Economy

BRIDGE BRIEFING: Romney's Tax Plan

Romney’s Tax Plan Would Raise taxes on middle class families by $2000 while cutting taxes on multi-millionaires by $250,000.

Tax Policy Center: Romney Tax Plan Would Raise Taxes On Families With Children With Income Below $200,000 By $2,041. According to a Tax Policy Center analysis of Romney’s tax plan and promises, families with children that earn below $200,000 a year would see tax increases of $2,041. [Tax Policy Center, 8/1/12] Tax Policy Center: Top 0.1% Would See $246,652 Tax Cut Per Year Under Romney Plan. According to a Tax Policy Center analysis of Romney’s tax plan and promises, the top 0.1% would receive a tax cut of $246,652 per year. [Tax Policy Center, 8/1/12]

The Romney Plan Raises Taxes Of The Middle Class And Poor To Pay For Tax Breaks For The Super-Wealthy

A Brookings Study By Economists With Experience In Both Republican And Democratic Admirations Concluded That Romney’s Tax Plan Would Cut Tax Rates For The Wealthy While Leaving 95 Percent Of Americans With A Net Tax Increase. According to New York Times, “The center is a joint effort of the Urban Institute and the Brookings Institution that includes economists and tax experts with experience in both Republican and Democratic administrations. It concluded that a tax-code overhaul meeting Mr. Romney’s goal — a 20 percent cut in all rates without adding to annual budget deficits — would leave wealthy taxpayers with a large tax cut but 95 percent of Americans with a net tax increase once tax breaks for items like mortgage interest are curtailed to keep deficits in check.” [New York Times, 8/11/12] Romney’s Tax Plan Would Raise Taxes For 95 Percent Of Americans While Cutting Taxes For The Richest 5 Percent. According to The Washington Post, “Mitt Romney’s plan to overhaul the tax code would produce cuts for the richest 5 percent of Americans — and bigger bills for everybody else, according to an independent analysis set for release Wednesday. The study was conducted by researchers at the Brookings Institution and the nonpartisan Tax Policy Center, who seem to bend over backward to be fair to the Republican presidential candidate. To cover the cost of his plan — which would reduce tax rates by 20 percent, repeal the estate tax and eliminate taxes on investment income for middle-class taxpayers — the researchers assume that Romney would go after breaks for the richest taxpayers first… What would that mean for the average tax bill? Millionaires would get an $87,000 tax cut, the study says. But for 95 percent of the population, taxes would go up by about 1.2 percent, an average of $500 a year.” [The Washington Post, 8/1/12]

BRIDGE BRIEFING: Romney’s Poor Jobs Record In Massachusetts

Massachusetts Job Creation Ranked Poorly Under Romney

In Romney’s Four Years As Governor Massachusetts Ranked 47^th Out Of 50 In Jobs Growth. According to Marketwatch, “The Republican contender was the governor of Massachusetts from January 2003 to January 2007. And during that time, according to the U.S. Labor Department, the state ranked 47th in the entire country in jobs growth. Fourth from last. The only ones that did worse? Ohio, Michigan and Louisiana. In other words, two rustbelt states and another that lost its biggest city to a hurricane. The Massachusetts jobs growth over that period, a pitiful 0.9%, badly lagged other high-skill, high-wage, knowledge economy states like New York (2.7%), California (4.7%) and North Carolina (7.6%). The national average: More than 5%.” [Marketwatch, 2/23/10]

In Romney’s First Year In Charge, Massachusetts “Ranked Dead Last In America In Job Growth.” According to Marketwatch, “So far Obama has been in office for just one year. How was Romney’s performance by his first anniversary? Fiftieth out of fifty. That’s right. In Romney’s first year in charge, Massachusetts ranked dead last in America in jobs growth.” [Marketwatch, 2/23/10]

Massachusetts Unemployment Rate “Showed Little Movement During Romney’s Tenure” And Went From Below The National Average When He Took Office To Above The National Average When He Left. According to the Associated Press, “The state’s unemployment numbers also showed little movement during Romney’s tenure. In December 2002, as Romney prepared to step into office, Massachusetts unemployment rate stood at 5.6 percent, slightly lower than the national unemployment rate of 6 percent. By December 2006 - Romney’s last full month in office - national unemployment had fallen to just 4.5 percent while Massachusetts unemployment numbers had inched down to 5.2 percent. ‘We’ve had a very slow economic recovery and we’ve trailed most of the rest of the nation,’ said Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation. ‘It’s not the turnaround he’s advertised.’” [Associated Press, 2/4/08]

BRIDGE BRIEFING: Romney And The Auto Rescue

Romney Opposed Government Involvement In The Auto Industry

Romney Wanted To “Let Detroit Go Bankrupt” And Said The Demise Of The Auto Industry Would Be “Virtually Guaranteed” By A Government Bailout. According to Romney, “If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.” [Romney Op-Ed, New York Times, 11/19/08] Romney Opposed The Bailout Of The Domestic Auto Industry. According to the Detroit News, “On the federal ‘bailout’ in 2008 of the domestic auto industry, Romney writes he opposed the billions provided ‘because it enabled GM and Chrysler to avoid the restructuring and productivity improvements essential for their success.’ The federal government has provided the auto industry with $86 billion, including $50 billion for GM and $12 billion for Chrysler. Romney urged a managed bankruptcy, a step the Obama administration eventually took to help stabilize GM and Chrysler Group LLC. ‘The managed bankruptcy that I proposed ultimately occurred,’ Romney writes, ‘but only after tens of billions of taxpayer money had been wasted, and only after sweetheart deals and paybacks for favored interest groups had been engineered with the public’s money.’” [Detroit News, 2/24/10] Romney Believed Automakers Should Have Had Private Bankruptcy Without Federal Aid. According to the Associated Press, “Romney told a diner at the Senate Coney Island restaurant Thursday morning that the automakers should have gone through a private bankruptcy without the federal aid. The businessman and former Massachusetts governor says he believes ‘in the process of law’ rather than bailouts.” [Fox News, Associated Press, 6/9/11] Romney Believed Things In Detroit Would Be Better Without Intervention.  According to a Detroit News op-ed, Romney wrote “The president tells us that without his intervention things in Detroit would be worse. I believe that without his intervention things there would be better.” [Detroit News, 2/14/12]

Oops… Romney Venue Benefited From Obama Admin's Actions Toward China

At his event at American Spring Wire in Ohio today, Romney repeated his pledge to crack down on China. As you know, his campaign has routinely attacked the Obama administration over this very issue. Unfortunately for Romney, though, American Spring Wire actually petitioned the Obama administration for help dealing with China... then got exactly what they wanted. Research below: In June 2009, American Spring Wire Petitioned The U.S. Department Of Commerce To Investigate Countervailing Duties And Antidumping On Steel Wire Imports From China.According to a press release from the U.S. Department of Commerce’s International Trade Administration, obtained via Targeted News Service, “On June 17, the Department of Commerce (Commerce) announced its decision to initiate antidumping and countervailing duty investigations on imports of certain prestressed concrete steel wire strand from the People’s Republic of China (China). Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. The petitioners for these investigations are American Spring Wire Corp. (OH), Insteel Wire Products Company (NC), and Sumiden Wire Products Corp. (TN). The merchandise covered by these investigations consists of certain prestressed concrete steel wire strand which is a collection of wire rod bars, typically covered with an epoxy material and is primarily used in concrete construction applications. The merchandise covered by these investigations is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7312.10.3010 and7312.10.3012. While the HTSUS subheadings are provided for convenience and customs purposes, Commerce’s written description of the subject merchandise governs the scope of these investigations. From 2007 to 2008, imports of prestressed concrete steel wire strand from China increased 7.83 percent by volume and were valued at an estimated $178 million in 2008.” [Targeted News Service, 6/17/09] As A Result Of The Juner, 2009 Investigations Initiated, The International Trade Administration (A Subdivision Of The Department Of Commerce) Imposed Countervailing Duties On Chinese Prestressed Steel Wire Strand. According to the ITA, two anti-dumping investigation began on Jun 23, 2009 reltated to prestressed concrete steel wire strand. They resulted in duty orders enacted on July, 23 2010. [ITA, Viewed 2012]

MEMO: What’s Romney Hiding?

To: Interested Parties From: Rodell Mollineau, President of American Bridge 21st Century Date: 9/22/2012 RE: What’s Romney hiding with his tax summary?

American Bridge previously presented a list of things that Mitt Romney could be hiding, but below are just three of the biggest questions raised by Friday’s incomplete disclosure.

VIDEO: Romney's Cayman Daydream

Wonder what was going through Mitt Romney's head when Paul Ryan went off script and bashed tax shelters for the wealthy during their 60 Minutes interview? American Bridge president Rodell Mollineau said, "Paul Ryan is off to a rough start, and not just because he's less popular than Sarah Palin or Dick Cheney. In one simple thought, Ryan both embarrassed Mitt Romney and spouted falsehoods about the Republicans' agenda. In truth, the Romney-Ryan plan not only fails to eliminate loopholes and giveaways, it places a heavy burden on the middle class by lowering tax rates for multimillionaires like Mitt Romney to less than 1%."

MEMO: Abel Maldonado’s False Equivalency On Tax Delinquency

To: Interested Parties From: Ty Matsdorf, American Bridge 21st Century RE: Abel Maldonado’s False Equivalency On Taxes Date: 8-7-2012 Over the last couple of days, Abel Maldonado’s rampant abuse of the tax system and his IRS delinquencies have resurfaced in the media. While his abuses have been so longstanding that they may seem to be “old news,” it is worth remembering just how egregious they are. But first, as the issue of taxes has become a flash point in his Congressional race, it is important to dispel an emerging narrative: that both candidates in the race “have tax troubles.” Saying this is like saying Gabby Douglas and I are both gymnasts because I did a half-somersault while falling out of bed this morning. According to media reports, Congresswoman Capps had a clerical error that was immediately corrected upon discovery. Lt. Gov. Maldonado on the other hand abused the tax code over the course of several years, and still to this day hasn’t paid the more than $4 million he and his company owe in taxes. A quick refresher on the Maldonado record is after the jump.

Richard Mourdock Can’t Seem To Make Up His Mind On Indiana Jobs.

We are all well aware of Richard Mourdock’s attempt to cripple the Indiana economy and destroy thousands of jobs by suing to block federal assistance to Chrysler. But when campaigning in South Bend, he seems to have suddenly turned over a new leaf. He is now bemoaning the loss of 24,000 jobs and $1.1 billion dollars that would happen as a result of the sequester cuts of defense spending. Mourdock’s apparently forgotten that he claimed government doesn’t create jobs. And he thinks entire branches of the military should be eliminated. And he doesn’t consider it his job to protect Hoosier jobs. So does Richard Mourdock care more about protecting government jobs or dramatically slashing the federal budget? Or is he really most interested in saying whatever it takes to get elected? Mourdock Backed Away From Sequester Cuts To Pentagon Citing Job Loss. According to the South Bend Tribune, “When the congressional "supercommittee" failed last fall to agree on a plan to reduce the federal deficit by $1.2 trillion over 10 years, it set in motion a default plan for cutting spending. The plan calls for $1.2 trillion in across-the-board cuts, including $600 billion from defense programs, that will start taking effect Jan. 2. Richard Mourdock, the Republican state treasurer running for one of Indiana's seats in the U.S. Senate, believes government needs to be smaller and less expensive. But, during a campaign stop earlier this week in Mishawaka, he warned against allowing the default plan to take effect… Mourdock said the defense cuts would lead to the loss of nearly 24,000 jobs in Indiana and a $1.1 billion hit to the state's economy. He mentioned that companies such as AM General and Honeywell would be affected in the South Bend area.” In addition, “Mourdock said there might be reasonable spending cuts to make in the Department of Defense, but the default reduction of $600 billion would be disastrous.” [South Bend Tribune, 7/25/12]  Mourdock Said Government Doesn’t Create Jobs. Mourdock said, “Congress doesn't create any jobs. There are a bunch of private sector companies who want to create those jobs. The fact that we have congressmen of either party claiming they created jobs is just false. There job should be to keep government at its more limited purpose so the private sector can create jobs.” [AB 21 Tracking Footage, 2/15/12] Mourdock Asserted That “I Didn’t Take A Pledge That I Would Support Every Job In Indiana,” Had No Regrets About Position. “‘I didn't take a pledge that I would support every job in Indiana under whatever means it takes to do it,’ Mourdock said. ‘The oath I took said I would support the laws of Indiana and support the Constitution of the United States. Constitutional rights for people for which I had a fiduciary responsibility were being violated, and I had no choice to do what I did. I certainly have no regrets.’” [Indianapolis Star, 10/19/10] Mourdock Question The Necessity Of All The Branches Of The Armed Services. According to the National Review, “‘here’s always going to be a lot of duplication,’ Mourdock said. ‘We look today at the historical setup of Army, Navy, Air Force, Marines, Coast Guard. There’s a lot of duplication and bureaucracy right there. In the 21st century is that necessary? I’m not sure that it is.’” [National Review, 4/30/12]

MEMO: Questions Romney Can Clear Up With His Tax Returns

TO: Interested Parties FROM: Rodell Mollineau, American Bridge 21st Century DATE: July 16, 2012 RE: Questions Romney can clear up with his tax returns Mitt Romney has been trying very hard to run out the clock on this campaign without providing a complete and accurate picture of his finances. He has released his returns for 2010 and [whatever he releases], but that does not provide a full accounting of his financial priorities and practices. For example, from his limited release to this point, very serious questions need to be answered about his offshore holdings, trusts, and ongoing profit from his private equity career. He is also taking great pains to distance himself from his involvement with Bain Capital post-February 1999, but yet refuses to release his tax returns over that period which would prove his veracity on the subject. Romney’s father started the tradition of releasing his taxes by providing 12 years. Romney himself provided 23 years of taxes when he was being vetted for the vice presidential slot under McCain (and losing out to Sarah Palin). So, it should be easy for Romney to put a number of questions to rest by simply providing the public with his income taxes just as he provided them to John McCain. Here are the questions that could be easily answered through a full and transparent disclosure.

MEMO: Questions Romney Can Clear Up With His Tax Returns

TO: Interested Parties FROM: Rodell Mollineau, American Bridge 21st Century DATE: July 16, 2012 RE: Questions Romney can clear up with his tax returns Mitt Romney has been trying very hard to run out the clock on this campaign without providing a complete and accurate picture of his finances. He has released his returns for 2010 and [whatever he releases], but that does not provide a full accounting of his financial priorities and practices. For example, from his limited release to this point, very serious questions need to be answered about his offshore holdings, trusts, and ongoing profit from his private equity career. He is also taking great pains to distance himself from his involvement with Bain Capital post-February 1999, but yet refuses to release his tax returns over that period which would prove his veracity on the subject. Romney’s father started the tradition of releasing his taxes by providing 12 years. Romney himself provided 23 years of taxes when he was being vetted for the vice presidential slot under McCain (and losing out to Sarah Palin). So, it should be easy for Romney to put a number of questions to rest by simply providing the public with his income taxes just as he provided them to John McCain. Read the full memo after the jump.