Tag Archives: 2008

Mitt Romney raised taxes by $740 million while he was governor of Massachusetts

Deroy Murdock explains in this Scripps Howard News Service article.

Excerpt:

Hot on the heels of his eight-vote Iowa-caucus landslide, Willard Mitt Romney is crisscrossing New Hampshire before Tuesday’s key primary. Romney is masquerading as a limited-government, free-market executive from next-door Massachusetts. From the Golden Gate to the Granite State, voters should greet Romney’s impersonation with a quarry full of skepticism.

In fact, Romney increased taxes by $309 million, mainly on corporations. These tax hikes, described by Romney apologists as “loophole closures,” totaled $128 million in 2003, $95.5 in 2004, and $85 million in 2005. That final year, Romney proposed $170 million in higher business taxes, the Boston Globe reports. However, the Bay State’s liberal, Democratic legislature balked and only approved an $85 million increase.

“Tax rates on many corporations almost doubled because of legislation supported by Romney,” Boston Science Corporation chairman Peter Nicholas explained in the January 6, 2008 Boston Herald. Also, Romney raised the tax on subchapter S corporations owned by business trusts from 5.3 percent to 9.9 percent — an 85 percent hike.

“Romney went further than any other governor in trying to wring money out of corporations,” the Council on State Taxation’s Joseph Crosby complained.

Romney also created or increased fees by $432 million. He was not dragooned into this by greedy Democratic lawmakers; Romney himself proposed these items. In 2003 alone, Romney concocted or boosted 88 fees. Romney charged more for marriage licenses (from $6 to $12), gun registrations (from $25 to $75), a used-car sales tax ($10 million), gasoline deliveries ($60 million), real-estate transfers ($175 million), and more. Particularly obnoxious was Romney’s $10 fee per Certificate of Blindness. Romney also billed blind people $15 each for discount-travel ID cards.

While Romney can take credit for a $275 million capital-gains tax rebate, property-tax relief for seniors, and a two-day, tax-free shopping holiday, he also must take responsibility for signing $740.5 million in higher taxes, plus that $85 million in business taxes that he requested and legislators rejected.

“Romney did not even fight higher death-tax rates,” notes former California State Assembly Minority Whip Steve Baldwin, a Romney critic. “When the (Massachusetts) legislature considered this issue, Romney’s official position was ‘no position.’ This echoed Barack Obama’s ‘present’ votes in the Illinois State Senate.”

As Romney drained his constituents’ pockets, the Public Policy Institute of New York’s Cost of Doing Business Index rated Massachusetts in 2006 as America’s fourth costliest state in which to practice free enterprise. The Tax Foundation dropped Massachusetts from America’s 29th most business-friendly state to No. 36. The Tax Foundation also calculated that, under Romney, Massachusetts’ per-capita tax burden increased from 9.3 percent to 9.9 percent. In real dollars, the Romney-era per-capita tax burden grew by $1,175.71.

As if impoverishing his own taxpayers were not bad enough, Romney’s March 5, 2003 signature raised taxes on non-residents retroactive to that January 1. Perpetrating taxation without representation, Romney’s law declared that, “gross income derived from… any trade or business, including any employment,” would be taxable, “regardless of the taxpayer’s residence or domicile in the year it is received.”

Consequently, according to data furnished by the Massachusetts Department of Revenue, between 2002 and 2006, New Hampshire residents who work or do business in the Bay State shipped Massachusetts $95 million above what they paid when Romney arrived. The average tax paid by New Hampshirities to Massachusetts grew by 19.1 percent, from $2,392 in 2002 to $2,850 in 2006.

Romney has a pro-abortion record and pro-gay-marriage record. Not only did he pass Romneycare in Massachusetts, but now we know that he also raised taxes. Why is he running as a Republican? I don’t see anything in his record that would cause me to believe that he is a Republican.

You can see Mitt Romney explaining all of his liberal views in his own words in these videos.

Mitt Romney raised taxes by $740 million while he was governor of Massachusetts

Deroy Murdock explains in this Scripps Howard News Service article.

Excerpt:

Hot on the heels of his eight-vote Iowa-caucus landslide, Willard Mitt Romney is crisscrossing New Hampshire before Tuesday’s key primary. Romney is masquerading as a limited-government, free-market executive from next-door Massachusetts. From the Golden Gate to the Granite State, voters should greet Romney’s impersonation with a quarry full of skepticism.

In fact, Romney increased taxes by $309 million, mainly on corporations. These tax hikes, described by Romney apologists as “loophole closures,” totaled $128 million in 2003, $95.5 in 2004, and $85 million in 2005. That final year, Romney proposed $170 million in higher business taxes, the Boston Globe reports. However, the Bay State’s liberal, Democratic legislature balked and only approved an $85 million increase.

“Tax rates on many corporations almost doubled because of legislation supported by Romney,” Boston Science Corporation chairman Peter Nicholas explained in the January 6, 2008 Boston Herald. Also, Romney raised the tax on subchapter S corporations owned by business trusts from 5.3 percent to 9.9 percent — an 85 percent hike.

“Romney went further than any other governor in trying to wring money out of corporations,” the Council on State Taxation’s Joseph Crosby complained.

Romney also created or increased fees by $432 million. He was not dragooned into this by greedy Democratic lawmakers; Romney himself proposed these items. In 2003 alone, Romney concocted or boosted 88 fees. Romney charged more for marriage licenses (from $6 to $12), gun registrations (from $25 to $75), a used-car sales tax ($10 million), gasoline deliveries ($60 million), real-estate transfers ($175 million), and more. Particularly obnoxious was Romney’s $10 fee per Certificate of Blindness. Romney also billed blind people $15 each for discount-travel ID cards.

While Romney can take credit for a $275 million capital-gains tax rebate, property-tax relief for seniors, and a two-day, tax-free shopping holiday, he also must take responsibility for signing $740.5 million in higher taxes, plus that $85 million in business taxes that he requested and legislators rejected.

“Romney did not even fight higher death-tax rates,” notes former California State Assembly Minority Whip Steve Baldwin, a Romney critic. “When the (Massachusetts) legislature considered this issue, Romney’s official position was ‘no position.’ This echoed Barack Obama’s ‘present’ votes in the Illinois State Senate.”

As Romney drained his constituents’ pockets, the Public Policy Institute of New York’s Cost of Doing Business Index rated Massachusetts in 2006 as America’s fourth costliest state in which to practice free enterprise. The Tax Foundation dropped Massachusetts from America’s 29th most business-friendly state to No. 36. The Tax Foundation also calculated that, under Romney, Massachusetts’ per-capita tax burden increased from 9.3 percent to 9.9 percent. In real dollars, the Romney-era per-capita tax burden grew by $1,175.71.

As if impoverishing his own taxpayers were not bad enough, Romney’s March 5, 2003 signature raised taxes on non-residents retroactive to that January 1. Perpetrating taxation without representation, Romney’s law declared that, “gross income derived from… any trade or business, including any employment,” would be taxable, “regardless of the taxpayer’s residence or domicile in the year it is received.”

Consequently, according to data furnished by the Massachusetts Department of Revenue, between 2002 and 2006, New Hampshire residents who work or do business in the Bay State shipped Massachusetts $95 million above what they paid when Romney arrived. The average tax paid by New Hampshirities to Massachusetts grew by 19.1 percent, from $2,392 in 2002 to $2,850 in 2006.

Romney has a pro-abortion record and pro-gay-marriage record. Not only did he pass Romneycare in Massachusetts, but now we know that he also raised taxes. Why is he running as a Republican? I don’t see anything in his record that would cause me to believe that he is a Republican.

You can see Mitt Romney explaining all of his liberal views in his own words in these videos.

Mitt Romney

Mitt Romney’s tax returns would make him lose the election to Obama

Wall Street Banks contributions to Mitt Romney
Wall Street banks make huge contributions to Mitt Romney

From The Hill. (H/T Riehl Worldview)

Excerpt:

It’s important not to overstate the perils Romney faces. He is still by far the best-funded candidate in the race. He has a state-by-state infrastructure that is the envy of his rivals. Even if he were to lose Saturday’s South Carolina primary, he would  likely remain the overall favorite to clinch the nomination.

But the procession of errors has been striking nonetheless — and it has raised concerns among many in the GOP about his vulnerabilities in a general election contest with President Obama.

Most of Romney’s awkwardness has revolved around questions about his wealth. During a heated exchange during a debate last month, he ill-advisedly offered to bet Perry $10,000 that his own account of what he had written in one of his books was correct. Perry declined, saying he was “not in the betting business,” but the episode heightened perceptions that Romney is out of touch with most Americans.

The same pattern keeps cropping up. Earlier this week, he was asked about the effective tax rate he pays on his income, and managed to injure himself twice in the space of a few sentences. First, he acknowledged that his tax rate was “probably closer to the 15 percent rate than anything.” He then added: “I get speaker’s fees from time to time, but not very much.”

The first claim was almost certainly true. Romney’s income is believed to come chiefly from long-term investments rather than earned income, and that would indeed make him liable for capital gains tax levied at a 15 percent rate. But it still places the multimillionaire in a more lightly taxed band than many voters — something which Newt Gingrich tried to take advantage of with his mocking proposal to introduce a “Mitt Romney 15 percent flat tax.”

Perhaps even worse was Romney’s “not very much” comment. His latest financial disclosure form, which covered the period from February 2010 to February 2011, revealed that he earned $374,327 for speeches. The sum is approximately seven times the median household income in the United States.

Those remarks had been preceded by a televised debate at which he gave a muddled response about whether he would release his tax returns.

Romney flubbed the tax-return question for a second time at a debate last Thursday, eliciting boos from the crowd when he said he would “maybe” follow the example of his late father, former Michigan Gov. George Romney, who released 12 years of tax returns when running for the presidency in 1968.

Romney’s mangled syntax on these occasions seems symptomatic of a wider personal unease in discussing his finances. GOP consultants say he needs to get over that discomfort if he is to prove an effective candidate.

Another concern that I have is that Mitt Romney has $20-100 million dollars in his retirement account.

Excerpt:

Like many Americans, Mitt Romney has an individual retirement account. Unlike most Americans, Mr. Romney has between $20.7 million and $101.6 million in it, a big chunk of his fortune.

Experts on estate planning said it is highly unusual to accumulate such a considerable sum in an IRA, an investment vehicle restricted by annual contribution limits. It appears that Mr. Romney’s grew so large mostly because it holds investments in Bain Capital, the private-equity firm he helped start.

[…]Mr. Romney is one of the richest presidential candidates in decades, and his GOP opponents increasingly are trying to turn wealth into a liability. President Barack Obama is expected to do the same if the former Massachusetts governor wraps up the nomination. Mr. Romney’s tax liability has emerged as a debating point in the GOP nominating contest, a proxy for a bigger argument over who should shoulder the nation’s tax burden.

In recent days, Mr. Romney’s rivals have pressed him to release his tax returns. They have attacked him for his role at Bain Capital, the source of his wealth. When Mr. Romney revealed Tuesday that his effective federal income-tax rate had been about 15% in recent years, both the White House and GOP candidates used the number as a cudgel.

[…]Michael Whitty, a lawyer at Vedder Price in Chicago who advises private-equity executives, said it is impossible to determine from Mr. Romney’s public disclosures how the IRA grew so large. Based on its listed holdings, which include many Bain Capital vehicles, Mr. Whitty theorizes Mr. Romney may have invested in Bain funds through a 401(k)-type plan, or directed some of his Bain holdings into such a plan, which he then rolled into an IRA.

How is he going to explain that? This might be one of the reasons why Romney is not releasing his tax returns. He needs to be pounded on this by Gingrich and Santorum until he drops out – we can’t afford to choose a nominee who has no hope of beating Barack Obama.

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