Obama ad leaves out important explanation - 13abc.com Toledo (OH) News, Weather and Sports

Obama ad leaves out important explanation

Posted: Updated:
13abc.com Bill Hormann - email

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  • Tuesday, October 16 2012 6:09 PM EDT2012-10-16 22:09:42 GMT
    We look at Republican Mitt Romney's claim he can create 12-million jobs.  Here's the ad that's running on local airwaves. "Let me tell you how I'll create 12-million jobs when President Obama couldn't"Mitt
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President Obama is running another ad that implies Republican Mitt Romney pays too little investment tax.

"You made on your investments personally about 20-million dollars last year."

CBS News anchor Scott Pelley asked Mitt Romney about paying just 14-percent federal tax on his investment income last year...

"Is that fair to the guy who makes 50,000 a year and pays a higher rate than you did? so you think it is fair."

"Yeah, I think it's the right way to encourage economic growth."
 
But the ad produces a white flash butting two Pelley pieces of sound together.  That effect edits out Romney's explanation on **why** he thinks the 14-percent rate is fair.

Here's what the ad... *does not* show you.  We found it on a Webcast posted on YouTube at about 1:27 into the Webcast.

"Is that fair to the guy who makes $50,000 a year a pays a higher rate than you did?"

"It is a low rate and one of the reasons why the capital gains tax rate is lower is because capital has already been taxed once at the corporate rate which is 35-percent."

To leave that part out is misleading.

Toledo-based financial advisor, Alan Lancz, tells 13abc reporter Bill Hormann "Romney's tax rate on investment income is set so there's nothing he can do."

Lancz says the rate was lowered under the Bush tax cuts to encourage investment to help fuel the economy and millions of middle class aAericans pay the same rates on *their investments*.

Those  rates are set to nearly triple next year when the Bush tax cuts expire.
 
Lancz tells 13abc that increase "is going to have a rippling effect across all seniors and investors and I think that's where it really could hurt the economy."

And if you consider all the federal, state, local and real estate taxes Romney paid and factor in his deductions which included more than $2-million to charity, he kept 42-percent of his investment income.

A person making $50-thousand a year kept 56-percent of their income.

So  the ad leaves out some important information... and it implies Romney unjustifiably keeps 86-precent of his income... and it doesn't explain that investment money is taxed differently from income money because most money people invest was taxed before they got it.

For these reasons, we believe the ad is MISLEADING.

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