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Romney May Have Paid No Federal Income Tax From 1999 to 2001

Romney May Have Paid No Federal Income Tax From 1999 to 2001


are guessing that Romney may have paid near zero federal taxes in 2009 due to losses on his investments resulting from the financial crisis. They probably have the right idea, just the wrong year.
It is true that Romney suffered capital losses on his investments in 2009 that might act to shield much of his income in that year from taxes, but he would have to be a complete idiot to allow his tax planners to file a return showing no income taxes paid just as he was gearing up for a presidential run. But, then again, we are talking about someone who waited until 2010 to close his wife's Swiss bank account.
Much more likely to this writer is that Romney probably does have one or more years in his recent history where he paid near zero taxes, but the year in question is probably not 2009. Much more likely candidates are the tax years 1999 to 2001 when he supposedly left his high paying job at Bain and accepted a smaller $275,000 salary to head the winter Olympics in Salt Lake City. It is reported that once the Olympics showed a profit, Romney ended up donating his salary to charities, thus further lowering his reported income for tax purposes.
His lower salary and loss of some board member compensation would mean less current income to shelter from 1999 to 2001. But, his tax shelters would have lost none of their potency. He was already utilizing IRAs and 401(k)s to shelter much of his investment income, possibly worth as much as $100 million today, from taxes. He was already making use of numerous off-shore tax havens in the Cayman Islands and other foreign locations and admits to having had a Swiss bank account in his wife's name. He admits that he had a trust established for his children to shelter as much as $100 million more of his wealth from taxation. And much of his income came from Bain Capital private equity investment funds located offshore so much of their profits could be deferred for ten years or limited to a maximum tax rate of 15 percent, a special tax provision only available to private equity and hedge fund managers.
Also, the leveraged buyout business took a big hit in 1999 and 2000 as the country entered a recession so he likely had significant capital losses to deduct. This was followed in 2001 by the dotcom collapse. As a large wealthy investor it is likely he was being put into numerous IPO's available only to the well-connected and many of these high-tech investments most likely soured in 2001 leading to further tax deductible capital losses.
Some may argue that someone who donates his salary to charity or has investment losses deserves to pay no taxes. But, they are missing the point. Romney's vast personal fortune of between $100 million and $200 million at the time was accreting at some 20 percent per year so how should he able to avoid paying taxes on the $20 to $40 million of dividends and interest income and profits and capital gains he must have been receiving on his investments? Donating a $275,000 salary to charity is chump change compared with avoiding taxation on tens of millions of profits each year.
Of course, some will argue that this is all just speculation. What else are concerned citizens to do when a candidate for president, running on a platform of being business smart and the man to fix the economy, refuses to tell us how he made his money and whether he paid his fair share of taxes along the way?
Some may argue that this is all legal. That our laws allow for the wealthiest to accumulate $400 million plus fortunes and pay little to no taxes. But, that is exactly the point. Who do you think is writing our tax laws? It is the wealthiest of our country that are lobbying our government for tax breaks and making large campaign contributions to elected officials to ensure these tax breaks not only continue, but are amplified and extended. And who is their boy, Mitt Romney.

John R. Talbott is a best-selling author and economic consultant to families whose books predicted the housing crash and the economic crisis. 

GOP Republican Jobs Bills Won't Actually Create Jobs, Say Economists

GOP Republican Jobs Bills Won't Actually Create Jobs, Say Economists



Erin Mershon
Erin Mershon- Huffington Post


WASHINGTON -- House Republicans routinely beat the drum about the hard work they have done in passing "more than 30 jobs bills" that are now before the Democrat-controlled Senate, going nowhere, as the economy gasps for air.
For almost a year, House Speaker John Boehner (R-Ohio) and House Majority Leader Eric Cantor (R-Va.) have plugged their jobs package at every opportunity. They regularly bring it up at press events, during floor speeches and in statements in response to just about anything related to the economy. Boehner even carries aroundin his jacket pocket a 4-by-8-inch card that lists off their jobs bills, and he encourages his members to flash their cards at campaign events.
"President [Barack] Obama and Democrats here in Congress have shown us what doesn't work: more government, more spending, more taxes don't create more jobs," Boehner said at a recent weekly briefing. "We've passed more than 30 jobs bills, including bipartisan bills expanding energy production and projects like the Keystone pipeline."
Cantor plugged the jobs bills -- and nudged Democrats to get on board with the Republican plan -- in response to the June unemployment report. "House Republicans are committed to bold, pro-growth policies and have passed dozens of bills to create jobs," he said in a statement. "We've begun to right the ship, but we will not be able to achieve long-term growth without willing partners in the White House and Senate."
The GOP jobs package, which currently includes 32 bills, represents Republicans' hallmark legislative accomplishment over the past two years. In the months ahead of the election, they will lean on it as proof of two things: that they are not the do-nothing obstructionists that Democrats paint them as, and that they are working hard to address the 8.2 percent unemployment rate.
But there's a problem with their jobs bills: They don't create jobs. At least, they won't any time soon.
In interviews conducted by The Huffington Post with five economists, most said the GOP jobs package would have no meaningful impact on job creation in the near term. Some said it was not likely to do much in the long term, either.


"A lot of these things are laughable in terms of a jobs plan that would produce noticeable improvements across the country in the availability of employment in the next four or five years," said Gary Burtless, a senior economist at Brookings. "Even in the long run, if they have any effect all, it would be extremely marginal, relative to the jobs deficit we currently have."
Mark Zandi, the chief economist at Moody's Analytics, agreed that the bills would have almost no effect on job creation in the short term, though he was slightly more optimistic about their long-term prospects.
"These kind of changes will matter over a period of three to five years," Zandi said. "It takes that long before businesses can digest changes and respond to them."
He noted, though, that legislation as narrowly targeted as the Republican package is unlikely to do much for real job creation.
"For it to show up in a meaningful way in the natural economy, you can make specific changes that could affect a specific industry or a few companies, but it's not going to make a big difference in terms of the monthly job numbers," Zandi said. "It takes some very significant changes across lots of different industries to really make a big difference."
Carl Riccadonna, a senior economist at Deutsche Bank, said some of the bills could create jobs, but that they would amount to more of an afterthought in terms of achieving broader policy goals.
"They are very narrowly targeted, and it gives the impression that maybe some of this is special interest really pursuing these, not really taking a macro view but a very, very micro focus in what the impact would be," Riccadonna said. For most of the bills in the package, "jobs are a second- or third-order effect, not the main priority."
At the heart of the GOP jobs package is a push for rolling back regulations -- and gutting environmental laws that regulate clean air and water -- to spur job growth. The House Republican Conference website makes the argument that deregulation will "remove onerous federal regulations that are redundant, harmful to small businesses, and impede private sector investment and job creation."
But economists told The Huffington Post that regulation has had a minimal impact on the unemployment rate. Their claim is backed by the Bureau of Labor Statistics, which shows that just under 16,000 jobs, or 0.4 percent, were lost because of "government regulations/intervention."
"It's just hard to believe that the paperwork requirements to starting a business represent a major impediment to starting businesses right now," Burtless said. "That's not why we had lots more business creation in the late '90s."
Joel Prakken, chairman of Macroeconomic Advisers, warned that any potential job creation from environmental deregulation could be offset by health concerns.
"If you increase employment but you have a lot more sick people, you have to ask yourself, 'What's the trade-off?'" he said. "The highest level of GDP is not necessarily the highest level of national satisfaction or national health."
Indeed, environmental advocates argue that many of the GOP proposals are more likely to kill people than create jobs.
"It won't save them jobs, it won't even save them that much money, but it is going to cause illnesses, deaths, more hospital stays or days lost because of illness,” said Scott Slesinger, legislative director for the Natural Resources Defense Council. “That's why we have all these environmental laws.”
Not all of the GOP proposals are focused on environmental deregulation. A handful call for weakening the authority of the National Labor Relations Board as a way to boost businesses' savings, which could, in theory, then be reinvested in new jobs.
But Burtless said those proposals are more likely to impact those currently working than those seeking work.
"They may weaken the ability of current workers to negotiate for better working conditions or wages. They may lessen the ability of workers who want to join unions to do so in companies that are currently unorganized," he said. "But it's just hard to believe that they create jobs in the short run."
Even one of the more popular bills in the mix -- a small business tax cut -- won't do much for job creation, some of the economists said. They argued that it's not that businesses need more money for hiring, but that they need a sufficient demand for their products.
"They know that if they hire people to produce more widgets, they won't be able to sell the widgets," Prakken said. "Giving them a tax break just increases their profits," but doesn't encourage hiring.
Riccadonna disagreed. He acknowledged that weak demand is the biggest problem facing businesses, but said the small business tax cut is still the most likely of all the GOP bills to create jobs.
"We should be focusing on small businesses and what we can do to make business conditions more favorable for them, because that's where the real turn in labor market will lie," he said. "So anything that makes life or operating conditions a little bit easier for them, that I would certainly be in favor of. That will have a meaningful jobs impact."
Ultimately, each economist was clear on one point: The GOP package is far more political than practical.
"It's game playing to try to pretend like they're doing something," said Jesse Rothstein, an economics professor at the University of California, Berkeley. "It's silly season, and so they know they have to put up something that has the label 'job creation' on it, whether or not it would work."
Boehner spokesman Michael Steel demurred when asked for a response. He reiterated that Senate Democrats are holding up their job-creation bills.
"The House has passed more than 30 jobs bills that are awaiting action in the Democrat-controlled United States Senate," said Steel. "We have passed a responsible budget that deals with our deficits and debt, a bill to replace the 'sequester,' which would be disastrous for our national security, and ... we will vote to stop the tax hike on every American taxpayer, which is scheduled for the end of this year. In short, we are acting on the American peoples’ priorities: jobs and our economy."
A Cantor spokeswoman did not return a request for comment.
For all their complaints about Senate inaction, Boehner and Cantor regularly fail to point out that the Senate has, in fact, passed nearly a dozen of Republicans' so-called jobs bills in the last two years. Eleven have already become law, and another one has passed the Senate but hasn’t been signed into law yet.
Jennifer Bendery and Michael McAuliff contributed reporting to this article.

House Republicans routinely herald the hard work they have done in passing the 30-some "jobs bills" in the slideshow below, while they antagonize the Senate for its failure to act on the measures. But economists warn that the House-passed bills won't do much to create jobs -- which Senate Majority Leader Harry Reid (D-Nev.) says is the explanation for why the bills have stalled.





The truth GOP are to blame for the USA economy failures

The truth GOP are to blame for the USA economy failures


http://www.huffingtonpost.com/jared-bernstein

Jared bernstein ....huffington post blogger

Why, you may be wondering, do politicians refuse to take the necessary fiscal steps to dislodge the unemployment rate from its elevated perch of 9.1%? Why, to the contrary, do they seem if anything intent on austerity measure that will push it in the wrong direction?

I can think of three reasons:

1) They want the president to fail;

2) They don't believe fiscal measures will work;

3) They irrationally fear a higher budget deficit, even temporarily.

Re 1, what can anyone say? If you're willilling to throw the economy under the bus to gain political advantage, you -- not the millions hurt by your actions -- should be the one who loses his job.

Re 2, I've got more sympathy for you. Folks have a hard time accepting counterfactuals -- the idea that things would have been worse absent the Recovery Act. But the evidence is at this point pretty plain to see: here, where the economy improved while the Recovery Act was in place and stumbled as fiscal stimulus come off too soon, in the UK, where austerity is clearly stifling growth, and in southern Europe as well.

Re 3, it can't be emphasized enough that temporary spending measures, even large one, are not what drive the long-term debt problem. Note how the Recovery Act -- all $800 billion of it -- adds nothing to the growth of the debt/GDP ratio starting around now. The culprit there would be the Bush tax cuts -- it's the permanent spending, not the temporary stuff that whacks you here.

I'm all for laying the groundwork to get on a sustainable budget path once the private sector is back in the business of creating jobs for people here in America. For now, the question regarding budget deficits should be: are they large enough to help pick up the slack until that moment arrives?