Mitt Romney
Mr. One Percent’s wealth and tax troubles
Mitt Romney's speaking fees alone lift him out of the 99 percent, but he says $374,000 in a year is "not very much" VIDEO
Mitt Romney (Credit: AP/Charles Dharapak) Mitt Romney unburdened himself a little on Tuesday, hinting that he might grace us with his 2011 tax returns sometime in April and sharing some details about his own wealth. His handlers really shouldn’t let him loose without a TelePrompter; Romney can’t help making gaffes when it comes to issues of money, privilege and class.
As I said last week, one likely reason Romney balks at releasing his tax returns is that he pays a much lower rate than most of the rest of us, because most of his income comes from investments, which are taxed the capital gains rate of 15 percent. And indeed, today Romney acknowledged that his rate is probably around 15 percent because most of his income is investment income, meaning that his money makes money for him, rather than his labor.
It looks like Romney’s trying a strategy of softening up the public by previewing some of the disturbing details of his tax returns before releasing the documents themselves. It’s also worth noting that April is not merely tax month, but a point at which the GOP primaries are likely going to be already decided, meaning primary voters aren’t going to be able to do anything about it if they don’t like what the returns reveal.
Romney also shared that he has some income from speaking fees, in addition to his investment income, but he said it’s “not very much.” In fact, he earned $374,000 in speaking fees last year, and that amount of income alone would put him in the top 1 percent of all American earners. How can he suggest that $374,000 is “not very much?” There may be no better detail to symbolize the privilege of this cosseted candidate.
Still, that comment has some competition for Romney’s most clueless remark about wealth and privilege. There’s a long list of silly statements: From “corporations are people too, my friend” to “I like being able to fire people;” calling himself “unemployed” – because his money makes him money – and claiming he’s worried about “pink slips;” insisting he told his landscaper he couldn’t use undocumented workers because “I’m running for office, for pete’s sake.”
I don’t think Romney would make a good president, but I do believe his candidacy can do a lot to help the country, by providing an easy to understand national seminar in the unfairness of our tax policy. It’s utterly rigged to favor the rich, with the help (until recently) of both parties. Scrutinizing Romney’s career and his earnings will let us understand not merely the inequity of lower capital gains taxes on investment income, but of a particularly invidious category of income taxed at the lower rate because it’s considered “carried interest.” Private equity managers like Romney receive a share of whatever their firm makes for investors, known as carried interest, and it’s taxed at only 15 percent. Theoretically a smaller capital gains rate is justified by the argument that investors risk their money to make the economy strong (a fiction in itself), but the carried interest rule is particularly noxious because equity firm managers aren’t risking their own money.
Ironically, it was Romney’s father George who set the precedent for presidential candidates releasing their tax returns in 1968. The senior Romney released 12 years of returns, and according to Think Progress, they revealed that he didn’t avail himself of the loopholes many rich people use to keep their taxes even lower. Now his son won’t even commit to releasing a year’s worth – and he’s considering 2011 alone because they likely haven’t been filed yet and thus they could still be prettified to avoid loopholes and other tax dodges that would be appall many Americans.
Of course, even Romney’s self-declared 15 percent rate would be shocking enough. The Obamas paid 26 percent in 2010, according to ProPublica. Democrats have to look forward to a race that pits the middle class Obama, who was still paying off student loan and credit card debt just a few years before he joined the Senate, against the plutocrat Romney. And that’s what the race is almost certain to be. Newt Gingrich’s superlative night of race-baiting in Monday’s debate not withstanding, Romney is almost certain to win South Carolina and the nomination.
I talked about the latest Romney revelations on MSNBC’s “Politics Nation” with Rev. Al Sharpton Tuesday:
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Joan Walsh is Salon's editor at large. More Joan Walsh.
Romney giving up on home state of Massachusetts
Romney advisers admit that an attempt to win the candidate's home state is out of the question
FILE - In this April 16, 2012 file photo, Republican presidential candidate, former Massachusetts Gov. Mitt Romney and his wife Ann, are seen outside Fenway Park baseball stadium in Boston. Dont bet on Mitt Romney winning his home state. Or even trying. Thats not been a topic of discussion, Romney campaign adviser Kevin Madden said when asked if the Republican former Massachusetts governor would compete in the heavily Democratic state. (AP Photo/Steven Senne)(Credit: AP) BELMONT, Mass. (AP) — Don’t bet on Mitt Romney winning his home state. Or even trying.
“That’s not been a topic of discussion,” Romney campaign adviser Kevin Madden said when asked if the Republican former Massachusetts governor would compete in the heavily Democratic state.
Romney was never a hero in the liberal bastion, and aides say there are other ways he can win the White House and deny President Barack Obama a second term without the 11 electoral votes Massachusetts offers.
Continue Reading CloseSPIN METER: Rivals airbrush anti-Romney words
After the nastiness of the Republican primary race, former candidates have collective amnesia about Romney disses
FILE - In this Jan. 26, 2012 file photo, Republican presidential candidates, former House Speaker Newt Gingrich and former Massachusetts Gov. Mitt Romney talk during a commercial break at the Republican presidential candidates debate in Jacksonville, Fla. Remember Gingrich calling Romney a liar? Michele Bachmann saying Romney's unelectable? Rick Santorum calling Romney "the worst Republican in the country" to run against Obama? They're hoping you don't. And acting like it never happened _ even though most of their words are just clicks away online. (AP Photo/Matt Rourke, File)(Credit: AP) WASHINGTON (AP) — Remember Newt Gingrich calling Mitt Romney a liar? Michele Bachmann saying Romney’s unelectable? Rick Santorum calling Romney “the worst Republican in the country” to run against President Barack Obama?
They’re hoping you don’t. And acting like it never happened (even though most of their words are just clicks away online.)
One by one — with the exception of holdout Ron Paul — the GOP also-rans have coughed up endorsements of their onetime rival. And as they do, they’re pulling rhetorical backflips to distance themselves from their former harsh assessments of Romney.
Continue Reading CloseRomney’s human shield
The campaigns end this fall, but their flacks will never go away. Meet Eric Fehrnstrom, enforcer on the GOP side
(Credit: AP/LM Otero) The only honest line in “Inside the Circus,” the recent Politico e-book in which millions of nauseating Republican operatives lacerate each other anonymously during primary season, should be mounted on the computers of all “political news readers”: “It is sometimes unclear whether political campaigns are run for the benefit of the voters and office seekers or for the professional consultants who earn their living from politics.” Every other line in the book mostly goes like, and then the RNC flack whispered that the campaign flack didn’t know what he was doing, but that one sentence about the “professional consultants” would be enough to make Jane Austen envious.
Continue Reading CloseJim Newell has covered politics for Wonkette and Gawker and is a contributor to the Guardian. More Jim Newell.
Romney oversimplifies debt ‘inferno’
On the campaign trail, Romney has repeatedly ignored the actual causes of the nation's runaway debt
In this May 15, 2012, photo, Republican presidential candidate, former Massachusetts Gov. Mitt Romney speaks during a campaign stop in Des Moines, Iowa. When Republican Romney decried the prairie fire of U.S. debt Tuesday, he ignored some of the sparks that set it ablaze. One was the Great Recession that took hold before Barack Obama became president. That landmark event went unmentioned in Romneys speech. Another was a series of Bush-era tax cuts that Romney wants to follow with even lower rates. (AP Photo/Charlie Neibergall)(Credit: AP) WASHINGTON (AP) — When Republican presidential hopeful Mitt Romney decried the “prairie fire” of U.S. debt Tuesday, he ignored some of the sparks that set it ablaze.
One was the Great Recession that took hold before Barack Obama became president. That landmark event went unmentioned in Romney’s speech. Another was a series of Bush-era tax cuts that Romney wants to follow with even lower rates.
Instead he laid the blame on Obama, a president who has certainly increased the nation’s eye-popping debt — but not, as Romney claimed, by nearly as much as all other presidents combined.
Continue Reading CloseRomney’s Bill Clinton gambit
He's praising the former president to paint Obama as a liberal – and to court his devotees. Why it won't work
(Credit: Reuters/Jim Young) Desperate Mitt Romney is not only taking credit for the auto bailout he opposed, and pretending to be a “job creator” rather than a Bain Capital job destroyer. Now he’s regularly praising former President Bill Clinton as a centrist whose legacy has been betrayed by the “liberal” President Obama. Actual liberals laugh, but can Romney’s gambit work?
Of course not, but Mitt’s not giving up.
In Lansing, Mich., last week, Romney derided Obama as an “old school liberal” compared to Clinton, whom he called a “new Democrat.” Where Clinton “said the era of big government was over, President Obama brought it back with a vengeance,” Romney told a crowd of college students. A campaign official told CNN that Obama “really turned his back” on Clinton’s policies, including welfare reform and middle-class tax cuts.
Continue Reading CloseJoan Walsh is Salon's editor at large. More Joan Walsh.
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