Opinion

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Romney’s tax audit, Aurora and risk, inside the IRS

Steven Brill
Jul 30, 2012 19:20 UTC

1. What happened with Romney’s audit?

On Sunday, Mitt Romney – while promising ABC he would “go back and check” to see if he had ever paid less than the 13.9 percent in income taxes he reported paying in the only return he has released so far – volunteered that he had been audited in the past by the IRS. So, the next question needs to be, “Governor, when you were audited, did the IRS then require you to pay additional taxes, and, if so, would you specify the discrepancy between what you claimed and what the IRS determined was the appropriate tax? And was more than one year of returns audited? If so, what were the results of those other audits?”

2. Aurora and risk:

When I saw reports in the wake of the Aurora massacre that theater chains are thinking about how they might implement new security measures to restrict who can bring what into a theater, I was reminded of a story I read recently about what happened in the aftermath of a horrific air crash 16 years ago.

Most of us have only a dim memory of TWA Flight 800, the Boeing 747 that exploded over the Atlantic shortly after leaving Kennedy Airport for Paris on the night of July 26, 1996.

An investigation found that the oxygen had ignited in the jet’s fuel tank, and that this was probably caused by excessive heat because the plane had been sitting for hours on a hot summer runway before taking off. But despite all the headlines and speculation in the days immediately following the crash, attention faded, and not much was done until July 16, 2008 – 12 years after the accident. Only then did the Federal Aviation Administration get around to issuing an order that airlines had to retrofit thousands of potentially vulnerable planes with a safety feature designed to prevent the kind of explosion that downed Flight 800.

However, according to this report in the trade e-newsletter Aviationpros.com published two weeks ago on the 12th anniversary of the crash, it turns out that the airlines still haven’t installed the required flammable suppression systems on most of their planes. In fact, they may not meet the FAA’s 2014 deadline for retrofitting just half of their jets and a 2017 deadline to retrofit all of them. That’s right: The FAA set the deadline for 2017, 21 years after the explosion. And the airlines aren’t going to make the changes even by then.

Pinning Romney down on taxes

Steven Brill
Jul 19, 2012 21:23 UTC

The press is missing a trick in continuing to ask Governor Romney only whether he’s going to release more than his most recent tax returns. That allows him to say either yes or no (for now, it’s no), which produces no information. So no news gets made. But there are lots of other ways to get at the Romney tax issue by asking him a variety of different questions, for which even a refusal to comment would be news.

All these questions should begin with something like this: “Governor, we know you feel that releasing additional tax returns will invade your privacy and that of your family and, as you have asserted, allow the Obama campaign to pick through thousands of pages and come up with more distortions and half-truths. So if you are not going to release the returns, could you just tell us this:

Reporters could then choose from among these follow-on questions:

1. In the last 10 years have you ever paid less than 10 percent of your adjusted gross income in federal income taxes? If you don’t know offhand, could you ask your accountant to tell us? (On different days reporters could substitute 7 percent, 5 percent or 2 percent as the benchmark.)

Campaign questions, the world’s worst government agency, and medical lobbies

Steven Brill
Jan 17, 2012 14:28 UTC

1. Mitt’s tax bracket:

Note to television producers or editors about to do interviews with Mitt Romney on the campaign trail: The tax rate for the lower-middle class and middle class (joint filers earning roughly $17,000 to $70,000) is 15%. So any of your reporters doing an interview with Romney should ask him if he paid more than 15% of his total income in federal income taxes last year, or more than 25% — the bracket for income from $70,001 to $142,700.

Because of preferential treatment of capital gains, of “carried interest” income earned by people in the private equity business, and of money derived from offshore investments, as well as other tax breaks, there’s a good chance that Romney didn’t pay at a rate of 25% or even 15%. Be sure to use “total income” in the question, which would be Romney’s income before taking deductions for many of the tax breaks not available to average wage earners. Update: Shortly after this column was published, Romney was asked precisely this question, and told reporters that he paid “closer to the 15% rate than anything.”

Romney’s likely answer, based on what he has said so far, will be that he has not decided to release his tax returns but that he may do so later.

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