While around the country, many Republican primary voters are up in arms that Mitt Romney only paid about 13 percent of his income in taxes last year, in Kansas, Governor Sam Brownback is pushing a proposal that would not only benefit wealthy Kansans but raise taxes on the state's poorest residents. A new report released yesterday argues that the plan will benefit some large corporations but fail to create jobs.
The plan gets rid of a number of tax deductions—including those for home mortgages and charitable giving. It also takes away the earned-income tax credit and food-sales tax rebate. As the AP noted last week:
Mitt Romney has now disclosed that he paid only 14.5 percent of his reported income in federal income taxes in 2010. That’s no surprise. My group, Citizens for Tax Justice, predicted as much last fall, based on Romney’s previous disclosure that almost all of his 2010 income came from capital gains and dividends taxed at the low 15 percent top rate.
Newt Gingrich insists that this is not fair. Touting his own “flat tax” proposal on January 17, Newt said, “I think we ought to rename our flat tax, we have a 15 percent flat tax, so this would be the ‘Mitt Romney flat tax.’ All Americans would pay the rate Mitt Romney paid. I think it’s terrific.”
Mitt Romney’s newly released tax returns, showing that he paid taxes in 2010 at a rate of just 13.9 percent on income of $21.6 million, should provide ammunition for President Barack Obama’s newly rediscovered populism. Obama is on record supporting a “Buffett Rule,” that the boss should pay at least the same tax rate as the help.
In the watered down economic dialogue of 2012, a flat tax rate rather pitifully passes for the progressive position. Not so long ago, progressives were of the view that the more money you made, the higher your rate should be. The tax schedule should be, well, progressive. The original presidential sponsor of this concept was that Bolshevik, Theodore Roosevelt.
Although Newt Gingrich has dominated the headlines since Saturday night, what happened in the South Carolina primary is less about Gingrich’s rise than it is about Mitt Romney’s fall. The right's determination to find anyone other than Romney—illustrated over the last eight months by the hot flashes of support for Michele Bachmann, Rick Perry, and Herman Cain—has become desperate to the point that evangelicals supported a twice-divorced man who, by the account of one of his discarded spouses, aspired to manage a small harem. Moreover, they’re so frantic to be rid of Romney that they implicitly sanctioned Gingrich’s attacks against the former Massachusetts governor's personal financial gain.
Judging when to use tabloid stories as teaching moments on issues regarding race, gender, and class isn’t always easy. Sometimes the connection is clear, as when bloggers and activists used the Chris Brown/Rihanna blowup to raise awareness about domestic violence. Other times, a point can’t be found, no matter how hard one may try. The scandal surrounding Jay-Z and Beyoncé’s baby, recently born at at Lenox Hill Hospital in New York City, is a classic example of this sort of overreach.
The debate among the Republican candidates over Mitt Romney’s time at Bain Capital has raised again questions about whether Romney’s tenure in the “1 percent” will damage his campaign. The Obama team certainly welcomes this debate. After all, they have been attacking Romney along precisely these lines:
The day after Mr. Romney squeezed out a razor-thin victory in the Iowa caucuses, Mr. Obama’s political brain-trust trained most of its fire on him, painting him as both a Wall Street 1 percent type and an unprincipled flip-flopper.
Hungarian Prime Minister Viktor Orban. AP Photo/Tamas Kovacs
Tamas Fellegi, Hungary’s chief negotiator with the International Monetary Fund, has a tough task this week. Fellegi, a minister without portfolio in Viktor Orban’s right-wing government, is in Washington for preliminary talks with the IMF, in the hopes of setting the foundations for a new package of financial support that will prevent the country’s descent into the Hades of default. This new package, which Orban had previously stated would not be needed, was made necessary in part because of the dramatic deterioration in the economic outlook of the whole of Europe as a result of the eurozone debt crisis and the inept way it has been handled.
In The New York Times this weekend, John Schwartz asked the real question we've all had: If I can't beat 'em, how do I join 'em?
We’ve all been hearing about the 1 Percent—you know, the nation’s fat cats. ... Camping out in Zuccotti Park apparently didn’t beat them. They appear to be rather entrenched. ... Now I’m left with just this question: How do I get in on some of that sweet 1 Percent action?
He interviews experts for advice and comes to some interesting conclusions, among them:
"Why do you stay in the U.S., then?" I asked the German-born historian whose last professional job in Germany ended two years ago. Since then, she has been doing piecemeal work and relying on a much thinner social safety net in the U.S. than she would have in her country of origin. There, she'd have her family, health care, lower housing costs, and other social and economic guarantees. She had just told me how much Germany had come to life since her youth: instead of "don't walk on the grass" signs, there's a lively public culture; instead of beige houses, there's an explosion of color; instead of the grim and clenched authoritarian culture for which Germany was once famous, there's playfulness. So why stay in the U.S.?
Manchester, New Hampshire —Well, that was unremarkable.
The last presidential debate until another begins ten hours from now saw none of Mitt Romney’s challengers actually challenge him. His toughest challenge probably came from George Stephanopoulos, who asked him if his assertions on Bain Capital’s job creation were really on the level—neither Newt, Ron, Jon nor the two Ricks, confronted Romney with anything as potentially threatening to his lead.
Manchester, New Hampshire—Last night, some of Ron Paul’s younger supporters—and Ron Paul supporters are disproportionately young—held a pub crawl through the bars of downtown Manchester. During the first two hours (after which time I crawled away), about 50 largely male Paulists, behaving far too decorously for serious pub crawlers, drank and munched and yacked.
Sargeant Shamar Thomas protests against NDAA Tuesday at Grand Central Station.
Five hundred people returned to Zuccotti Park on New Year's Eve, with drums, chants of "Whose Year? Our Year!", and a tent, which they say they gave to police in exchange for entrance to the park. An hour before midnight, police and occupiers attempting to remove metal barricades around Zuccotti had a violent confrontation and, by 1:30 a.m., police had cleared activists from the park.
The December jobs numbers are good news—sort of—for the economy and the Obama re-election campaign. The economy added 200,000 new jobs, and the duration of unemployment is down slightly. Wages and hours worked are up, too. We can anticipate continuing progress between now and November.
While officials in other states struggled to balance their budgets in 2011, Governor Dannel Malloy and the Connecticut General Assembly closed a deficit of historic proportions one month early, agreeing on a mix of tax hikes and union concessions. That topped a list of unmatched legislative accomplishments: Connecticut passed in-state tuition for illegal immigrants, a transgender-rights bill, a major genetic research initiative, a bipartisan job-growth package, and the nation’s first paid sick-leave mandate.
On any given day in Washington, D.C., the city’s hotels teem with civic activity. Trade associations, lobbies, corporations seeking government contracts, lawyers looking to influence agency rules—all form a beehive of action. At last count, there were 12,200 registered lobbyists in Washington, according to opensecrets.org, and that doesn’t include the many thousands of corporate attorneys who are technically not lobbyists. Of the top-spending trade associations or issue organizations, the U.S. Chamber of Commerce leads the list with a budget of more than $46 million. Only one quasi-liberal group, the AARP, is even in the top 20.