the former Massachusetts governor who seems squishy and must forever prove his loyalty. And boy is the lid ever off now.
Could Jim Baker fix this campaign, as Noonan asserts or hopes? He’s a knife fighter, there’s no doubt about that. Look at Florida 2000. But remember, he came in during the late innings to help Poppy Bush’s 1992 campaign, and that ended pretty ingloriously. And besides, he’s 82 now. Can he work 14-hour days, make crisp, snap decisions? One could argue that Romney’s gotten all the help he needs this year from 82-year-old men.
Romney deserves everything that is happening to him (I guess I would wish this past week on him after all). But it isn’t happening because of Mitt Romney alone, or even the now-hated Stuart Stevens. It’s happening because of the factions and their guns. It’s happening because of a party and movement that are out of control and out of touch. There is not a prominent Republican in the country who could be doing any better, with the possible lone exception of Jeb Bush, but it’s probably too early yet for another Bush. Face it, Republicans: he was and is your best candidate, and he’s tanking now more because of you than because of him.
By: Michael Tomasky, The Daily Beast, September 23, 2012
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