Romney in Debate Accuses Obama

Further in Romney’s discussion on October 3, 2012 he said Medicaid would still be shifted to the states but he would give them what they got last year, plus inflation, plus 1% and if the states get in trouble the government can find a way to step in and help them. Obama wasn’t allowed to respond to Romney but I will. The Federal Reserve uses 2% for inflation. So what Romney is now saying is that he’ll increase the cost of Medicaid by 3% to the federal budget (this will reduce the money the states will have to recoup for housing, food stamps and education but they still have to come up with increased revenue). If increasing the money given to the states is his plan it again poses the question where in the budget will money be lost.  

Romney said gas prices doubled, utilities and food prices are up and health care went up $2,500. Per the US Inflation Calculator in 2010 overall inflation was 1.6%, 2011 - 3.2% and January–August 2012 averaged 2.2% (January–April was over 2% and May–August was under 2%). I also found a June 2012 site that said gas prices fell 2.3% in 2012 compared to 2011 but the lower gas prices were offset by year-over-year increases in health care, clothing, food, used cars and trucks, and housing. Gas dropped (until recent refinery issues shot them up) and food went up because of the droughts – not anything the President did. I’ll address health care separately.

Romney said he’s been in business for 25 years and had no idea what the President was talking about when it came to credits for taking business overseas. In 2010 S-3816 Creating American Jobs and Ending Offshoring Act was shot down because it didn’t get the 60 votes needed. Current law permits companies to close down American factories and offices and move the jobs overseas and take a tax deduction for the associated costs. There have been a lot of attempts to get rid of this deduction but corporation lobbyists continue to argue that the loophole is needed to create more jobs. Bain Capital bankrupted and restructured companies (some went overseas) so how could he not be familiar with the law. Another loophole to companies and individuals doing business outside the US is the foreign tax credit which is designed to prevent double taxation on income. Romney’s 2010 tax return shows he got almost $1.6 million in this foreign tax credit and since he continues to say that he doesn’t have a share of a company doing business overseas I’ll assume it’s because he had money in overseas instead of US banks. 

Romney either takes us for complete idiots or he is totally incapable of doing the math or telling the truth.