January 30, 2012

Romney, Bain, And The Power And Money Cycle In Washington

Money - photo by Andrew Magill

We the people need to stop listening to politicians in Washington that complain about “class warfare” and “punishing success”. Of course politicians saying such things are universally Republican. Why does the average conservative with an average wage take cues from the millionaires in congress? These millionaires in congress are not looking out for the Average Joe. No, instead they are pursuing an agenda written and hand-delivered by their millionaire and billionaire friends.

There is a massive lobbying effort going on in Washington every day and it spends millions to shape legislation to favor a select few wealthy elites with very narrow interests. If millionaires and billionaires are able to shape legislation and the tax code so that they can keep more of their income – usually investment income, not income from labor – then it means the rest of us will have to pay more to make up the difference.

A recent and high-profile example of this power and money cycle is directly tied to the current GOP presidential front-runner, Mitt Romney and his former company, Bain Capital. Several pieces of legislation introduced in 2007 would have – if passed – ended a capital gains tax rate loophole allowing some millionaires and billionaires to claim income at the 15% capital gains tax rate instead of the top marginal income tax rate of 35%. This legislation didn’t pass and it turns out that Romney’s former company Bain Capital played a central role in its defeat. Bain and other companies lobbied intensely – and successfully – to kill this proposed legislation and keep the capital gains loophole in place.

After Democrats won control of both the House and the Senate in the 2006 midterm elections, they advanced several pieces of legislation that threatened to end this lucrative quirk of the tax code and other tax policies that favor the rich. Mitt Romney, who made just over $20 million in investment income in 2010, wasn’t having any of it. During an August 2007 appearance on Kudlow & Company, Romney was asked what he thought of the effort to close the loophole. He wasn’t happy. “I want people to be able to save their money and invest in America’s economy tax-free,” Romney said. “I want to lower taxes. I want to lower marginal rates across the board. I want to lower taxes for corporations,” he told Kudlow.

(click to read full Mother Jones article)

Do we really want to see Mitt Romney, someone completely out of touch with the average American, become President? Are there any conservatives or Republicans reading this? If so, can you support Romney if he becomes the Republican nominee?

dks

photo by Andrew Magill via Flickr

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