http://www.alternet.org/news-amp-politics/fact-check-romney-told-27-myths-38-minutes-during-debate?akid=9489.231609.rerNCr&rd=1&src=newsletter721973&t=3
Fact Check: Romney Told 27 Myths in 38 Minutes During the Debate
Romney won praise for his performance but only accomplished this goal by
repeatedly misleading viewers.
October 4, 2012 |
Pundits from both sides of the aisle have lauded Mitt Romney’s strong
debate performance, praising his preparedness and ability to challenge
President Obama’s policies and accomplishments. But Romney only
accomplished this goal by repeatedly misleading viewers. He spoke for
38 minutes of the 90 minute debate and told at least 27 myths:
1) “Get us energy independent, North American energy independent. That
creates about 4 million jobs” . Romney’s plan for “energy independence”
actually relies heavily on a study that assumes the U.S. continues with
fuel efficiency standards set by the Obama administration. For instance,
he uses Citigroup research based off the assumption that “‘the United
States will continue with strict fuel economy standards that will lower
its oil demand.” Since he promises to undo the Obama administration’s
new fuel efficiency standards, he would cut oil consumption savings of
2 million barrels per day by 2025.
2) “I don’t have a $5 trillion tax cut. I don’t have a tax cut of a
scale that you’re talking about.” A Tax Policy Center analysis of
Romney’s proposal for a 20 percent across-the-board tax cut in all
federal income tax rates, eliminating the Alternative Minimum Tax,
eliminating the estate tax and other tax reductions, would reduce
federal revenue $480 billion in 2015. This amounts to $5 trillion over
the decade.
3) “My view is that we ought to provide tax relief to people in the
middle class. But I’m not going to reduce the share of taxes paid by
high-income people.” If Romney hopes to provide tax relief to the
middle class, then his $5 trillion tax cut would add to the deficit.
There are not enough deductions in the tax code that primarily benefit
rich people to make his math work.
4) “My — my number-one principal is, there will be no tax cut that adds
to the deficit. I want to underline that: no tax cut that adds to the
deficit.” As the Tax Policy Center concluded, Romney’s plan can’t both
exempt middle class families from tax cuts and remain revenue neutral.
“He’s promised all these things and he can’t do them all. In order for
him to cover the cost of his tax cut without adding to the deficit, he’d
have to find a way to raise taxes on middle income people or people
making less than $200,000 a year,” the Center found.
5) “I will not under any circumstances raise taxes on middle-income
families. I will lower taxes on middle-income families. Now, you cite a
study. There are six other studies that looked at the study you describe
and say it’s completely wrong.” The studies Romney cites actually
further prove that Romney would, in fact, have to raise taxes on the
middle class if he were to keep his promise not to lose revenue with his
tax rate reduction.
6) “I saw a study that came out today that said you’re going to raise
taxes by $3,000 to $4,000 on middle-income families.” Romney is
pointing to this study from the American Enterprise Institute. It
actually found that rather than raise taxes to pay down the debt, the
Obama administration’s policies — those contained directly in his budget
— would reduce the share of taxes that go toward servicing the debt by
$1,289.89 per taxpayer in the $100,000 to $200,000 range.
7) “And the reason is because small business pays that individual rate;
54 percent of America’s workers work in businesses that are taxed not at
the corporate tax rate, but at the individual tax rate….97 percent of
the businesses are not — not taxed at the 35 percent tax rate, they’re
taxed at a lower rate. But those businesses that are in the last 3
percent of businesses happen to employ half — half of all the people who
work in small business.” Far less than half of the people affected by
the expiration of the upper income tax cuts get any of their income at
all from a small businesses. And those people could very well be
receiving speaking fees or book royalties, which qualify as “small
business income” but don’t have a direct impact on job creation. It’s
actually hard to find a small business who think that they will be
hurt if the marginal tax rate on income earned above $250,000 per year
is increased.
(8) “Mr. President, all of the increase in natural gas and oil has
happened on private land, not on government land. On government land,
your administration has cut the number of permits and licenses in half.”
Oil production from federal lands is higher, not lower : Production
from federal lands is up slightly in 2011 when compared to 2007. And the
oil and gas industry is sitting on 7,000 approved permits to drill,
that it hasn’t begun exploring or developing.
9) “The president’s put it in place as much public debt — almost as much
debt held by the public as all prior presidents combined.” This is not
even close to being true. When Obama took office, the national debt
stood at $10.626 trillion . Now the national debt is over $16 trillion.
That $5.374 trillion increase is nowhere near as much debt as all the
other presidents combined.
10) “That’s why the National Federation of Independent Businesses said
your plan will kill 700,000 jobs. I don’t want to kill jobs in this
environment.” That study, produced by a right-wing advocacy
organization , doesn’t analyze what Obama has actually proposed.
11) “What we do have right now is a setting where I’d like to bring
money from overseas back to this country.” Romney’s plan to shift the
country to a territorial tax system would allow corporations to do
business and make profits overseas without ever being taxed on it in the
United States. This encourages American companies to invest abroad and
could cost the country up to 800,000 jobs .
12) “I would like to take the Medicaid dollars that go to states and say
to a state, you’re going to get what you got last year, plus inflation,
plus 1 percent, and then you’re going to manage your care for your poor
in the way you think best.” Sending federal Medicaid funding to the
states in the form of a block grant woud significantly reduce federal
spending for Medicaid because the grant would not keep up with projected
health care costs. A CBO estimate of a very similar proposal from Paul
Ryan found that federal spending would be “35 percent lower in 2022 and
49 percent lower in 2030 than current projected federal spending” and as
a result “states would face significant challenges in achieving
sufficient cost savings through efficiencies to mitigate the loss of
federal funding.” “To maintain current service levels in the Medicaid
program, states would probably need to consider additional changes, such
as reducing their spending on other programs or raising additional
revenues,” the CBO found.
13) “I want to take that $716 billion you’ve cut and put it back into
Medicare…. But the idea of cutting $716 billion from Medicare to be able
to balance the additional cost of Obamacare is, in my opinion, a
mistake. There’s that number again. Romney is claiming that Obamacare
siphons off $716 billion from Medicare, to the detriment of
beneficiaries. In actuality, that money is saved primarily through
reducing over-payments to insurance companies under Medicare
Advantage, not payments to beneficiaries. Paul Ryan’s budget plan keeps
those same cuts , but directs them toward tax cuts for the rich and
deficit reduction.
14) “What I support is no change for current retirees and near-retirees
to Medicare.” Here is how Romney’s Medicare plan will affect current
seniors : 1) by repealing Obamacare, the 16 million seniors receiving
preventive benefits without deductibles or co-pays and are saving $3.9
billion on prescription drugs will see a cost increase, 2) “premium
support” will increase premiums for existing beneficiaries as private
insurers lure healthier seniors out of the traditional Medicare program,
3) Romney/Ryan would also lower Medicaid spending significantly
beginning next year, shifting federal spending to states and
beneficiaries, and increasing costs for the 9 million Medicare
recipients who are dependent on Medicaid.
15) “Number two is for people coming along that are young, what I do to
make sure that we can keep Medicare in place for them is to allow them
either to choose the current Medicare program or a private plan. Their
choice. They get to choose — and they’ll have at least two plans that
will be entirely at no cost to them.” The Medicare program changes for
everyone , even people who choose to remain in the traditional
fee-for-service. Rather than relying on a guaranteed benefit, all
beneficiaries will receive a premium support credit of $7,500 on average
in 2023 to purchase coverage in traditional Medicare or private
insurance. But that amount will only grow at a rate of GDP plus 1.5
percentage points and will not keep up with health care costs. So while
the federal government will spend less on the program, seniors will pay
more in premiums.
16) “And, by the way the idea came not even from Paul Ryan or — or
Senator Wyden, who’s the co-author of the bill with — with Paul Ryan in
the Senate, but also it came from Bill — Bill Clinton’s chief of staff.”
Romney has rejected the Ryan/Wyden approach — which does not cap the
growth of the “premium support” subsidy. Bill Clinton and his commission
also voted down these changes to the Medicare program.
17) “Well, I would repeal and replace it. We’re not going to get rid of
all regulation. You have to have regulation. And there are some parts of
Dodd-Frank that make all the sense in the world.” Romney has previously
called for full repeal of Dodd-Frank, a law whose specific purpose is
to regulate banks. MF Global’s use of customer funds to pay for its
own trading losses is just one bit of proof that the financial industry
isn’t responsible enough to protect consumers without regulation.
18) “But I wouldn’t designate five banks as too big to fail and give
them a blank check. That’s one of the unintended consequences of
Dodd-Frank… We need to get rid of that provision because it’s killing
regional and small banks. They’re getting hurt.” The law merely says
that the biggest, systemically risky banks need to abide by more
stringent regulations . If those banks fail, they will be unwound by a
new process in the Dodd-Frank law that protects taxpayers from having
to pony up for a bailout.
19) “And, unfortunately, when — when — when you look at Obamacare, the
Congressional Budget Office has said it will cost $2,500 a year more
than traditional insurance. So it’s adding to cost.” Obamacare will
actually provide millions of families with tax credits to make health
care more affordable.
20) “[I]t puts in place an unelected board that’s going to tell people
ultimately what kind of treatments they can have. I don’t like that
idea.” The Board, or IPAB is tasked with making binding recommendations
to Congress for lowering health care spending, should Medicare costs
exceed a target growth rate. Congress can accept the savings proposal or
implement its own ideas through a super majority. The panel’s plan will
modify payments to providers but it cannot “include any recommendation
to ration health care, raise revenues or Medicare beneficiary
premiums…increase Medicare beneficiary cost-sharing (including
deductibles, coinsurance, and co- payments), or otherwise restrict
benefits or modify eligibility criteria” ( Section 3403 of the ACA ).
Relying on health care experts rather than politicians to control health
care costs has previously attracted bipartisan support and even Ryan
himself proposed two IPAB-like structures in a 2009 health plan.
21) “Right now, the CBO says up to 20 million people will lose their
insurance as Obamacare goes into effect next year. And likewise, a study
by McKinsey and Company of American businesses said 30 percent of them
are anticipating dropping people from coverage.” The Affordable Care
Act would actually expand health care coverage to 30 million Americans,
despite Romney fear mongering. According to CBO director Douglas
Elmendorf, 3 million or less people would leave employer-sponsored
health insurance coverage as a result of the law.
22) “I like the way we did it [health care] in Massachusetts…What were
some differences? We didn’t raise taxes.” Romney raised fees, but he
can claim that he didn’t increase taxes because the federal government
funded almost half of his reforms .
23) “It’s why Republicans said, do not do this, and the Republicans had
— had the plan. They put a plan out. They put out a plan, a bipartisan
plan. It was swept aside.” The Affordable Care Act incorporates many
Republican ideas including the individual mandate, state-based health
care exchanges, high-risk insurance pools, and modified provisions that
allow insurers to sell policies in multiple states. Republicans never
offered a united bipartisan alternative.
24) “Preexisting conditions are covered under my plan.” Only people who
are continuously insured would not be discriminated against because
they suffer from pre-existing conditions. This protection would not be
extended to people who are currently uninsured.
25) “In one year, you provided $90 billion in breaks to the green energy
world. Now, I like green energy as well, but that’s about 50 years’
worth of what oil and gas receives.” The $90 billion was given out over
several years and included loans, loan guarantees and grants through the
American Recovery Act. $23 billion of the $90 billion “went toward
“clean coal,” energy-efficiency upgrades, updating the electricity grid
and environmental clean-up, largely for old nuclear weapons sites.”
26) “I think about half of [the green firms Obama invested in], of the
ones have been invested in have gone out of business. A number of them
happened to be owned by people who were contributors to your campaigns.”
As of late last year, only “ three out of the 26 recipients of 1705
loan guarantees have filed for bankruptcy, with losses estimated at just
over $600 million.”
27) “If the president’s reelected you’ll see dramatic cuts to our
military.” Romney is referring to the sequester, which his running mate
Paul Ryan supported. Obama opposes the military cuts and has asked
Congress to formulate a balanced approach that would avoid the trigger.