Category Archives: Taxes

When Did It Become Patriotic To Avoid Paying Income Taxes?

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Mitt Romney has been smart and very lucky.  The son of a famous father, he has used his privileged childhood and education to make millions – often by bankrupting companies and offshoring American jobs.  To make himself even wealthier, he also offshored his money in Switzerland, Bermuda, the Cayman Islands and Luxembourg.

That allowed Romney to pay income taxes at a rate of less than 15 percent in 2010. Now insiders from Bain Capital claim that Romney didn’t pay any income taxes at all for at least 10 years before that!

No wonder he doesn’t want to release those tax forms.

But Teapublicans don’t see anything wrong with such behavior.  Many even claim that it’s patriotic to avoid paying taxes.  Seriously?  That’s your definition of patriotism?

You can ignore the sacrifice of soldiers who have served 5, 6 or more tours of duty in a war zone?  You can ignore those who take less than they deserve to serve soldiers in Veteran’s hospitals?  You can diminish those who work long hours for little money to teach children?  You can ignore those who risk their lives to save others as first responders?

None of that is patriotic according to Romney’s supporters.

According to them, true patriotism is squeezing every possible dime from your tax form.  It’s cutting food stamps for the poor.  It’s turning your back on homeless veterans and homeless children.  It’s allowing thousands to die each year for lack of access to healthcare so you can buy another vacation home or a bigger yacht.

If this is the Republican definition of American patriotism, it’s time for the party to crawl into the deepest recesses of history.

Poll: At Least 17% Of Americans Are Nitwits.

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A new poll conducted by the Pew Forum on Religion and Life has found that 17 percent of Americans believe President Obama is Muslim.  Of course, that’s not true.  The President is Christian.  Indeed, many of the same people who want to believe he’s Muslim were originally outraged at statements made by his Chicago Christian pastor.

But that’s not the extent of the lunacy on the right. 

According to a Public Policy Polling survey in March of this year, 37 percent of Americans believe the President was not born in the U.S.  Yet another 21 percent are unsure. (They must have forgotten Hawaii achieved statehood in 1959.)

However, given the other wrong-headed beliefs of the right, none of this should come as any real surprise. After all, these are people who reject education and science.  Many think the Earth is just 6,000 years old and that dinosaurs are a myth invented to test the faith of Christians.

These are people who fail to see a connection between the easy availability of military-style assault weapons and mass killings.  The same people who think that giving ever-increasing tax breaks to the filthy rich will somehow help their own financial circumstances.  People who think defaulting on US debts will benefit our economy.

Obviously, they cannot be educated and informed.  They refuse to listen to anyone but their own equally deluded brethern.  Yet their vote counts the same as yours and mine.

Do you still believe in America exceptionalism?

What Mitt Believes In.

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It’s ironic that Mitt Romney’s campaign slogan is “Believe in America,” because he obviously doesn’t.

What does he believe in?

In a word, money.  His money.  It doesn’t matter if it’s in dollars, francs, pounds, euros, rmb…whatever.  Mitt believes in possessing it.  Lots of it.  And he doesn’t like giving any of it away for taxes.  That’s why he’s used an assortment of tax havens and accounting tricks to keep his tax rate below that of most working people.

Of course, Mitt doesn’t mind that others have to make up for the taxes he dodges.  Based on his tenure with Bain Capital, he doesn’t mind that their jobs are shipped overseas, either.  Or that their companies are dissolved leaving them without jobs, benefits or pensions.

In fact, he’s already said that he’ll cut other jobs if elected president.  He wants to eliminate or combine numerous federal agencies, including the Department of Education and the Department of Housing and Urban Development.  He also wants to give his wealthy cronies a big tax cut; nevermind that the money to pay for it will come out of the pockets of the poor and middle class.

According to a new Joint Economic Committee study, the Romney-Ryan Budget Plan will increase taxes on those making $50,000-$100,000 by $1,300 per year.  It will cost those making $100,000-$200,000 $2,600 per year.  On the other hand, if you make $500,000-$1 million, you will get a check for $35,000.  And if you make more than $1 million, you’ll get a check for $285,000!

Moreover, it has been estimated that Romney’s proposed policies would create 800,000 jobs…overseas.  His tax cuts for corporations would reduce corporate tax revenue by more than $1 trillion over the next decade.  And, of course, he plans to repeal “Romneycare…er…Obamacare” increasing profits for insurance companies and big PhRMA.

Is it any wonder that Forbes magazine calls the Romney-Ryan Budget “A mistake of historic proportions?”

Mitt Also Outsourced The Olympics.

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Last week, Congress was in an uproar upon finding out that the uniforms for the US Olympic team were made in China.  As it turns out, this is not the first time.

Mitt Romney, who counts his experience as “savior” of the 2002 Winter Olympics among his qualifications to become president, outsourced the uniforms for the US Olympic team to Burma (AKA Mynamar).

But that should come as no surprise to anyone.  After all, Mitt outsourced jobs from numerous companies to other countries, just as he outsourced his money to Bermuda, the Cayman Islands, Luxembourg and Switzerland in order to avoid paying US taxes.

The Felon-In-Chief?

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For some time, I have referred to Mitt Romney as the Panderer-In-Chief based on the corny speeches he has given on the campaign trail – “The trees just seem the right height here.”  Now I realize that his tendency to lie and pander to any audience is the least of his obvious faults.

Recent investigations into his 2010 tax return and Bain Capital have yielded an array of offshore accounts and questionable investments, such as an I.R.A. account of $102 million, even though Romney could only legally put $2,000 a year into the account for 15 years and, depending on the type of plan he used, another $30,000 per year.

That’s some rate of return!

There’s also the matter of his accounts in tax havens such as Bermuda, the Cayman Islands, Luxembourg and Switzerland. In talking with bankers and economists, I’ve confirmed that there are only two reasons to open accounts in those places: Secrecy and Tax Evasion.

It’s clear that Romney is one of many who are responsible for an estimated $100 billion in lost annual tax revenue by sending their money offshore, costing ordinary taxpayers an average of $484 a year.  In other words, you have to pay more taxes to make up for tax deadbeats like Romney.

Of course, as CEO and sole owner of Bain Capital, Romney practiced what his Republican rivals termed “Vulture Capitalism.”  He bought up cash rich companies, took the cash, and charged the companies large sums for “management consulting.”  Then when the cash ran out, he either fired the staff and outsourced the jobs overseas or dismantled what was left at salvage rates.

But that’s not the worst of it – at least for Romney.

The Boston Globe found that contrary to Romney’s statements, he was still involved in his company several years after he said he had resigned.  That doesn’t sound like a big deal, except that it means Romney likely committed one or more felonies.  You see, he filed a federal disclosure stating that he left Bain in 1999.  Yet the company’s SEC filing in 2002 listed Romney as “sole stockholder, chairman of the board, chief executive officer and president.”  This would make Mitt guilty of a federal felony for certifying on federal disclosure forms that he left active management of Bain Capital in February of 1999.

Oops!

If elected, Mitt could be our nation’s first presidential felon.  Moreover, if he lied on disclosure forms, he may have lied on his federal tax returns.  There are many other questions about Romney.  But his business dealings and finances are shrouded in secrecy.  Indeed, The Washington Post summarized the opinions of experts across the political spectrum by saying Romney’s disclosures were “the most opaque they have encountered.”

Now imagine the uproar if Teapublicans found that President Obama had offshore tax havens and shipped American jobs overseas.  The torch and pitchfork crowd would’ve already surrounded the White House.

The Truth About The Great “Job Creator.”

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Former Governor and current Panderer-In-Chief, Mitt Romney, claims that he has the experience to put our economy on the fast track.  The question is, the fast track to where?

In his 15 years at Bain Capital, Romney made tens of millions by buying companies and dismantling them, or firing employees and outsourcing jobs to China.  Indeed, according to a story published in Vanity Fair, Bain itself found that during the period of 2002 to 2007, there is “little evidence that private equity owners, overall, added value” to the companies they took over.  Instead, the company found that most of its profits were the result of overall economic growth, rising stock markets and leverage.

More disturbing, the Vanity Fair article found that Romney used every conceivable trick to avoid paying federal income taxes.  Not only did he stash money in a secret Swiss bank account.  He stashed an estimated $30 million in Bain Capital Funds in the Cayman Islands.  In another questionable transaction, he shifted funds to his wife’s name in order to avoid taxes.  There’s even the mystery of how Romney’s IRA, with contribution ceilings of $2,000 per year for 15 years, now contains up to $102 million!

So, while most Americans play by the rules and pay up to 35 percent of their income in taxes, the great “Job Creator” deposited millions off-shore in order to avoid paying taxes to the country he wants to run?  And in the process, he destroyed American companies and jobs?

If this man collects a single vote from an ordinary working American, that’s one more than he deserves.

How Performance-Based Compensation Is Killing America.

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Sometime in the late 70s, I met with a client to discuss his marketing plans for the year.  When I asked about the company’s long-term plans, the client said that his Fortune 500 Company no longer does long-term planning.  When the client noticed my obvious surprise, he told me that things were changing too quickly.  He went on to explain that the company’s CEO is now compensated with a base salary and performance-based stock options.  The higher the stock price, the more the CEO would be paid.

Now more than 30 years later, the effects of performance-based compensation are obvious.

CEOs now base their companies’ success on the share price of securities.  Not on brand value, number of offices and employees, company holdings and investments, or sales.  As a result, many CEOs are now willing to mortgage the future of their companies in order to maximize share price.  Of course, one way to accomplish their short-sighted goal is to increase productivity, aka employee layoffs.  Another popular method is to cut or eliminate employee benefits.  Yet another method is to export jobs to countries that have a plentiful supply of low-cost workers, no labor unions and few regulations.

There is no loyalty to long-time employees, vendors, communities, the nation or the environment.  The only thing that matters is the stock value and how that translates into executive compensation.  The average tenure of a CEO with any one company is slightly more than 8 years.  As a result, they often don’t care about what happens to that company 10, 20 or 30 years from now as long as they have time to cash in their stock.  If the company is aquired or merged, that only means the stock price is likely to go up.

If we want to take back our country from these greedy few, we have to change the way performance is measured.  The price of a share of stock is not enough.  We must also measure the value of corporations to our nation – the number of jobs provided, impact on our environment, contributions to communities, value of natural resources consumed, and taxes paid.

Until that happens, you will continue to see CEOs lead our nation in a race to the bottom.

The Teapublican Book of Lies.

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You know those things Teapublicans present as facts that just never quite make sense?  The ones that are repeated day after day on Fox News Channel and right wing radio?  The conservative ideas that have been tried and failed, but keep coming back?

I’ve taken 50 of those so-called “facts,” researched them, and presented my findings in a new book:  The Teapublican Book of Lies.  It’s a sort of handbook for debates with your conservative friends and family members.

Pardon the shameless self-promotion, but you can buy the book from Amazon.

The Real Freeloaders.

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For the past year Teapublicans, cheered on by Fox News Channel, have complained that the poor pay no federal income taxes.  They have insulted those who are down on their luck by calling them the “Freeloader Class.”  Yet, at the same time, they decry tax increases for the wealthy as “Class Warfare.”

Well, Teapublicans, you now have another group of freeloaders worthy of your disdain and venomous attacks:  According to a report by the Internal Revenue Service, more than 35,000 people with incomes of $200,000 or more paid no federal income taxes in 2009.

These are people who, by any standard, must be considered wealthy, but through a variety of tax credits and deductions were able to zero out their federal income tax bill.

Tell me, Teapublicans, which is worse?  The working poor and the elderly who make so little they are not required to pay federal income taxes?  Or those fortunate enough to earn substantial incomes and use a combination of write-offs and accounting tricks to avoid their responsibilities?

The answer is clear, even if you are unlikely to admit it.

How Teapublicans Win.

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What happens when you combine the least educated and least curious portion of our electorate with the most selfish and greedy?  What happens when those people are guided by the religious certainty that the Earth is 6,000 years old and that the destruction of our planet will only hasten their opportunity to ride in the golden chariot to heaven?  What happens when they’re led by people who are willing to tell any lie and embrace any falsehood to be elected?

The result is today’s Republican Party.

Of course, they’ll never admit it.  According to Teapublicans, they’re simply trying to rescue America from socialists, communists, fascists and other undesireables such as Democrats, women, school teachers, government workers, labor unions, immigrants, gays, lesbians, transgenders, people of color, and the poor.  I’m sure there are many other “enemies,” but I don’t know what’s inside the minds of Teapublicans.  And, given the ugliness of their rhetoric, I certainly don’t want to peek inside!

The reality is that Teapublican leaders want their followers to fear their neighbors, so they won’t notice the big money interests pulling the strings behind the curtain.  They’re quite literally rigging the system and walking off with the money.  They’ve pushed their tax burden onto the already overburdened middle class.  They collect billions in government contracts and subsidies. And by gaining control of the Supreme Court, they’ve usurped even more control of our political system.

Now they’re out to undermine Social Security and Medicare.  The end result will be to give large financial institutions and insurance companies (both controlled by Wall Street) access to still more of our money.

If more people recognized what’s going on, Teapublicans would never again win an election.  They can’t win based on an open discussion of ideas and truth.  They can only win through a combination of lies, intimidation, dirty tricks and fear.

This year, they are led by a candidate who quite blythely says today what is in direct contradiction with what he said yesterday.  And his followers eat it up.  They’ve manufactured the usual number of straw dogs to excite their base and intimidate opponents, such as ballot measures designed to appeal to their religious base in order to incite more campaigning from the pulpit.  They’ve created PACs and Super PACs with tens of millions in anonymous money to buy votes.  And they are well on their way to repressing minority votes through new voter ID laws.

We’ve seen it all before…in 2000, 2004 and 2010.  And with each passing election cycle, the conversation leans further to the right and ordinary citizens lose a little more control of our country.