Al-Jazeerah: Cross-Cultural Understanding
News, December 2011
Ron Paul Leads in Iowa as Gingrich Support Erodes, Poll
Ron Paul is the only serious Republican presidential candidate. He calls for ending America's wars, which were responsible for the recent American financial and economic disasters. Most importantly, he is not a stooge of the Israeli Lobby, which controls American politics, like the rest of the Republican candidates.
Paul Leads in Iowa as Gingrich Support Erodes, Poll
By Paul Eckert
WASHINGTON | Mon Dec 19, 2011 10:46am EST, (Reuters) -
Republican presidential hopeful Newt Gingrich suffered a big drop in support in Iowa with Ron Paul taking the lead weeks before a key caucus in the state, according to a Democratic polling firm.
The Public Policy Polling telephone survey of 597 likely Republican caucus voters in Iowa found Paul, a congressman from Texas, leading with 23 percent of the vote, followed by 20 percent for former Massachusetts Governor Mitt Romney and 14 percent for Gingrich.
"Newt Gingrich's campaign is rapidly imploding and Gingrich has now seen a big drop in his Iowa standing two weeks in a row," the polling firm, which is affiliated with the Democratic Party, said in a statement.
Gingrich's share of the vote in the past two weeks has gone from 27 percent to 22 percent to 14 percent, in the latest poll, taken Dec 16-18, with a margin of error for the survey of plus or minus four points, it said.
Gingrich's personal favorability numbers also fell during the past fortnight from plus 31 to plus 12 to a minus 1 now among Iowa voters polled ahead of the Iowa caucus on January 3, the polling firm said.
Among the other candidates in the race to oppose Democratic President Barack Obama's 2012 re-election bid, Rick Santorum, Michele Bachmann, and Rick Perry each received 10 percent of the votes, while 4 percent went for Jon Huntsman, and 2 percent for Gary Johnson, it said.
The libertarian-leaning Paul's unusual rise to the top of a poll comes amid a strong campaign in Iowa, the pollsters said. But they said his popularity depended heavily on the youth vote and he trailed both Romney and Gingrich among older voters.
Gingrich reached the top of the Republican field last month as the favored conservative alternative to former Massachusetts Governor Mitt Romney. But his front-runner status has prompted attacks from rivals that he is an unreliable conservative and influence peddler, particularly over fat fees he earned from Freddie Mac, a mortgage giant tied to the economic recession.
(Reporting By Paul Eckert; Editing by Bill Trott)
Romney still making millions from Bain: report
Mon Dec 19, 2011 5:13am EST
WASHINGTON (Reuters) -
Republican White House hopeful Mitt Romney receives millions of dollars a year in a retirement agreement with Bain Capital, nearly 13 years after he left the private equity firm he helped start, the New York Times said on Monday.
In the final deal of his private equity career, Romney negotiated an agreement with his former partners that has paid him a share of Bain's profits ever since, bringing his family millions in income each year and bolstering the fortune that has helped finance his political aspirations, the paper said.
After Romney left Bain, the company grew into a global investing behemoth, buying and restructuring companies. His retirement agreement, the Times noted, may expose him to criticism that while pursing a career in public life, he has grown wealthier partly from Bain laying off workers at companies it has bought - a charge that routinely resurfaces on the campaign trail.
A second point of controversy could be that his Bain profits may qualify for a lower tax rate than ordinary income under a tax provision favorable to private equity managers - a point of contention in fierce arguments over whether tax rates on the wealthy should be raised.
Romney is a leading candidate to become the Republican nominee to challenge President Barack Obama next November.
He has been highlighting his business experience, saying it gives him a better understanding than the president and his Republican rivals of how to energize the U.S. economy and create jobs. At the same time, he has deflected criticism of layoffs caused by private equity deals by noting he left Bain in 1999.
The Times said records and interviews show that in the years since then he has benefited from at least a few Bain deals that resulted in upheaval for companies, workers and communities.
One deal involved KB Toys, a Pittsfield, Massachusetts, company that one of Bain's partnerships bought in 2000. The Times said that three years later, when Romney was governor of that state, Bain began laying off thousands of employees.
Bain also helped lead the private equity purchase of the big radio station operator Clear Channel Communications, a deal that eventually resulted in 2,500 job cuts.
Since Romney's payouts come partly from Bain's share of profits on its customers' investments, that income probably qualifies for the 15 percent tax rate on capital gains rather than the 35 percent wealthy taxpayers pay on ordinary income, the Times said.
The Internal Revenue Service allows investment managers to pay this lower rate on profits, known in the industry as "carried interest." Such options are not available to the ordinary taxpayer.
Spokesmen for Bain and Romney were not immediately available for comment on the report, published overnight in New York.
The newspaper said that Romney had declined to release his tax returns, while his campaign refused to say what tax rate he paid on his Bain earnings. It said a Bain spokesman declined to comment on the retirement agreement, citing confidentiality.
"This was a typical market deal. Bain Capital has no incentive to overpay Governor Romney, and they didn't," Andrea Saul, a spokeswoman for Romney, was quoted as telling the paper.
While some former business associates said they considered the retirement deal generous, others said Romney might have had even more from Bain had he not wanted a quick move into public life. "He made a very sweet deal, he had a very good exit," one former Bain partner told the Times.
"But my guess is, given the actual economic value of Bain Capital at the time, Mitt walked away with less than he could have if he did not take into account the adverse publicity and attention that a battle with former partners would have caused if he had negotiated and played hardball."
According to the newspaper, in 1999 Bain had about $4 billion in assets under management, 100 or so employees and a single office, in Boston. In 2005, Bain had over $21 billion in its funds. Today, Bain manages about $66 billion overall, with 900 employees and 10 offices in six countries.
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Opinions expressed in various sections are the sole responsibility of their authors and they may not represent Al-Jazeerah & ccun.org.
firstname.lastname@example.org & email@example.com