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Archive for January, 2012

Romney Paid Through the Nose

January 25, 2012 By: Scott Spiegel Category: Elections: 2012

Governor Mitt Romney has finally capitulated to the nation’s wealth-haters, releasing his tax records months before primary candidates typically do to quell swelling resentment fueled by Occupy Wall Streeters, left-leaning media, and boobs like Newt Gingrich, Rick Perry, and John Huntsman.  (Thanks, GOP candidates!)

Of course Romney’s forthrightness isn’t good enough for the left, who now argue that he must release a dozen or perhaps 20 years of tax records, so we can spend the next ten months scrutinizing them for rounding errors and keep the focus off President Obama’s record.

Obama-friendly journalists are suggesting Romney also release information on his complete financial portfolio, his retirement accounts, his trust funds for his wife and children, and sworn affidavits from eyewitnesses that he never cheated at Monopoly.  (When is the media going to demand that Obama release his college transcripts?)

Romney’s tax records showed apoplectic liberals and gullible mainstream media that he paid 14% federal income tax on the $42 million he earned in 2010 and 2011.

Doesn’t sound like a lot?  It’s much higher than the percentage shelled out by the 47% of Americans who pay no federal income taxes, and it’s more than the effective tax rate of 97% of Americans.

Mitt’s tax rate was lower than it otherwise might have been, in part because he lost tens of millions of dollars during the recession and carried those losses over, thus reducing his tax burden in subsequent years.  Our system handsomely rewards smart risk-taking in investment, because it’s just as likely that you’ll lose your shirt as strike it rich.

But the main reason Romney wasn’t taxed at a higher rate is that he wasn’t paying ordinary income tax.  He was paying long-term capital gains taxes, which have been levied at a preferential rate to encourage capital investment since their inception nearly a century ago.  Romney already paid the highest federal rate on the income he earned in years past, then paid again for the profits he made investing that income.

How many Occupy Wall Streeters understand that Mitt Romney paid a 14% tax rate on his long-term capital gains after he had already paid over 30% in federal taxes on the earnings he invested to acquire those gains?

Not to defend Warren Buffett, whose fabled secretary was trotted out as a campaign prop during the 2012 State of the Union address on Monday, but the reason Buffett got away with claiming he paid a lower percentage in taxes than his secretary was that he omitted that he had already paid handsomely in taxes on the income he earned and invested in capital gains.  If Debbie Bosanek ever becomes a celebrity business magnate and gets filthy rich, she’ll be forking it over to the government twice, too.

Lest we forget, all the wealth that Romney’s wise investment choices created will in turn be taxed, and the next generation of investments funded from this wealth will be taxed, and on down the line in a snowballing cycle of tax revenue generation.

The most fascinating aspect of the brouhaha over Romney’s tax returns is that it’s largely Democratic presidents who signed into law such favorable capital gains terms of which he has taken advantage—and of which they now disapprove.

Democratic presidents throughout the 20th century have certainly been less likely than Republican presidents to cut the marginal federal income tax rate.  But it’s Republicans, including Ronald Reagan, who have foolishly raised capital gains taxes again and again—admittedly often under pressure from overwhelmingly Democratic Congresses.

Richard Nixon raised the maximum capital gains tax rate from 36.5% to 39.875%, before Jimmy Carter slashed it to 28%.  Reagan raised it from 20% at the beginning of his first term to 28%, George H. W. Bush inched it up to 28.93%, and then Bill Clinton hacked it from 29.19% to 21.19%.

This ironic partisan trend wasn’t broken until the presidency of George W. Bush, the first Republican president to lower the maximum capital gains tax since it was instated under Warren Harding in 1921.  Maybe Democratic presidents lowered capital gains taxes to compensate for having raised income taxes.  But Republicans’ embarrassing record on capital gains taxes speaks for itself.

So why didn’t Romney make his tax records available to the public immediately after he was asked?  Perhaps he didn’t want to embarrass Obama.

As revealed in his War and Peace-length tax returns, Romney gave 370 times as much to charity in 2011 as Barack and Michelle Obama gave in the four years from 2000 to 2004.  By percentage of income, Romney gave 20 times as much.

Romney gave 1,000 times as much to charity in 2011 as Joe Biden did in the ten years from 1999 to 2009.

Mitt gave so much to charity in 2010 and 2011—$7 million—that it eclipsed the not-insignificant $6 million in federal income taxes he paid.

If liberals refuse to believe that high-income earners like Mitt are the ones who do the bulk of the investing in our economy, foster the largest share of job creation, and shoulder the overwhelming majority of the federal tax burden, can they at least admit that rich people are the ones who keep most charitable organizations afloat?

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South Carolina Disenfranchises Camera-Shy Voters

January 18, 2012 By: Scott Spiegel Category: Elections: 2012

Ahead of its 2012 GOP presidential primary, South Carolina is under fire for having enacted a voter identification law that would require citizens to show poll workers a photo ID before voting.  (You know—sort of like having to pay a poll tax and prove your ancestors came over on the Mayflower.)

The law is intended to curb voter fraud, which is more prevalent in South Carolina and other southern states and states with relatively small populations.  Some states’ historically corrupt local governments and proximity to the Mexican border have yielded a disproportionate incidence of voter-impersonation fraud, including non-citizens voting, ex-felons voting, and dead people voting.  Small populations increase the influence that a handful of invalid votes can have on a precinct’s outcome.

Seven states besides South Carolina require a government-issued photo ID to vote: Texas, Georgia, Tennessee, Mississippi, Indiana, Wisconsin, and Kansas.  Seven additional states require a simple photo ID: Florida, Alabama, Louisiana, Michigan, South Dakota, Idaho, and Hawaii.  Three state legislatures passed photo ID laws in 2011 but were blocked by their governors’ vetoes.  Sixteen other states require non-photo identification.

So South Carolina isn’t exactly doing something new and different.

Naturally, the Obama camp has been riling up its base by accusing Republicans of trying to disenfranchise minorities.  Last month the Obama Justice Department blocked South Carolina’s attempts to implement its law, claiming that the statute violates the Voting Rights Act of 1965—the first time the Department has interfered with a state’s voter ID requirements since 1994.  The Department is also taking its sweet time approving Texas’s recently passed voter ID law.

On Monday, Attorney General and chief racial instigator Eric Holder ginned up the controversy again at a Martin Luther King rally in Columbia, South Carolina.

Democrats use this tired old tactic time and again: Take a perfectly neutral, fair-minded policy whose originators don’t consider or mention race in the slightest, then twist it to make it look as though people who support it are bigots.  College admissions committees should be color-blind?  Racist.  Black firefighters should pass the same test as white and Hispanic firefighters?  Racist.  Voters should produce photo IDs before they vote?  Racist.

Opponents of the law argue that, since getting a photo ID costs money, the voter ID requirement constitutes an illegal poll tax.  Never mind that it’s free to get a state-issued ID in South Carolina, and that Governor Nikki Haley has supplied taxpayer-funded, free carpools to take people to pick up their free IDs at the DMV.

The Supreme Court concluded, in its 2008 rejection of a challenge to Indiana’s voter ID law, that requiring voters to obtain an ID is not an unseemly burden.  Tellingly, the plaintiff was unable to produce a single witness who couldn’t meet the voter ID requirement.  Even liberal stalwart John Paul Stevens joined the 6-3 majority and penned its consensus decision.  (In his dissent, Justice Souter wrote that the state must provide evidence of voter fraud before it can pass a voter ID law, which is like saying that a jurisdiction must provide evidence of stolen credit cards before it can pass a law against identity theft.)

Another nonsensical argument is that South Carolina is using a states’ rights position to defend its law, which it used to defend slavery and racial segregation; therefore, voter ID laws are racist.  Yet South Carolina has been battling the federal government recently over other states’ rights issues, such as ObamaCare and the NLRB’s lawsuit against Boeing for moving jobs from Washington to South Carolina.  The Palmetto State is currently ground zero for states’ rights defenses against federal overreach, and none of it has a whit to do with race.

The media has also been linking South Carolina’s efforts with all sorts of other “racially tinged” proposals emanating from the campaign trail, such as Newt Gingrich’s suggestion that children help keep their schools clean and Rick Santorum’s comment about not wanting minorities to be dependent on government.  Tied together with all of this “coded language” and “racial politicking,” the media is invoking a “climate” of intolerance among GOP nominees and prepping for a revival of the “Republicans Hate Obama Because He’s Black” campaign theme for the fall.

What all of the opponents of the statute have failed to answer is: Why will the new voter ID law specifically disenfranchise blacks?  Are African Americans unable to get driver’s licenses?  Do they not have access to hundreds of local state facilities where an employee will take their picture, put it on a card, and give them an ID?  If African Americans can register and get out to vote every two or four years, why can’t they go pick up a one-time ID?  Do Democrats not consider blacks capable of taking that step?

In response to these ridiculous criticisms, state legislatures have bent over backwards to make it easy for voters to get IDs.  In addition to Nikki Haley’s Reliable Chauffer Service, the Indiana law allows voters without IDs at the voting booth to cast provisional ballots, so long as they bring their ID cards back or get new ones in the next 10 days, or else sign a statement saying they can’t afford one.  Are Democrats insinuating that blacks can’t fill out forms?

Voting is a right—but it doesn’t take place in a vacuum, and states may use constitutional means to enforce fair, non-fraudulent voting activity on their turf.

No one’s saying we need voter ID laws in every state, or that such laws can’t vary in strictness.  But on this states’ rights issue, South Carolina has determined it needs this particular law to ensure the integrity of its elections.

We need photo IDs to buy alcohol, drive a car, fly on a plane, get a library card, rent a movie, cash a check, enter federal buildings, and collect welfare.  Many of those reviews involve verifying age, residency, credit history, or citizenship; but presenting a voter ID confirms something more fundamental—identity.  Why are Democrats so scared of voters’ having to be who they say they are when they vote?

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Dear South Carolina: Please Give Rick Perry One Last Look

January 11, 2012 By: Scott Spiegel Category: Elections: 2012

Michelle Bachmann, the most conservative and articulate 2012 GOP presidential candidate, dropped out of the race after her poor showing in Iowa last week.  Herman Cain’s disappointing withdrawal last month over spurious sexual harassment allegations suggests we won’t be discussing a flat federal income tax for at least another election cycle.  John Huntsman was a surprisingly conservative governor of Utah, and could still benefit from the shell game Republican voters have been playing with their candidates for the past six months—if voters ever notice he’s running.  Mitt Romney is an unreliable conservative; Newt Gingrich is a combustible bloviator; and Ron Paul is a nutty America-hater.

What about Rick Perry?  Last September, he was the GOP’s latest, greatest hope for about three invigorating weeks.  The only—only—reason Republican voters abandoned him in droves after his bump in the polls was his clunky and unscripted performance in the first few debates—a flaw he’s long since overcome.  Perry’s marble-mouthed tendencies have been limited thus far to one format—the presidential primary debate—and even there he’s improved dramatically, such that commentators have been gushing, “Perry had a really good night!” and “This was the best Perry debate performance so far!”

(I don’t fault Perry for not being able to remember the third agency he would close; there are so many I would shut down, I also would lose track.  When Ron Paul helpfully offered “EPA?” I would have said, “That too!”)

Perry detractors who are incessantly angling for Romney argue that the country doesn’t want another cowboy as president, but those objections are more stylistic than ideological.  I’m confident that conservatives would warm to a President Perry who repealed ObamaCare and rid us of the Commerce, Education, and Energy Departments, even if his Texas twang recalled George W. Bush’s.  As for liberals’ being driven clinically insane by another Lone Star president: Are we seriously counting that as a negative?

As RedState notes in a lengthy, thoughtful endorsement, Governor Perry snatched the Texas governorship at a time when the state was left-leaning; he has won more state elections than all the other candidates combined; and he boasts a fearsome track record as a limited-government conservative.

Perry doesn’t have Romney’s real-world business experience—we could argue whether it’s more appropriate for a president to have private or public sector experience—but he is the longest-serving governor in the nation’s second-largest state, which suggests he’s been doing something right as an executive.

Perry opponents quibble about his support for in-state tuition for the children of illegal immigrants and his introduction and retraction of an opt-out HPV vaccination for young girls—minor issues that don’t loom large in the big picture.  I’ll trade you one Romneycare for a Gardasil any day.

Some who viewed Saturday night’s debate were aghast at Perry’s heretical suggestion that we send troops back to Iraq if need be to consolidate and preserve the fragile security gains we made during our eight-year war there.  To any conservative who believes Obama removed troops from Iraq prematurely and precipitously to fulfill a campaign promise to the anti-war left, Perry’s suggestion is logical and common-sensical.  Would conservatives prefer we send troops back to Iraq in ten years to fight this war again after conditions dramatically worsen because we didn’t finish it the first time?

Perry is the only candidate who’s served in the military other than Paul, the latter of whom has more or less pledged to decimate it.  I think we can safely assume that Perry, of all candidates, would not take lightly the decision to send troops in harm’s way.

Perry’s gotten flack for calling Social Security a Ponzi scheme—it’s not; it’s much worse—and labeling the Fed’s quantitative easing program “almost treasonous.”  As for the latter, he did say “almost,” and in this era of trillion-dollar deficits, I’d wager that our greatest danger is underreacting to the federal government’s overreach, not overreacting.

Perry deserves major points for expressing “inappropriate” enthusiasm for the death penalty for aggravated violent crimes, which are particularly prevalent in his state—and would prevail even more under a liberal, soft-on-crime governor.

Perry has taken brave, “extremist” positions on abolishing the 16th and 17th Amendments to the Constitution, which would rid us of cancers like Olympia Snowe and the IRS, respectively.

Of course Perry didn’t make a dent in New Hampshire’s primary on Tuesday, where he didn’t even campaign, but with any luck he’ll make a strong enough showing in the Palmetto State next Saturday to encourage him to stay in the race.

Before Mitt kills it in South Carolina and we succumb to “Romney is the inevitable nominee” fever, please, early primary and caucus states that have yet to vote, give Rick Perry—a flawed but underappreciated candidate—one more careful look.

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Throwing “The Book” at Obama

January 04, 2012 By: Scott Spiegel Category: Elections: 2012

While the left-wing media delight over Republican 2012 presidential nominees’ slugfest in early-state caucuses and primaries in Iowa, New Hampshire, and South Carolina, some forward-thinking conservatives are engaged in a constructive plan to win the general election no matter who the nominee is.

Crafty Republican National Committee staffers are compiling a 500-page document, known informally as “The Book,” that juxtaposes direct quotes and video clips of Obama making grandiose promises with statistics on the reality of how his efforts have turned out.  The compendium, which covers 2008-2011, promises to be a virtual treasure trove of fodder for 2012 general election GOP campaign ads, chock full of sound bites coupled with cold, hard facts that will yield devastating and irrefutable attack ads.  RNC communications director Sean Spicer boasts, “We have everything he has done and said catalogued six ways to Sunday.”

Republicans tried using Obama’s words against him once before, in the 2008 general election; however, a fawning press, a weak GOP nominee, and an electorate asleep at the wheel mitigated the impact of such Obama albatrosses as “Spread the wealth around,” “Electricity rates would necessarily skyrocket,” and “A guy who lives in my neighborhood.”

The press is still sycophantic, and Republicans still need to ferret out a strong candidate from among the choices they have, but the electorate will not so easily be lulled this time.  Voters have witnessed Obama in action for three years, and they don’t like what they’ve seen.  The quotes GOP operatives amass will directly reflect Obamanomics’ failure to improve the economy.  Democrats won’t be able to argue away Obama’s words as tangential, hyperbolic, or referencing distant episodes in the past.  These words will have been spoken during his campaign and presidency, about his specific policies—and will be demonstrated time and again to be at odds with reality.

For starters, RNC staffers have documented—as revealed in a sneak preview to the Washington Post—Obama’s failed promises to bring millions of Americans out of poverty (millions more are in poverty since he took office), help homeowners get above water via his foreclosure assistance fund (the program helped a fraction of the intended number of owners), create millions of “green” jobs (the number was greatly overestimated, and his efforts overshadowed by the Solyndra bankruptcy), and lower health care premiums (which have increased under ObamaCare).  The GOP will likely nail Obama on the number of jobs his stimulus bill was supposed to create but didn’t, the failure of the stimulus bill to keep unemployment under the promised 8.0%, and the inability of our economy to rebound from the 2008 recession as it has every recession since WWII.

Republicans will censure Obama for disregarding the grand ethics standards he set regarding lobbying and transparency, and his failure to usher in greater civility, bipartisanship, and racial harmony.

Part of the ease of assembling a WikiObama derives from recent technological advances in archiving and indexing video clips.  A bigger part, though, comes from the fact that for four years, Obama hasn’t seemed to know when to shut up.

Ironically, a leader whose vaunted oratorical skills were his strongest asset on the campaign trail will likely be undone by those very words.  If Obama hadn’t aimed so high via his rhetoric, perhaps his words wouldn’t now be coming back to haunt him—but then perhaps he wouldn’t have been elected in the first place.

Had Obama’s economic and foreign policy prescriptions succeeded even moderately over the past three years, then attack ads against him might now seem churlish or petty.  Yet Obama has made so many specific promises, and failed so spectacularly to deliver on them, that pointing out the discrepancies between his assurances and his results will strike undecided voters as the only responsible thing to do.

If Obama had been a big speech-giver, but his policies had been sound—a combination that recalls Ronald Reagan—then his utterances wouldn’t have become the noose with which opponents will now hang him.

Not to be cocky about it, but the RNC’s strategy seems utterly foolproof to me.  How can Obama deny what he said on record?  And—unless economic conditions improve dramatically over the next ten months—how can the country’s circumstances fail to belie the incantations offered by candidate Hope-and-Change?

Regarding The Book, Spicer adds, “This is not an effective tool—it’s the most effective tool.  We literally have gone through and looked at this over and over again.  Survey after survey, focus group after focus group all say this is the most effective way to bring [independents] over to our side.”

It’s also the most honest and focused technique.  And GOP operatives won’t even have to revisit potshots like “57 states,” “corpse-man,” and “breathalyzer.”

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