Showing posts with label sleazy republicans. Show all posts
Showing posts with label sleazy republicans. Show all posts

Tuesday, September 11, 2012

What Liberal Media? The Washington Post's Jennifer Rubin Helps Spread Romney's Sleazy Lies


















What Liberal Media? The Washington Post's Jennifer Rubin Helps Spread Romney's Sleazy Lies

Republican presidential nominee Mitt Romney is facing a torrent of criticism from Democrats, tax analysts, and even a stray conservative or two over the lack of specifics in his tax proposals. But as per usual, there is one person who's standing by Romney, ready to fabricate any excuse she can in defense of the GOP candidate: Washington Post blogger Jennifer Rubin, who is defending Romney's lack of detail by arguing (falsely) that President Obama doesn't have a tax plan.

Romney finds himself in this situation after both he and running mate Paul Ryan appeared on Sunday morning news shows and repeatedly declined to identify the tax loopholes they'd close to pay for the steep tax cuts their plan would put in place.

Rubin, who recalibrates her opinion on the specificity of Romney's tax plan depending on how it better serves Romney's interest, argues today that Romney's level of detail is less important than Obama's alleged failure to release a tax plan:

    The media have accused Romney of being nonspecific about his tax plan. (At least he has both an individual and corporate one; the president does not.) He explained: "I can tell you that people at the high end, high-income taxpayers, are going to have fewer deductions and exemptions. Those -- those numbers are going to come down. Otherwise, they'd get a tax break. And I want to make sure people understand, despite what the Democrats said at their convention. I am not reducing taxes on high-income taxpayers. I'm bringing down the rate of taxation, but also bringing down deductions and exemptions at the high end so the revenues stay the same, the taxes people pay stay the same. Middle-income people are going to get a break."

    This won't fly with the media (the same people who never ask Obama where his tax plan is or where his entitlement reform plans are), which will continue to press him for details.

For the moment, let's set aside the spectacle of someone with a Washington Post byline criticizing the media for wanting too much detail. The assertion that President Obama has not released a tax plan is flatly untrue.

It's right here, as part of the president's FY 2013 budget proposal. The Tax Policy Center has a whole section of its website devoted to the tax provisions contained therein. You can critique Obama's plan, disagree with it, argue that it has insufficient detail, but you can't say it doesn't exist.

With regard to corporate taxes specifically, the president released a plan in February for overhauling the corporate tax code, which one can read here. It calls for cutting the corporate tax rate and closing specific loopholes and tax expenditures (for instance, taxing carried interest as income and ending "last in, first out" accounting).

This is after all the election cycle where the masks have come off the radical conservative movement - they hate facts, they hate fact checkers - they're running on winks and secret handshakes. Its like a club that speaks in a secret language only they know and understand. "Just trust" them, they'll get around to some details about how they're going to increase spending yet cut tax revenue to pay for it when they are elected. We had that before, it was called the Bush presidency. The one that took a budget surplus, ran up the biggest debt in history, cut taxes for millionaires and crashed the economy. M's Rubin is not just a boot licking liar, she is a dangerous ideologue for the cult of conservatism.

Paul Ryan (R-WI) is a serious wonk who knows his stuff as long as you do not start to use any analytical tools, like arithmetic.


Tuesday, July 17, 2012

Mitt Romney, Like The Republican Party is Out to Destroy Capitalism


















Mitt Romney, Like The Republican Party is Out to Destroy Capitalism

Mitt Romney touts his business acumen and job-creation record as a key qualification for being the next U.S. president.

What’s clear from a review of the public record during his management of the private-equity firm Bain Capital from 1985 to 1999 is that Romney was fabulously successful in generating high returns for its investors. He did so, in large part, through heavy use of tax-deductible debt, usually to finance outsized dividends for the firm’s partners and investors. When some of the investments went bad, workers and creditors felt most of the pain. Romney privatized the gains and socialized the losses.

What’s less clear is how his skills are relevant to the job of overseeing the U.S. economy, strengthening competitiveness and looking out for the welfare of the general public, especially the middle class.

Thanks to leverage, 10 of roughly 67 major deals by Bain Capital during Romney’s watch produced about 70 percent of the firm’s profits. Four of those 10 deals, as well as others, later wound up in bankruptcy. It’s worth examining some of them to understand Romney’s investment style at Bain Capital.

In 1986, in one of its earliest deals, Bain Capital acquired Accuride Corp., a manufacturer of aluminum truck wheels. The purchase was 97.5 percent financed by debt, a high level of leverage under any circumstances. It was especially burdensome for a company that was exposed to aluminum-price volatility and cyclical automotive production.

Casino Capitalism

Forty-to-one leverage is casino capitalism that hugely magnifies gains and losses. Bain Capital wisely chose to flip the company fast: After 18 months, it sold Accuride, converting its $2.6 million sliver of equity into a $61 million capital gain. That deal, which yielded a 1,123 percent annualized return, was critical to Bain Capital’s early success and led the firm to keep maximizing the use of leverage.

In 1992, Bain Capital bought American Pad & Paper by financing 87 percent of the purchase price. In the next three years, Ampad borrowed to make acquisitions, repay existing debt and pay Bain Capital and its investors $60 million in dividends.

As a result, the company’s debt swelled from $11 million in 1993 to $444 million by 1995. The $14 million in annual interest expense on this debt dwarfed the company’s $4.7 million operating cash flow. The proceeds of an initial public offering in July 1996 were used to pay Bain Capital $48 million for part of its stake and to reduce the company’s debt to $270 million.

From 1993 to 1999, Bain Capital charged Ampad about $18 million in various fees. By 1999, the company’s debt was back up to $400 million. Unable to pay the interest costs and drained of cash paid to Bain Capital in fees and dividends, Ampad filed for bankruptcy the following year. Senior secured lenders got less than 50 cents on the dollar, unsecured lenders received two- tenths of a cent on the dollar, and several hundred jobs were lost. Bain Capital had reaped capital gains of $107 million on its $5.1 million investment.

It always seems that some essential ingredients are missing from how conservative Republican views capitalism versus moral patriotic Americans. Romney and conservatives are out to exploit the system, to plunder, to sneak around ethical concerns, to undermine competitive markets - to create loads of money for themselves by any means necessary. Normal patriotic capitalists see the free market as a place to compete - to offer goods and services at competitive prices. To engage in meaningful dignified employment. To enjoy our families and lives.To buy the basics like food, shelter and clothing to provide the basic comforts. Republican believe in making America into a kind of corporate collective - a weird mirror image of Marxism - with the corporate lite at the top, and the powerless workers below.


Romney's 'Free Stuff' Speech Is a New Low