Why Mitt Romney’s Tax Returns Undermine The GOP’s Investment Tax Argument
According to Republican gospel, taxes on investment must always be low, or else investors will simply sit on their money, refusing to do the very thing that could earn them more money. However, as David Abromowitz laid out in Bloobmerg View today, Mitt Romney’s tax returns undermine this argument.
After all, Romney made his fortune via investments made by Bain Capital, the private equity firm that he ran. And Bain’s investments between 1984 and 1999 “occurred when capital-gains rates were much higher than they are today. Yet Bain consistently attracted massive amounts of private capital, and thrived”:
Bain’s haul is further evidence that fair tax rates don’t hold back profit-seeking capitalists, at least until those rates reach a point that no one is proposing. From 1984 until 1999, the top rates on capital gains — the profit from investments as opposed to compensation for work — were often at 28 percent, and never lower than 20 percent. Indeed, in 1987, under President Ronald Reagan, the 20 percent rate rose to 28 percent — a 40 percent increase in potential taxation of Bain investment profit. (Yes, Reagan did raise taxes, even on capital.)
An analysis by the Wall Street Journal of 77 Bain deals in that time period showed that the firm “produced about $2.5 billion in gains for its investors,” on about $1.1 billion invested. Clearly, even with capital-gains rates almost double those today, fund managers such as Romney didn’t lack investors.
As billionaire investor Warren Buffett put it, “I have worked with investors for 60 years and I have yet to see anyone — not even when capital-gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain.” It’s worth remembering that it was conservative icon Ronald Reagan who completely equalized the tax treatment of investment and wage income, rejecting the argument that a lower capital gains rate was necessary to incentivize investment.
As Nobel Prize winning economist Paul Krugman has noted, the case for a lower capital gains tax is dubious at best. “Nothing in our history or experience says that unearned income has to be taxed this lightly,” he wrote.
By: Pat Garofalo, Think Progress, February 9, 2012
Mitt Romney Picks Up Santorum’s False Claim About Government Picking Church Ministers
Yesterday morning, presidential candidate Rick Santorum made the unambiguously false claim that the Obama Administration wants the government to force Catholics to ordain female priests — a brief the administration filed in the Supreme Court actually says exactly the opposite. Perhaps inspired by his surprising triple loss in three GOP primary and caucus states earlier this week, Santorum’s opponent Mitt Romney repeated Santorum’s fabricated claim at a campaign event later in the day:
This president is attacking religion, and is putting in place a secular agenda that our forefounders would not recognize. He, uh, he took a position which I thought was interesting which is he said, instead of a church being able to say who their ministers are, the government has to approve who you say your ministers are. He made that decision, and by the way, the church involved went to the Supreme Court, ultimately, to see if they could reverse that decision by the Obama Administration . . . did you know that the Supreme Court voted 9-0 against the president to retain religious liberty.
Imitation is the sincerest form of flattery, but Romney really shouldn’t ape Santorum’s inability to get his facts straight. For starters, the Obama Administration did not even come close to saying that the government has to approve church ministers. Rather, as conservative Chief Justice John Roberts explained in the unanimous opinion Romney refers to, the Obama Administration’s position is that “it would violate the First Amendment for courts to apply [anti-discrimination] laws to compel the ordination of women by the Catholic Church or by an Orthodox Jewish seminary.”
Nor is it true that this Supreme Court decision ended some nefarious Obama plot to impose unwanted clergy upon churches. The case that Romney refers to, Hosanna-Tabor v. EEOC, dealt with a school teacher who spent most of her time teaching secular subjects, but who also spent some time providing religious education at a religious school. The school claimed this teacher was actually a minister — and thus unprotected from the federal law that makes it illegal to fire her because she has a disability — while the teacher (and the Obama Administration) believed that she should not be treated the same way as Catholic priests or Orthodox rabbis because the overwhelming majority of her job duties were secular. Ultimately, a federal appeals court agreed with the teacher, and the Supreme Court agreed with the school.
No one in this saga ever claimed that the government can pick and choose a church’s ministers. Rather, the most important issue in the case was a very narrow factual dispute over what a single woman’s job was. But, of course, for Romney to realize this, he would actually have to spend some time learning basic facts before opening his mouth. And he has much more important things to do, like finding ways to copy Santorum’s successful strategy of telling falsehoods to GOP primary voters.
By: Ian Millhiser, Think Progress, February 9, 2012
Catholic Bishops Demand All Businesses Be Given The Right To Deny Women Contraception Coverage
Catholic bishops and their GOP allies have been in an uproar ever since the Obama administration announced new rules that require employers, including most religiously-affiliated institutions, to cover contraception in their health plans with no cost-sharing. Republican candidates have accused Obama of waging a “war against religious freedom.” Rick Santorum went so far as to say Obama has put America on “the path” of beheading devout citizens.
The less shrill voices have implored Obama to “compromise” by broadening the religious exemption to let religiously-affiliated hospitals refuse women contraception. But the U.S. Conference of Catholic Bishops has made it clear they’re not interested in compromise. According to a report in USA Today, they aren’t just demanding a broader religious exemption from the new contraception coverage rule — they want contraception coverage removed from the Affordable Care Act altogether:
The White House is “all talk, no action” on moving toward compromise, said Anthony Picarello, general counsel for the U.S. Conference of Catholic Bishops. “There has been a lot of talk in the last couple days about compromise, but it sounds to us like a way to turn down the heat, to placate people without doing anything in particular,” Picarello said. “We’re not going to do anything until this is fixed.”
That means removing the provision from the health care law altogether, he said, not simply changing it for Catholic employers and their insurers. He cited the problem that would create for “good Catholic business people who can’t in good conscience cooperate with this.”
“If I quit this job and opened a Taco Bell, I’d be covered by the mandate,” Picarello said.
In short, Catholic bishops are saying that federal laws shouldn’t apply to anyone who claims to have a religious objection to them. Houses of worship and other religious nonprofits are already completely exempt from the rule. It is only when religious institutions choose to go into business as hospitals and serve the general public that they are bound by the same laws as everyone else. Yet the U.S. Conference of Catholic Bishops has promised a legal challenge.
But the organization does not speak for a majority of American Catholics, 52 percent of whom support requiring health plans to cover contraception. Several major Catholic universities and hospitals already offer contraception coverage.
By: Marie Diamond, Think Progress, February 9, 2012
“You’re No Better Than A Whore On The Street: Contraception Tales From The Kitchen Table
This is a really old story, but let me tell you anyway.
When I was first married, my mother-in-law sat down at her kitchen table and told me about the day she went to confession and told the priest that she and her husband were using birth control. She had several young children, times were difficult — really, she could have produced a list of reasons longer than your arm.
“You’re no better than a whore on the street,” said the priest.
This was, as I said, a long time ago. It’s just an explanation of why the bishops are not the only Roman Catholics who are touchy about the issue of contraception.
These days, parish priests tend to be much less judgmental about parishioners who are on the pill — the military was not the first institution in this country to make use of the “don’t ask, don’t tell” system. “In most parishes in the United States, we don’t find them preaching about contraception,” said Jon O’Brien of Catholics for Choice. “And it’s not as though in the Mass you have a question-and-answer period.”
You have heard, I’m sure, that the Catholic bishops are in an uproar over an Obama administration rule that would require Catholic universities and hospitals to cover contraceptives in their health care plans. The Republican presidential candidates are roaring right behind. Mitt Romney claimed the White House was trying to “impose a secular vision on Americans who believe that they should not have their religious freedom taken away.”
Let’s try to work this out in a calm, measured manner. (Easy for me to say. I already got my mother-in-law story off my chest.)
Catholic doctrine prohibits women from using pills, condoms or any other form of artificial contraception. A much-quoted study by the Guttmacher Institute found that virtually all sexually active Catholic women of childbearing age have violated the rule at one point or another, and that more than two-thirds do so consistently.
Here is the bishops’ response to that factoid: “If a survey found that 98 percent of people had lied, cheated on their taxes, or had sex outside of marriage, would the government claim it can force everyone to do so?”
O.K. Moving right along.
The church is not a democracy and majority opinion really doesn’t matter. Catholic dogma holds that artificial contraception is against the law of God. The bishops have the right — a right guaranteed under the First Amendment — to preach that doctrine to the faithful. They have a right to preach it to everybody. Take out ads. Pass out leaflets. Put up billboards in the front yard.
The problem here is that they’re trying to get the government to do their work for them. They’ve lost the war at home, and they’re now demanding help from the outside.
And they don’t seem in the mood to compromise. Church leaders told The National Catholic Register that they regarded any deal that would allow them to avoid paying for contraceptives while directing their employees to other places where they could find the coverage as a nonstarter.
This new rule on contraceptive coverage is part of the health care reform law, which was designed to finally turn the United States into a country where everyone has basic health coverage. In a sane world, the government would be running the whole health care plan, the employers would be off the hook entirely and we would not be having this fight at all. But members of Congress — including many of the very same people who are howling and rending their garments over the bishops’ plight — deemed the current patchwork system untouchable.
The churches themselves don’t have to provide contraceptive coverage. Neither do organizations that are closely tied to a religion’s doctrinal mission. We are talking about places like hospitals and universities that rely heavily on government money and hire people from outside the faith.
We are arguing about whether women who do not agree with the church position, or who are often not even Catholic, should be denied health care coverage that everyone else gets because their employer has a religious objection to it. If so, what happens if an employer belongs to a religion that forbids certain types of blood transfusions? Or disapproves of any medical intervention to interfere with the working of God on the human body?
Organized religion thrives in this country, so the system we’ve worked out seems to be serving it pretty well. Religions don’t get to force their particular dogma on the larger public. The government, in return, protects the right of every religion to make its case heard.
The bishops should have at it. I wouldn’t try the argument that the priest used on my mother-in-law, but there’s always a billboard on the front lawn.
By: Gail Collins, Op-Ed Columnist, The New York Times, February 8, 2012
“A Moral Imperative”: Protecting Access To Birth Control Does Not Violate Religious Freedom
In many respects it is amazing that in 2012 there is a controversy over women’s access to birth control.
Let’s be clear, the current controversy over the Obama administration’s rules that require all employers who provide health insurance to provide birth control without a co-pay to its women employees, has nothing whatsoever to do with religious freedom.
It has everything to do with an attempt to take away women’s access to easy, affordable birth control, no matter where they work.
Birth control is not controversial. Surveys show that 99 percent of women and 98 percent of Catholic women have used birth control at some time in their lives.
No one is trying to require that anyone else use birth control if it violates their religious convictions. But the convictions of some religious leaders should not be allowed to trump the rights of women employees to have access to birth control.
The rule in question exempts 355,000 churches from this requirement since they presumably hire individuals who share the religious faith of the institutions in question. But it does not exempt universities and hospitals that may be owned by religious organizations, but serve — and employ — people of all faiths to engage in decidedly secular activities. These are not “religious institutions.” They are engaged in the normal flow of commerce, even though they are owned by religious organizations.
Some religious leaders argue that they should not be required to pay for birth control coverage for their employees if they have religious objections to birth control. This argument ignores the fact that health insurance coverage is not a voluntary gift to employees. It is a part of their compensation package. If someone opposed the minimum wage on religious grounds — say because they believed it “discouraged individual initiative” — that wouldn’t excuse them from having to pay the minimum wage.
If a Christian Science institution opposed invasive medical treatment on religious grounds, it would not be allowed to provide health care plans that fund only spiritual healing.
Many Americans opposed the Iraq War — some on religious grounds. That did not excuse them from paying taxes to the government.
The overwhelming majority of Americans oppose taking away the ability for women to have easy, affordable access to birth control. A Public Policy Polling survey released yesterday found that 56 percent of voters support the decision to require health plans to cover prescription birth control with no additional out-of-pocket fees, while only 37 percent opposed. Fifty-three percent of Catholic voters favor the benefit.
Fifty-seven percent of voters think that women employed by Catholic hospitals and universities should have the same rights to contraceptive coverage as other women.
No doubt these numbers would be vastly higher if the poll were limited to the employees of those hospitals and universities because eliminating the requirement of coverage would cost the average woman $600 to $1,200 per year in out-of-pocket costs.
But ironically, requiring birth control coverage generally costs nothing to the institution that provides it. That’s because by making birth control accessible, health plans cut down on the number of unwanted pregnancies that cost a great deal more. And of course they also cut down on the number of abortions.
That may help explain why many Catholic-owned universities already provide coverage for birth control. For instance, a Georgetown University spokesperson told ThinkProgress yesterday that employees “have access to health insurance plans offered and designed by national providers to a national pool. These plans include coverage for birth control.”
The University of San Francisco, the University of Scranton, DePaul University in Chicago, Boston College — all have health insurance plans that cover contraception.
And, finally, this is nothing new. Twenty-eight states already require organizations that offer prescription insurance to cover contraception.
Of course the shocking thing about this entire controversy is that there is a worldwide consensus that the use of birth control is one of society’s most important moral priorities. Far from being something that should be discouraged, or is controversial, the use of birth control is critical to the survival and success of humanity.
In 1968, the world’s population reached 3.5 billion people. On October 31, 2011, the United Nations Population Division reported that the world population had reached seven billion. It had doubled in 43 years.
It took 90,000 years of human development for the population to reach 1 billion. Over the last two centuries the population has grown by another six billion.
In fact, in the first 12 years of the 21st Century, we have already added a billion people to the planet.
It is simply not possible for this small planet to sustain that kind of exponential human population growth. If we do, the result will be poverty, war, the depletion of our natural resources and famine. Fundamentally, the Reverend Malthus was right — except that the result is not inevitable.
Population growth is not something that just happens to us. We can choose whether or not to reproduce and at what rates.
No force is required. The evidence shows that the population explosion stops where there is the availability of birth control and women have educational opportunity.
That’s why it is our moral imperative to act responsibly and encourage each other to use birth control. And it’s not a hard sell. Children are the greatest blessing you can have in life. But most people are eager to limit the number of children they have if they have access to contraception. We owe it to those children — to the next generation and the generation after that — to act responsibly and stabilize the size of the human population.
The moral thing to do is to make certain that every woman who wants it has access to birth control.
By: Robert Creamer, The Huffington Post, February 8, 2012
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