If Mitt Romney wasn’t finished as a viable presidential contender before Tuesday, he most certainly was, in my opinion, after his comments on taxes and income that day in Greenville, S.C.
Asked directly what his effective tax rate was, Romney said:
“It’s probably closer to the 15 percent rate than anything. For the past 10 years, my income comes overwhelmingly from investments made in the past, rather than ordinary income or earned annual income. I got a little bit of income from my book, but I gave that all away.”
That was bad enough because he pays a federal tax rate much lower than most salaried workers. (For example, a married couple filing jointly pays at a rate of 25 percent tax rate for taxable income above $69,000 in wages. Obama reported paying an effective tax rate of 26 percent on his 2010 income, the majority of which came from sale of his books.)
But Romney went on to really put his foot in it.
Finishing off the comment, he said, “I get speakers’ fees from time to time, but not very much.”
Not very much?
Well, according to his personal financial disclosure, from February 2010 to February 2011, Romney earned $374,327 in speaking fees.
(Unfortunately, if you only read the print version of The Kansas City Star, you wouldn’t know about the uproar over Romney’s speaking fees because it wasn’t included in The Star’s three paragraph “campaign roundup” on Page 2 Wednesday.)
In its front-page report on the story, The New York Times said that $374,000 “would, by itself, very nearly catapult most American families into the top 1 percent of the country’s earners.”
In December, The Times reported that Romney, with an estimated family fortune of $190 million to $250 million, “is among the wealthiest candidates ever to run for president.”
In that story, The Times also said that after Romney left Bain Capital, the hugely successful private equity firm he helped start, “he negotiated a retirement agreement with his former partners that has paid him a share of Bain’s profits ever since, bringing the Romney family millions of dollars in income each year and bolstering the fortune that has helped finance Mr. Romney’s political aspirations.”
The ever-prescient Times went on to say that since Mr. Romney’s payouts from Bain “have come partly from the firm’s share of profits on its customers’ investments, that income probably qualifies for the 15 percent tax rate reserved for capital gains, rather than the 35 percent that wealthy taxpayers pay on ordinary income.”
So there’s a thumbnail sketch of the man who’s going to try to beat Obama by contending that average Americans will do better under a Romney presidency than they have under Obama.
Talk about a disconnect. Voters are going to listen to that pitch, consider the source and flee into Obama’s arms.
I can’t imagine how Romney is going to be able to convince ordinary, working Americans that he should be their guy.
I’m going to predict that he’s ultimately going to lose the votes of the majority of the millions of people who don’t read newspapers, proclaim they don’t care about current events and just want to bitch about how bad Obama is. They can cover their ears and hum, but osmosis will do the job.
Immediately after Romney is nominated — if he survives the Gingrich mauling — he might match or go slightly ahead of Obama in the polls. But after that, I see him slipping steadily downhill.
I can’t remember a presidential campaign where one major candidate had so much working against him before the general-election campaign got underway.
Understandably, the Democrats are drooling.
The Times’ story on Wednesday quoted Bill Burton, a spokesman for Priorities USA Action, a “super Pac” supporting Obama as saying, “We won’t be waiting until he (Romney) reveals his returns in April to remind voters that Romney’s tax policy would keep taxes low for millionaires like himself, putting a burden on the middle class.”
If Romney is the Republican nominee, you’ll see me smiling next summer and fall…I’ll be much more worried, however, if Obama has to run against Newt and Callista.
There’s a gal that will probably appeal to the rednecks, whose votes the Republicans can’t win without.
JimmyCsays: At the juncture of journalism and daily life in KC 
At least Mitt earned his money unlike John Kerry who married into his. Didn’t hear too much whining when John Kerry registered his yacht in Rhode Island instead of his home state of Massachusetts in order to avoid taxes.
How about an IRS audit of Operation PUSH or the Rainbow Coalition. Al Sharpton and Charlie Rangle still have financial skeletons they are pushing back into the closet.
Bill Clinton has earned millions in speaking fee’s. Where’s the outrage?
Just like that icon of liberalism Warren Buffet who lives off of capital gains, Mitt’s money was taxed at an ordinary rate of 35% the first timed he earned it. Capital gains is really taxing money you earned a second time.
And as for the Bain layoffs? Kinda like what the government did when it bailed out the banks and car companies. Methinks some plants and banks got closed and some jobs were lost in that debacle. It also looks like Solyndra is just the tip of the iceberg at the Energy Department. Looks like the total loss with all the other investments may be closer to 3 BILLION dollars.
I agree Mitt’s an idiot, but his stupidity comes from a real lack of being able to explain what appear to be complex financial dealings in a real simple way that people can understand and relate to.
So far he’s not been found to have done anything illegal with his investments, shelters or havens. Not much different than members of congress who can trade stocks on inside information that the rest of us can’t. In either case it may not be “right” but it sure isn’t illegal. Lots of laws need to be changed and loopholes closed, many of which were created by democrat legislation.
Like I said previously, I’m prepared for four more years of Obama and the civil, disobedience, unrest and hopefully war it will bring. You might wanna seriously consider that possibility when you pull the lever.
You’re right Smartman: Kerry was a phone baloney candidate who was unable to connect with average Americans. That’s the main reason he lost. We’re talkin’ losers here.
Bill Clinton? Are you kidding me? He grew up in Hot Springs, Ark! That’s as down home as you get; I don’t care how much you make in speaking fees.
Changing the subject by diverting the topic from Romney, to Clinton(old news), to Kerry(old news), to Rainbow or PUSH(old news) is a weak response from “Smart”?man.
Capital gains? The ‘gain’ is new. Tax it.
As far as whether a particular action is legal (see above), If your lobbyists can get something made legal by federal law, you can do it. They got the banking laws changed a few years ago so that former crimes are now legal actions.
Remember Dubya saying that what “Kenny boy” did at Enron wasn’t illegal and therefore it was alright?
If the Republicans had a halfway decent candidate Obama wouldn’t have a chance of winning. John AND Judy Schofield
The Schofields, parents of former outstanding KC Star reporter Kate Beem, throw down the gauntlet. (And John taught math to both my kids at Visitation. Thanks, John; Charlie’s majoring in physics now at the University of Tulsa.)
First, Jim, while this has-been reporter who just happened to find himself at the Joplin IHOP between 5:30 and 6:00 p.m. on Sunday, May 22 (the day after his father’s funeral service, I might add), continues to visit the KPA and MPA web sites fairly regularly to see if there still might be some demand for his God-given talents, I haven’t been in the habit of checking your site as often as I should.
As posted earlier, I enjoyed your report on Mi-Ai Parrish’s appearance on the Plaza three days ago, complete with a decent photo, and it’s nice to know that when I do check your site I don’t have to worry about encountering a whole slew of pictures of scantily clad women mixed in with the latest scuttlebutt, unlike a certain local blog site that shall remain nameless. (I guess that peddler is still in town, but I don’t know.)
Second, as for The Star’s coverage of the current presidential campaign, given the shrinking news hole, I really don’t expect to find a lot of details in the print edition, but I’m glad the NY Times was at least able to go into Mr. Romney’s financial situation in some depth. In many respects America has become a “bread and circuses” society, so it’s really no wonder that so many things people should know about are either going unreported or, if reported, virtually ignored. Too many guys would rather pop a beer, kick back and watch football, and too many gals would rather immerse themselves in American Idol week after week. For our democracy to survive, we certainly need an informed citizenry, but the Supreme Court sure didn’t help matters when it ruled that corporations are “people” and are thus free to generously contribute to the candidates most likely to do their bidding while filling the airways with their propaganda. Someone good and honest like Abraham Lincoln would never get elected in today’s political climate, What a shame!
No diversion of topic. Just a request for consistency in reportage and faux moral outrage.
The grim reaper got to Ken Lay. That’s a win for all humanity.
As for tax strategy, eliminate capital gains but get NASTY on the death tax at say 80% on anything over two million dollars. The USA made it possible for you to become incredibly wealthy, rightly or wrongly, legally or not, so when you assume room temperature we get all your cash and assets. I’d also earmark those confiscated funds for debt reduction only.
What Kenny boy did was LEGAL. That, in and of itself, does NOT make it right, moral or ethical. We’re going to need to involve Plato and Aristotle to split those hairs.
I’m sure glad the Nicholses came through the tornado unscathed, Rick.
I share your concerns about our less-informed populace, and I agree with you about an Abe-Lincoln-like candidate. Little chance. We all would like to think America’s best days are ahead of us, but the looking glass is pretty worrisome right now.
Jimmy.
Given the nature & content of Smartman’s contributions I understand why he hides behind an alias. With today’s news of falling unemployment, a rising DJIA and Mitt’s offshore tax havens, Smartman must wish the Republican candidate could run against John Kerry again. But he should be careful what he wishes for, there’s still a chance that it could be an Obama / Clinton ticket come August.
Your example of The STAR’s failing coverage of hard news illustrates what the former KC Times managing editor, Tom Stites, is now defining as a “news desert.” Check out his new project at banyanproject.com.
Thanks for the shout out, Brian. I’m too busy getting instructions from Alex Jones right now to respond appropriately.
smartman.
Yesterday on NPR (Easy buddy, hang in there…), there was a detailed explanation of Mitt’s taxes, how and why he pays the 15%.
He has done nothing illegal. Experts (?) on NPR, made the case, that the 15% tax rate that he pays, on investments made, falls under laws that were designed for people who put there OWN money at risk, not the money of others. A classic loophole, or so it would seem. The money he (Mitt) makes, is 15% off of the money of investors money invested, there in lies the Bad publicity he is going to receive.
In addition, his claims for the creation of jobs, over a “Hundred Thousand”, seem to be, under scrutiny, specious and disingenuous.
Although his backing of Staples, did indeed create 90,000 jobs, his record with Bain and the previous company was that of a member of a company that practiced what he now calls “Creative Destruction”.
Bain rips up companies, then sends jobs overseas and sells off assets. He in no way, provided a NET gain of jobs in his state.
I am a Ron Paul guy, so this is just information I am passing along, and of course you should consider the source, NPR.
However, there is no question that this information can be parsed by the average guy in the street, so that a straight line reference from Mitt’s activities and his presumed agenda in office, will be correctly, or, incorrectly assumed by that same average guy in the street.
Bain will be the bane of Mitt’s campaign.
Newt is also unelectable for anything. The ongoing story of his desertion of his cancer ridden wife, on her deathbed, for another younger model, during his push for the impeachment of Clinton for similar peccadilloes, is hypocrisy defined.
Don’t get me wrong, I loved Newt destroying Juan Williams in the debate, but I think Fitz is right, the Dems gotta be jumpin for joy at the list of Republican Candidates right now.
Once again, I really encourage you to listen to the NPR program from yesterday, it is a harbinger of the coming attacks on Mitt.
The dog hunts buddy, the dog hunts.
BTW, here is the “Newt Cancer Story”.
http://www.salon.com/2011/03/08/gingrich_divorce_hospital_cancer/
Oops, thought I already did this–
http://www.npr.org/2012/01/19/145451104/q-a-why-such-a-low-tax-rate-for-romney
Thanks Chuck. I’ m up to speed on Mitt’s issues. Whereas Bill Clinton gave us the brilliant, “it depends on what the definition of ‘is’ is,” Mitt is a complete and total buffoon. His lack of effective communication skills scares the hell out of me. Newt can assuage all his guilt under the headline of his conversion to Catholicism. Jesus and Rick Perry may buy it. I don’t.
Prayers have been sent. Hopefully God and Gov. Christie will answer.
On the flip side of all of this are the donations made by Bain and Bain executives to democrats in the election cycles since 2008. You’re not gonna hear much about that in the mainstream.
I don’t have an issue with media bias. I do have an issue with people who fail to acknowledge that it exists on either end of the spectrum.
The new status symbol in 2012 is not a new Ferrari in your driveway, it’s 10,000 rounds of ammo and two months worth of food in your basement.
Peace through strength. Trust but verify.
Great to see KC’s two primo commenters exchanging ideas right here on JimmyCsays. We’re on the fringe of show business, readers!
Jimmy.
Thanks for the corrections of Tom Stites vita.
No problem, Brian…I took a quick look at his website yesterday but got interrupted when I was on the linkk to the banyan tree. I’ll get back to it.
Thanks for reading and commenting.
Fitz,
You say that you can’t imagine how Romney will appeal to the ordinary working class folks. I can. He will do what all other pandering Republican politicians do_ speak loudly about God, guns, gays and abortion. Sadly, that strategy has worked quite well in this country and I’m sure it will work well in November.
Well, let’s see, Jim, we’ve now got a smiling Newt and Callista just above the nameplate in the Sunday Star, enjoying the moment in South Carolina’s Winner’s Circle (just had to make a reference to horse racing given your Kentucky connections). At any rate, this is the same Newt who recently bashed the press while some of his adoring fans eagerly applauded. It seems he wants it both ways: good press when the going is good but a conspicuously absent press (a la Jack Kennedy) when he’s up to some hanky-panky. Well, it shouldn’t work like that for any of them on either side of the aisle. Say what you want about Bob Griffin (he was guilty of bad judgment if nothing else back in the ’90s), but at least he didn’t dump his ailing wife.
I’m afraid, Rick, that his anti-media, anti-elitism theme will catch hold with the very people who will suffer most under a Republican presidency — hourly wage-earners who are clinging for dear life to what’s left of the lower-middle class. Most of them just don’t understand that Newt, Rush and Co. would do everything they could to make the rich richer and widen the gap between the haves and the have-nots. He’ll whip them into a foment about “the food-stamp President” whose color and helping-hand politics they don’t like.