Running Commentary

Wednesday, February 01, 2012

Romney's Tax Plan, mentioned in prior posting...

If Romney's tax plan favors the middle-class, then these figures lie. Off to the lower right are "Avg Tax Increase" which clearly show a dramatic lowering of taxes for the upper 5%, but not much of a break for the lower 80%.

Table T12-0004
Mitt Romney's Tax Plan
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2015 1
Summary Table
Cash Income Percentile2,3	Tax Units with Tax Increase or Cut 4				Percent Change in After-Tax Income5	Share of Total Federal Tax Change	Average Federal Tax Change ($)				Average Federal Tax Rate6
Change (% Points)			Under the Proposal			With Tax Cut			With Tax Increase
Pct of Tax Units			Avg Tax Cut			Pct of Tax Units			Avg Tax Increase
Lowest Quintile	13.2	-126		18.7	927	-1.4	-3.8	157		1.4	3.4
Second Quintile	29.3	-298		18.1	932	-0.3	-1.7	82		0.3	9.4
Middle Quintile	46.2	-491		11.1	792	0.3	2.6	-138		-0.3	15.6
Fourth Quintile	65.4	-903		6.6	862	0.7	8.2	-532		-0.6	18.8
Top Quintile	83.8	-8,641		5.2	1,569	3.1	94.4	-6,899		-2.3	23.4
All	42.4	-2,890		13.1	938	1.7	100.0	-1,064		-1.3	19.6
Addendum
80-90	75.2	-1,706		8.8	1,624	1.0	7.9	-1,143		-0.8	21.2
90-95	87.6	-3,075		2.8	1,255	1.6	8.7	-2,599		-1.2	22.0
95-99	96.7	-8,067		0.4	1,311	2.7	20.5	-7,477		-2.0	23.2
Top 1 Percent	99.1	-86,535		0.1	693	6.1	57.3	-82,188		-4.3	25.9
Top 0.1 Percent	99.9	-482,940		0.0	0	8.3	33.2	-464,005		-5.6	27.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 6.1 Proposal: 5.8
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current policy, proposal implements Mitt Romney's tax plan. For a detailed discussion of TPC's interpretation of Romney's plan, see http://www.taxpolicycenter.org/taxtopics/Romney-plan.cfm. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2011 dollars): 20% $19,342; 40% $39,862; 60% $69,074; 80% $119,546; 90% $169,987; 95% $242,597; 99% $629,809; 99.9% $2,868,534.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash

Romney's campaign focus & tax plans

02/01/12

CNN's Soledad O'Brien asked Romney about perceptions that he doesn't understand the needs of average Americans. In response, Romney said:

“This is a time people are worried. They're frightened. They want someone who they have confidence in. And I believe I will be able to instill that confidence in the American people. And, by the way, I'm in this race because I care about Americans. I'm not concerned about the very poor. We have a safety net there. If it needs repair, I'll fix it.

I'm not concerned about the very rich, they're doing just fine. I'm concerned about the very heart of the America, the 90, 95 percent of Americans who right now are struggling and I'll continue to take that message across the nation.”

When O'Brien followed on Romney's I'm-not-concerned-about-the-very-poor comment, the presidential candidate responded:

“The challenge right now – we will hear from the Democrat Party the plight of the poor, and – and there’s no question, it's not good being poor and we have a safety net to help those that are very poor.

But my campaign is focused on middle income Americans. My campaign – you can choose where to focus. You can focus on the rich. That's not my focus. You can focus on the very poor. That's not my focus.”

(In fact, according to the non-partisan Tax Policy Center, the largest benefits of Romney's tax plan go to the wealthy, not the middle class.)

Romney's comment about not being concerned about the poor is his latest statement that his rivals -- either Democratic or Republican -- could use to portray Romney as being out of touch with average Americans. Other examples:

· his $10,000 bet with Rick Perry (at December GOP debate)

· "I like being able to fire people," even though he was referring to insurers (at speech in New Hampshire)

· "There were a couple of times I wondered if I was going to get a pink slip" (during remarks in New Hampshire)

· saying that questions about economic inequality are "about envy" (on "TODAY" back in January)

· and the ultimate release of his 2010 tax returns, which showed him paying an effective tax rate of less than 15%.

Thursday, January 19, 2012

Caveat lector--Wiki article about the Newt...

Eighty-four ethics charges were filed against Gingrich during his term as speaker. After extensive investigation and negotiation by the House Ethics Committee, Gingrich was sanctioned $300,000 by a 395–28 House vote. It was the first time in history a speaker was disciplined for ethical wrongdoing.[Yang, John E. (August 5, 1998). "House Reprimands, Penalizes Speaker". The Washington Post: p. A1. http://www.washingtonpost.com/wp-srv/politics/govt/leadership/stories/012297.htm. ]

In January 1997, Gingrich said "I did not manage the effort intensely enough to thoroughly direct or review information being submitted to the committee on my behalf. In my name and over my signature, inaccurate, incomplete and unreliable statements were given to the committee, but I did not intend to mislead the committee."[ Clymer, Adam (December 22, 1996). "Panel Concludes Gingrich Violated Rules on Ethics". The New York Times] Most of the charges were dropped, in one case because there was no evidence that Gingrich was still violating, as of the time of the investigation, the rule that he was found to have violated in the past. [Anderson, Curt (October 11, 1998). "Ethics Committee Drops Last of 84 Charges Against Gingrich". The Washington Post. Associated Press. "The House ethics committee dropped the three remaining ethics charges against Speaker Newt Gingrich (R-Ga.) yesterday, despite finding that Gingrich repeatedly violated one rule by using a political consultant to develop the Republican legislative agenda. The ethics panel decided to take no further action because there is no evidence that 'Rule 45' violations are continuing in the speaker's office, a post Gingrich has held since 1995."] The one charge not dropped was a charge of claiming tax-exempt status for a college course run for political purposes. In addition, the House Ethics Committee concluded that inaccurate information supplied to investigators represented "intentional or ... reckless" disregard of House rules.^[Yang, John E.; Dewar, Helen (January 18, 1997). "Ethics Panel Supports Reprimand of Gingrich". The Washington Post: p. A01. http://www.washingtonpost.com/wp-srv/politics/govt/leadership/stories/011897.htm. ]

Special Counsel James M. Cole concluded that Gingrich violated federal tax law and had lied to the ethics panel in an effort to force the committee to dismiss the complaint against him. The full committee panel did not agree whether tax law had been violated and left that issue up to the IRS.^[Yang, John E.; Dewar, Helen (January 18, 1997). "Ethics Panel Supports Reprimand of Gingrich". The Washington Post: p. A01. http://www.washingtonpost.com/wp-srv/politics/govt/leadership/stories/011897.htm. ] In 1999, the IRS cleared the organizations connected with the "Renewing American Civilization" courses under investigation for possible tax violations. [Rosenbaum, David E. (February 4, 1999). "I.R.S. Clears Foundation Linked to Gingrich's Ethics Dispute". The New York Times. http://query.nytimes.com/gst/fullpage.html?res=9A0DE7D61138F937A35751C0A96F958260&sec=&spon=&pagewanted=1. ]
According to notes written by Gingrich in 1993, which were included in the House report in 1997 and published by Slate in 2011, Gingrich had a 25-year plan. [Stanley, Tim (December 9, 2011). "According to his doodles, Newt Gingrich wants to bring civilisation to the dark continent of America". The Daily Telegraph. London. http://blogs.telegraph.co.uk/news/timstanley/100123087/according-to-his-doodles-newt-gingrich-wants-to-bring-civilisation-to-the-dark-continent-of-america/.] As Gingrich's "primary mission", the notes list, "advocate of civilization", "definer of civilization", "teacher of the rules of civilization", "arouser of those who form civilization", "organizer of the pro-civilization activists", and "leader (possibly) of the civilizing forces".^{[ibid ]}According to the plan, Gingrich would write a series of books and make public appearances to present "Gingrich the historian applying the lessons of history to public life".^{[ibid ]}