FACT CHECK: Romney Didn’t Build That. He Destroyed It.
Mitt Romney is relying on a false and out of context attack because his record is not one of creating jobs or businesses, it’s one of destroying them. As a corporate buyout specialist, Romney actually received millions of dollars in government aid for his businesses. When he was Governor, Romney’s jobs record was one of the worst in the country and the rate of new start-ups in Massachusetts was lower than the national average, declining during Romney’s tenure. Now, the Romney-Ryan tax hike could put 30 million small business owners at risk of a tax hike in order to cut taxes for millionaires and billionaires. That certainly won’t help Americans build businesses or create jobs.
BLOOMBERG BUSINESSWEEK: “ROMNEY CRITICAL OF GOVERNMENT AID THAT HELPED BAIN PROFIT”
Bloomberg Businessweek: Romney Accuses Government Of “Standing In The Way” Of Recovery, But Government Officials Helped Bain Owned Companies. “The two-time presidential candidate says his business experience qualifies him to turn around the troubled national economy. He accuses government of ‘standing in the way’ of recovery. Yet, government officials employed a variety of techniques to help Bain-owned companies.” [Bloomberg Businessweek, 6/5/12]
Bloomberg Businessweek: Under Romney, Bain Capital “Received Millions Of Dollars In Benefits From A Variety Of State And Local Government Economic Development Programs.” “Mitt Romney likes to say that ‘government does not create prosperity.’ His record in the private equity industry shows otherwise. During Romney’s years as chief executive of Bain Capital LLC, companies owned by the firm received millions of dollars in benefits from a variety of state and local government economic development programs.” [Bloomberg Businessweek, 6/5/12]
Bloomberg Businessweek: “As A Private Equity Investor, Romney Showed No Reluctance To Accept Help From Government Coffers.” [Bloomberg Businessweek, 6/5/12]
ROMNEY’S JOBS RECORD IN MASSACHUSETTS WAS ONE OF THE WORST IN THE COUNTRY – HIS CLAIMS CLASH WITH REALITY
Los Angeles Times Headline: “Romney's Spotty Jobs Record; He Says He Can Get The Nation Back To Work. That Wasn't The Case In Massachusetts.” [Los Angeles Times, 7/10/11]
Washington Post Headline: “As Massachusetts Governor, Romney’s Record On Jobs Was Unremarkable” [Washington Post, 2/7/12]
Associated Press Headline: “Romney's Economic Turnaround Claims Clash With Record In Massachusetts.” [Associated Press, 2/4/08]
During Romney’s Tenure As Governor Massachusetts’ Economic Performance Was “One Of The Worst In The Country” And “On All Key Labor Market Measures, The State Not Only Lagged Behind The Country As A Whole, But Often Ranked At Or Near The Bottom Of The State Distribution.” Andrew Sum and Joseph McLaughlin wrote in the Boston Globe: “As Mitt Romney pursues his bid for the presidency, his record as Massachusetts governor will come under scrutiny, including how the state’s economy performed during his administration. Our analysis reveals a weak comparative economic performance of the state over the Romney years, one of the worst in the country. On all key labor market measures, the state not only lagged behind the country as a whole, but often ranked at or near the bottom of the state distribution.” [Sum and McLaughlin, Op-Ed, Boston Globe, 7/29/07]
UNDER ROMNEY, THE RATE OF NEW START-UPS IN MASSACHUSETTS SLOWED, LAGGING THE NATION
Start-Up Creation In Massachusetts Declined Over The Course of Romney’s Tenure. During the fourth quarter of 2002—the quarter before Romney took office, 4,510 establishments were born in Massachusetts. During the 4th quarter of 2006—his final quarter—only 4,026 establishments were born. As a whole, 2006 had the lowest level of establishment births since 1993, when state data is first available. [BLS.gov, accessed 6/4/2012]
By The Time Romney Left Office, More Business Establishments Were Going Out Of Business Than Being Created. In 2002, the year before Romney took office, Massachusetts on average had 4,517 new start-ups per quarter compared to 4,334 business “deaths.” By 2006, there were an average 4,084 new start-ups per quarter in Massachusetts compared to 4,099 business deaths. [BLS.gov, accessed 6/4/2012]
The Average Rate Of Start-up Creation Was Lower Than The National Average During Romney’s Tenure. In total, the average start-up creation rate for Massachusetts from the 1th quarter of 2003 to the 4th quarter of 2006 was 2.7%, while it was 3.2% for the nation. [BLS.gov, accessed 6/4/2012]
THE ROMNEY-RYAN TAX HIKE COULD RAISE TAXES FOR 30 MILLION SMALL BUSINESS OWNERS
If Romney’s Tax Plan Was Paid For, Taxpayers Making Less Than $200,000 Would See Average Tax Increases. [Tax Policy Center, On The Distributional Effects Of Base-Broadening Income Tax Reform, p. 16, 8/1/12]
Politifact: “To Make Romney’s Plan Revenue Neutral,” Those Making Less Than $200,000 Would “See Outright Tax Increases.” “But to make Romney's plan revenue neutral, deductions would also have to be removed for people with incomes below $200,000, and the effects of that would be significant, the study found. In fact, the elimination of the deductions would mean outright tax increases for everyone with incomes below $200,000. People with taxable income between $50,000 and $75,000, for example, would see an average net tax increase of $641. They’d save $984 from Romney's rate cut, but lose $2,672 in write-offs.” [Politifact, 8/3/12]
Tax Policy Center: Nearly 30 Million Americans With Business Income Earn Less Than $200,000. According to Tax Policy Center data on tax units with business income, there are: 2,762,000 that earn less than $10,000; 3,089,000 that earn between $10,000 and $20,000; 2,983,000 that earn between $20,000 and $30,000; 2,904,000 that earn between $30,000 and $40,000; 2,558,000 that earn between $40,000 and $50,000; 4,796,000 that earn between $50,000 and $75,000; 3,861,000 that earn between $75,000 and $100,000; and 6,568,000 that make between $100,000 and $200,000. In total, there are 29,522,000 tax units with business income that earn less than $200,000. [Tax Policy Center, T11-0148 - Baseline Distribution of Business Income, by Cash Income Level; Current Law, 2011, 6/7/11]