When President Obama said earlier this year that the “private sector was doing fine,” Mitt Romney’s presidential campaign jumped on the comment as a sign that Obama was out of touch with reality. Romney, however, made a similar remark last night at a fundraiser in Minnesota, telling the donors that “Big business is doing fine in many places,” as CBS news reports:
“We’ve got to make it easier for small businesses,” Romney said to a group of 300 at the Lafayette Club in this Minneapolis suburb. “Big business is doing fine in many places – they get the loans they need, they can deal with all the regulation. They know how to find ways to get through the tax code, save money by putting various things in the places where there are low tax havens around the world for their businesses.“
Romney’s comments aren’t incorrect — if anything, they are understated. America’s corporations are raking in record profits and their chief executives are making more money than ever (American workers, unfortunately, haven’t shared in the prosperity). But if Romney knows that big businesses are doing fine, it’s worth wondering why he feels the need to shower them with massive tax cuts and make it easier for them to utilize the offshore tax havens he mentioned.
Romney’s tax plan gives corporations more than a trillion dollars in tax cuts — more than $900 billion in cuts to the corporate tax rate and the rest through reforms that shift America to a territorial tax system that would make it easier for corporations to outsource jobs and store their money in offshore tax havens. That plan, just like Romney’s tax cut for the wealthy, would be paid for by American workers and could cost middle class families as much as $4,000 a year.
And while Romney insists that “we’ve got to make it easier for small businesses,” he ignores the fact that the very offshore tax havens he says are helping big businesses — the same ones he has used and would make it easier for them to use too — are hurting the smaller companies. America loses more than $60 billion to corporate tax dodging each year, and in 2010, making up that revenue cost the average small business $2,116, according to Citizens for Tax Justice. And given that many small business owners are also middle class taxpayers, Romney’s plan will cost them even more money by making them pay for his tax cuts for corporations and the rich.