Romney's Un-Artful Tax Dodge Purposely Omits the Word "Income" in His Statement

[David Zephyr]

The standing accusation from Senator Reid (now being corroborated by Dana Bash) is that Mitt Romney did not pay "income taxes" for ten years.

Today, the most rehearsed and well-scripted candidate in American political history, Mitt Romney, responded (again) to the charge with these carefully chosen words:

“Let me also say, categorically, I have paid taxes every year. And a lot of taxes," candidate Romney declared.

Well, EVERYONE pays "taxes every year". We all pay sales taxes and gasoline taxes. Romney did NOT say he has paid INCOME "taxes every year".

Very revealing. Not an accident.

He left the words "income" out of his denial. On purpose. By design.

This guy is sweating like Nixon on this issue and is clearly hiding what he knows would appall Americans of all stripes.

"I have paid taxes every year." Yeah, Mitt. So has everyone in America.

But you didn't pay INCOME taxes every year.

Harry Reid has your game.

[Bluenorthwest]

1. It was a virtual admission that he'd not paid income tax in some years...

nt

[David Zephyr]

4. I hope someone in the media picks up on the carefully selected phrasing in his denial.

It was as you say "a virtual admission".

His "denial" did not deny Senator Reid's charge regarding income taxes.

Where's the media on this.

[pscot]

37. Someone just did

We are the medium and we have the message.

[David Zephyr]

50. I'm an old guy, I still forget that.

Well said.

[tomm2thumbs]

53. I think he'll get what's coming...

[coalition_unwilling]

2. Unlike Nixon, Romney's Checkers is Seamus and I doubt he would be a witness

for Romney

[K8-EEE]

3. I thought so too and also noticed McCain not sticking up for him

Like he did for Huma -- b/c he probably was briefed on his zero income tax rate.

[David Zephyr]

9. Very interesting observation, K8-EE

Thanks.

[Vincardog]

5. This is the same dodge the "elites" use to suggest that Tax cuts on the first $200,000 is not

a tax cut for the rich. Even the people making $20M a year make the first $1 first.
They want a BIGGER cut for those already obscenely rich.

[XemaSab]

6. Are we sure that he actually had an income most of those years?

[treestar]

17. He must have had

Or how to buy the car elevator? Granted it may not be wages, tips and salaries, but rather dividends, annuities and the like.

[aint_no_life_nowhere]

19. You raise an interesting point

I'm not an accountant but I've heard that Smarmney didn't make an income but only capital gains, which supposedly is not considered income for federal tax purposes. Could it be that both Reid and Romney are playing around with that word "income"?

[AnotherMcIntosh]

30. There is no factual basis for anyone to believe that capital gains is not income.

Capital gains are either long-term capital gains or short-term capital gains. The distinction is based upon the type of asset giving rise to the capital gain and the holding period.

Capital gains subject to taxation in this country is subject to different tax rates according to whether the capital gain is long-term or short-term. The long-term rates are lower than the tax rates applicable to ordinary income. The short-term rates are equal to the tax rates applicable to ordinary income.

Foreign-source income as capital gains is taxable in the United States, although special rules may be applicable when determining the tax paid on such income.

If you know of anyone who has received capital gains but steadfastly claims that capital gains is not income, report them to the IRS. The IRS pays rewards.

[David Zephyr]

32. Well said. It is indeed income.

Thanks, AnotherMcIntosh.

[beyurslf]

23. He had an income as the governor of Mass unless he declined it.

[siligut]

26. I think I heard he did decline his income from being Governor

I was surprised and wondered if I heard correctly. But, maybe that is true.

[LiberalFighter]

55. AFAIK he received income from the Olympics in addition to his Bain income.

[heaven05]

70. compared to what?

he didn't need money then or has he ever. Sociopaths will pass on money in exchange for perceived power over others. He's a classic sociopath, just listen to his laugh. creeeeeepy! he's a poisonous snake!

[siligut]

72. I know Mitt is treacherous

I just heard that he chose to forego his salary as Governor. I wonder why, because while, as you say, sociopaths might exchange money for power, I seriously doubt Mitt would ever give up money that he didn't have to.

[heaven05]

75. yeah

that's seriously funny.lol

[jmowreader]

38. He's probably never had what the IRS calls "ordinary income"

Ordinary income includes wages and salaries.

What Romney has is "capital gains" income, which is taxed differently because the original theory is, when someone invests in a company he helps create jobs and growth, and also takes a larger risk, so therefore should be rewarded with a lower tax rate. (There's also the "double taxation" theory, which is a load of shit: today I bought a set of bicycle tires. I paid taxes on the money I received from my employer, and the bike store paid taxes on the money they received from me. That money was also "double taxed," but no one notices that.) The original theory, in large part, doesn't hold true because most "investment" today is Rich Guy A buying stocks from a brokerage who bought them from Rich Guy B, waiting till they go up in price, then selling them back to the brokerage so Rich Guy C can buy them. The only one who really "grows" from a transaction like that is the brokerage.

When Romney had a real job--being a governor--he refused to accept his state paychecks. So...no, he's never really earned a dollar of ordinary income in his life.

You may be thinking, 'but what about when he ran Bain?' Good point, and I'm glad you brought that up. When you are really rich you can ask to be paid in anything you want--and the way you want to be paid is in something that is taxable as a capital gain.

[magical thyme]

45. actually he has on occasion had some "earned income"

That few hundred thousand dollars in pocket change he earned in consulting fees was "earned income."

But his serious income has been in capital gains in one form or another.

[XemaSab]

49. .

[brush]

66. He had an income

That's kinda cute phrasing (sort of like the Mittster's), but we all know he had at least a six figure income from Bain even when he was running the Salt Lake games and also income from his investments. And we're talking 10 whole years that Harry Reid busted him on, so yeah, he had income. No self-respecting repug is gonna go 10 years without . . . well, you get the picture?

[Teamster Jeff]

7. Good catch

This is getting interesting

[David Zephyr]

35. It's indeed getting very interesting.

It's the old saying, "not what they say, but what they don't say"...like "income" taxes.

Harry Reid is a treasure. A treasure.

[JHB]

8. I caught that too...

He's been very meticulous in his word usage so far, in the same way as that infamous Newt quote "I like blow jobs because then I can honestly say I didn't sleep with her".

This is a departure with an "escape hatch of interest".

[progressivebydesign]

15. ewww.. burning mental picture right now. n/t

[aquart]

10. We all noticed.

[tridim]

11. Willard rocks the "Fuzzy Math" with the best of them

Welcome to screwsville Mittens, population: You.

[Bozvotros]

31. LOL

I've never heard that. I like it!!

[kentuck]

12. Good catch DZ !

He is definitely doing a little bit of wordsmithing.

[David Zephyr]

51. Thanks, kentuck. I hope someone in the press grills him on the omission.

Romney is in the boiler.

[LiberalFighter]

56. Should it be wordsmithing?

Or wordshitting? I favor the latter in Rmoney's case.

[aint_no_life_nowhere]

13. I wonder how much in property taxes he pays on all his mansions

the giant mansion on the ski slope, the lakeside New Hampshire estate, the beachfront villa in La Jolla and who knows what other real estate he owns must involve some hefty property taxes. But it's not federal income tax.

[treestar]

18. True! And it's not tax he should whine about

people with average properties pay their property taxes too.

[JDPriestly]

25. And the property tax on rental properties is paid in the rent. The landlord

does not pay the property taxes from his personal income but rather from the tenant's rent.

[Maraya1969]

14. Good point. He said "Harry needs to put up or shut up"

I think he was speaking of himself and made a Freudian slip.

[David Zephyr]

52. Maraya1969, you have it.

Romney opened this can of worms up. It's THE issue now.

[ProSense]

16. Excellent point n/t

[cthulu2016]

20. FICA, property taxes...

[JDPriestly]

21. Absolutely right. Some lawyer wrote the statement!!!

Romney probably pays no income taxes and is trying to talk out of both sides of his mouth about it.

The Republicans like to claim that a lot of (poor) Americans pay no taxes. When they use the word "taxes" in that context, the specifically mean income taxes.

Everybody pays taxes -- sales taxes, property taxes, etc. But only those with at least enough income to live on after taxes pay income taxes.

Romney should be paying a hefty sum in income taxes because he has a very high income. I bet he takes it all in capital gains and therefore pays no taxes. We need to raise the taxes on capital gains and investment income. He is the living proof for that idea.

[rocktivity]

33. If he's paid no INCOME tax because he's HAD NO INCOME, that's all he has to say.

Last edited Fri Aug 3, 2012, 09:16 PM - Edit history (2)

It would probably automatically disqualify him from the U.S. Presidency, but that's all he has to say!


rockivity

[jmowreader]

40. That creates a problem for Romney

Investment income is still income, and Romney has a shitload of it. Romney claiming he has "no income" would be the 2008 equivalent of...I don't know, maybe Clinton's saying he didn't inhale or Nixon saying he wasn't a crook.

[LiberalFighter]

57. IMO we need to hit Rmoney on how much of his income is exempt from taxes.

Based on his 2010 return he had about $4,650,000 that he did not pay taxes on. It looks like there is about $6 million of his income for 2011 that was not taxed. All of that income except for the two exemptions and between 100k and 350k were deductions that he itemized.

And every time they bring up the ones that don't pay taxes this needs to have more light. On average those with 200k of taxable income have about $64k of itemized deductions. Those itemized deductions is more income than most people.

[reflection]

82. This is a very good point

and I intend to use it. There are many RW folks I hear chattering about poor people paying "no taxes." Thank you for expressing it so articulately.

[citizen blues]

22. He wouldn't have paid income taxes....

He made his money off investments and dividends and most of the taxes on those have long since been eliminated.

The type of vulture capitalist Romney is finds a way to have his business "losses" balance out his business "income" so he doesn't have to pay taxes. I worked in finance and saw businessmen with six-figure incomes not pay a dime in taxes because they supposedly didn't make any money last year. Their 50k trucks, the wife's BMW and the 450k house said otherwise. Then they would get enraged and throw a tantrum when I couldn't make them a loan since I couldn't verify their income when the last two years tax returns showed negative numbers.

Romney plays the exact same game, only on a larger scale.

[renate]

29. interesting--and welcome to DU!

Funny example about how the six-figure guys couldn't get a loan because of how they manipulated their taxes.

[AnotherMcIntosh]

34. Under IRC §61(a)(7), dividends are included in gross income.

There is no factual basis for anyone to believe that the taxes on dividends "have long since been eliminated."
See, e.g., http://www.law.cornell.edu/uscode/text/26/61

Taxes on dividends have never been "eliminated."

[David Zephyr]

36. Yep.

Capital gains is income and it is taxable...albeit at too low of a rate. Thanks, AnotherMcIntosh.

[citizen blues]

46. My mistake. Thanks for correcting that.

It still doesn't change the fact that I saw a lot business men and women earning 6 figures not qualify for $10k personal loan because their tax returns reported a net loss for the year. I thought it was ridiculous then and think it's ridiculous now. I paid far more in taxes on my $42k salary than they did with all their fancy cars, fancy houses and vacation condos. Our tax code is a joke. That's why I have no problem believing that Romney paid nothing for a decade.

[AnotherMcIntosh]

47. "paid far more in taxes on my $42k salary" You probably paid more than the corporations

that shipped American manufacturing jobs to foreign countries under the so-called "free-trade" agreements.

[JDPriestly]

85. Exactly!!!!

[barbtries]

24. i heard that on the way home from work

and that was the first thing i thought. yeah, asshole, EVERYONE pays taxes.

[David Zephyr]

59. Exactly.

The deliberate omission of the word "income" before the word taxes while he feigned outrage at Reid's assertion is very revealing. This is a man with a lot to hide.

I think he's opened this up far more than he ever intended. We must keep this alive.

Polls show that Americans overwhelmingly want him to release his tax returns.

You heard it the same way I heard it, babtries. It was a dodge masked with phony indignation.

[elleng]

27. It's Capital Gains!

[AnotherMcIntosh]

39. In 1921, the Supreme Court made it clear that capital gains are subject to taxation as income.

No one should rely upon the sometimes argument made by tax protestors that the 1920 Eisner v. Macomber decision issued by the Supreme Court supports a theory that capital gains are not taxable as income. That was not the holding of the Court. Some tax protestors misrepresent that as being the Court's holding.

In contrast to misleading information published or repeated by tax protestors, see the Supreme Court's 1921 opinions in United States v. Phellis, 257 U.S. 156 (1921) and Rockefeller v. United States 257 U.S. 176 (1921).

Tax protestor arguments should not be relied upon. Those who make such arguments to the IRS or the courts are subject to special penalties.
http://en.wikipedia.org/wiki/Tax_protester_(United_States)

[jmowreader]

41. There's a corresponding tax protestor argument out there

It claims that the Congress meant for "income" to only include what we call capital gains, and that wages and salaries are not taxable.

I find it pretty fucking hilarious that tax protestors believe the form of income (cap. gains or ordinary income) they do not receive is the one the Congress "originally intended" to be taxable income and the other is the one Congress "originally intended" to not be taxable. Apparently "from whatever source derived" is something teabaggers and Phil Hart really can't understand.

[AnotherMcIntosh]

43. IMO, the tax protestors, like the teabaggers, are the strangest people ever.

[LiberalFighter]

58. Probably as strange as the ones that think loans should be forgiven after 7 years.

Because the bible says so.

[quaker bill]

62. Interesting concept

but it would make getting a 30 year mortgage a bit tough....

[AnotherMcIntosh]

69. There's a statute of limitations in the Bible? Who knew? Certainly not the banksters.

[LiberalFighter]

73. If I rebut anyone on this it would be to point out that it only applied to the Israelites.

From Deuteronomy 15

1 At the end of every seven years you must cancel debts.

2 This is how it is to be done: Every creditor shall cancel any loan they have made to a fellow Israelite. They shall not require payment from anyone among their own people, because the Lord’s time for canceling debts has been proclaimed.

3 You may require payment from a foreigner, but you must cancel any debt your fellow Israelite owes you.

4 However, there need be no poor people among you, for in the land the Lord your God is giving you to possess as your inheritance, he will richly bless you,

5 if only you fully obey the Lord your God and are careful to follow all these commands I am giving you today.

6 For the Lord your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.

7 If anyone is poor among your fellow Israelites in any of the towns of the land the Lord your God is giving you, do not be hardhearted or tightfisted toward them.

8 Rather, be openhanded and freely lend them whatever they need.

9 Be careful not to harbor this wicked thought: “The seventh year, the year for canceling debts, is near,” so that you do not show ill will toward the needy among your fellow Israelites and give them nothing. They may then appeal to the Lord against you, and you will be found guilty of sin.

10 Give generously to them and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to.

11 There will always be poor people in the land. Therefore I command you to be openhanded toward your fellow Israelites who are poor and needy in your land.

I don't believe the Israelis currently follow this practice. Or Jews in other countries. And I don't believe they restrict their aid to non Jews in this century as they encouraged in Old Testament times.

[AnotherMcIntosh]

77. Loopholes. Always loopholes.

[Enrique]

28. yep, Mitt is the master of loopholes

never listen to a Mitt speech without a lawyer present.

[wiggs]

42. So ironic that the upcoming historic battle over concentration of wealth through biased legislation

and tax advantages and predatory practices is going to be sparked by the very candidate who would oppose a fairer system.

Over the last 30 years, the trickle down theory has been supported and catalyzed stealthily, not in plain view of the public (thanks, MSM). Almost all of the wage growth and wealth gains have gone to the upper 1%, not accidentally and not quickly but by an accumulation of factors that have been overlooked by many.

Bush's quote ' Some people call you the elite...I call you my base....the haves and the have-mores' should have ignited a vigorous discussion, but it was quickly forgotten.

This here guy ....a quarter-billionaire (or more) candidate who is as corporatist as they come, who seeks to comfort the unemployed by quipping that he's unemployed too, whose wife says she doesn't feel rich, who clearly believes that America's strength lies in its ultra wealthy, who has thoroughly demonstrated a rarified world view that is alien to the vast majority of Americans.....is going to be the lightening rod that SPARKS the upcoming tax code/inequality/waning middle-class discussion rather than the GOP choice to once again sweep inequality under the rug by distracting Americans with war, social issues, or fear.

Interesting and ironic. Assuming the dems play it right, of course.

[AnotherMcIntosh]

44. Its too bad that the upcoming historic battle is not going to be about job-transferring "free-trade"

agreements.

If the trickle down theory hasn't worked in this country, there is no reason for anyone to believe that any "free-trade" agreement involving wealth-shifting to foreign countries is going to result in a trickle down of wealth to anyone in the working class in this country.

Since Rmoney made his wealth by transferring jobs to foreign countries, it's too bad that the primary focus cannot be upon that.

[quaker bill]

63. It is in the sidecar

not in the front seat, but it is along for the ride.

[AnotherMcIntosh]

67. It is in the sidecar? One of the candidates is opposed to job-transferring "free-trade" agreements?

If it "is in the sidecar," which presidential candidate is opposed to it?

How many people know that Rmoney, like the Chamber of Commerce, is supporting the Obama Administration's pending job-transferring "free-trade" agreement?

Trans-Pacific negotiations have been taking place throughout the Obama presidency. The deal is strongly supported by the U.S. Chamber of Commerce, the top lobbying group for American corporations. Obama's Republican opponent in the 2012 presidential elections, Mitt Romney, has urged the U.S. to finalize the deal as soon as possible.
http://www.huffingtonpost.com/2012/06/13/obama-trade-document-leak_n_1592593.html

If anyone is going to oppose the pending job-transferring "free-trade" agreement, it may be the Democratic Senators. It is not going to be the presidential candidates. This may be our last chance to influence and vote for Democratic Senators who might vote against the pending job-transferring "free-trade" agreement.

Here's the let's-send-jobs-to-foreign-coutries "free-trade" agreements that have been signed so far:
1994 - NAFTA

2001 - Jordan – United States Free Trade Agreement
2004 - Australia-United States Free Trade Agreement
2004 - Chile - United States Free Trade Agreement
2004 - Singapore – United States Free Trade Agreement
2005 - Dominican Republic–Central America Free Trade Agreement (DR-CAFTA; incl. Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic)
2006 - Bahrain – United States Free Trade Agreement
2006 - Morocco - United States Free Trade Agreement
2006 - Oman – United States Free Trade Agreement
2007 - Peru – United States Trade Promotion Agreement

2011 - Panama - United States Trade Promotion Agreement
2011 - Colombia - United States Trade Promotion Agreement
2011 - Republic of Korea (South Korea) - United States Free Trade Agreement

[bleever]

48. It would have been VERY easy to be unambiguous.

But instead he made the extra effort.

I concur with Mr. Zephyr.

[David Zephyr]

60. Quite an effort, too, huh, bleever.

All of Romney's feigned outrage against Reid's simple assertion that he hadn't paid income taxes for ten years. And then he "made the extra effort" as you said to be ambiguous. This won't fly. We must keep his feet to the fire on this issue that Romney really wants to go away.

If the heat stays on enough, and there is already a lot of groaning going on over this within the GOP, this could get really interesting.

Thanks for your comments, bleever.

[grasswire]

54. SLICK WILLARD

Remember how they excoriated Bill Clinton when he answered a question by saying "depends on what the meaning of 'is' is."

That was about consensual sex.

This is about felony tax evasion.

[demgrrrll]

61. I just read something about UBITs which apply to IRA and family trust money

Apparently you can use a foreign blocker to keep an investment tax free as long as you did not set up the foreign blocker yourself, if he was CEO of Bain he would have had input and might possibly owe 60 million on the IRA. Maybe that is why it is so important for him to have the date of 1999 as the absolute date he left Bain. I am not a tax expert and this is very confusing to me but somehow it makes sense. This was a comment made on an article, not an article I can link to. Maybe someone with some tax knowledge can flesh this out.

[Heather MC]

64. he can't pay income taxes technically he is unemployed

right? well if you don't can't the secret money he gets from being Vain secret CEO

[DallasNE]

65. What Is Not Said Often Says More

Than what is said and that looks like the case with Romney here.

[David Zephyr]

79. Especially with this cold, calculating politician.

He has to releases his tax returns. It's un-American to refuse to do so.

[bonniebgood]

68. There is a box on the average 1040 that

ask "any foreign income?. I believe the morman church is a large laundry facility.
and mitt is the ceo there as well. although his title there is bishop.

[flamingdem]

71. Will we ever get the chance to see what a complete liar we're dealing with here?

No, he'll never let those returns out of his grubby, stealing hands.

[DirkGently]

74. Interesting observation. I think this issue touches his Crazy Place.

After watching Rachel's piece last night, where she pointed out that he's not only consistently refused to show his tax returns, but has done so while just as consistently demanding everyone else's, including their spouses', I think this income tax thing is a very special obsession of his.

My SO observed that Romney is not a rich guy who just lets accountants handle everything. All these tax shelters and funky business structures offshore are not something that every single rich person does. Many, sure, but this is elaborate. It's a pet project. He is OBSESSED with his income taxes and specifically, trying not to pay them. He doesn't have to "check" for ABC or anyone else. He knows, to the penny, what he's paid. And I think this claim of a $200 million fortune is far short of what he's holding.

And there's something more. That scary, detached glint in his eye. He's got it a lot, to different degrees, whenever "those people" are asking him questions, but when it comes to this tax issue, he is ENRAGED.

There is a plunging dagger behind his eyes, barely restrained from ripping the throat out of anyone daring to "go there."

I had thought before Romney was just kind of an entitled empty suit. But as these little details of his personality have emerged, all of which entail cruelty, I think he's actually a nasty scary piece of work. I think his family is afraid of him. Ha, ha, Daddy shoved your face in butter, but don't think you can do that do Daddy. No one messes with Daddy.

Don't know how it's going to turn out, but I think this is a guy with a serious mask on, and he could do anything if cornered.

[David Zephyr]

81. "He knows, to the penny, what he's paid."

Well said. And true.

[Ian_rd]

76. Yeppers. Less than one second after I read Romney's retort I thought, "Sure, sales taxes!"

Weak, Mitt. Weak.

[xxqqqzme]

78. "... I have paid taxes every year.

And a lot of taxes," candidate Romney declared. '

Declared w/ that creepy, annoying, pathological grin/laugh

[Blue Gardener]

80. Sales tax really adds up

When you're buying enough cars that you need an elevator for them.

[existentialist]

83. I noticed the phrasing too.

I'm not ready to state that your theory is the complete truth, but I'm closer to that than to saying that you are mistaken.

In any event, if Mitt has paid income taxes his method to prove that he has done so is obvious--and he refuses.

[applegrove]

84. He's baiting Obama. Obama is not buying it.