Another Deceptive Karl Rove Ad. The Ad airs in ten states starting Tuesday night; third spot in $25 million issue advocacy effort supporting New Majority Agenda

Karl Rove’s newest deceptive ad reminds us of what he and Mitt Romney have in common – zero credibility when it comes to debt.Because of the policies of the last administration-massive tax cuts that weren’t paid for, two wars that weren’tpaid for, and the effects of the recession—President Obama entered office facing the largest deficit relative to the economy since World War II. That’s why he slowed federal spending growth to its lowest rate in nearly 60 years, enacted $2 trillion in deficit reduction, and proposed a balanced plan to reduce the deficit by more than $4 trillion over the next decade. Following the playbook of his Republican allies in Washington, Mitt Romney ran up the debt as Governor of Massachusetts – increasing it by 16 percent over four years and leaving the state with the largest per capita debt in the nation. And now he wants to do it again by bringing back the same policies that crashed the economy and devastated the middle class: budget-busting tax cuts for the wealthiest on the middle class’ dime and letting Wall Street write its own rules. Romney Economics didn’t work then and it won’t work now.

Crossroads Was Founded By Former Bush Political Adviser Karl Rove And Former RNC Chair Ed Gillespie. “What makes Crossroads, which was founded by former Bush political adviser Karl Rove and former Republican National Committee chairman Ed Gillespie in 2009, so potent is its demonstrated ability to raise huge amounts of money.” [Washington Post’s The Fix, 4/11/12]

Crossroads Advisor Karl Rove Was President George W. Bush’s Chief Political Advisor.“Karl Rove was President George W. Bush’s chief political adviser from 1994 through 2007, leading him through a series of hard-fought campaigns based on techniques that became Mr. Rove’s political trademark: message discipline, tightly focused efforts to turn out a conservative political base and a relentless hammering at any perceived weakness on the part of an opponent.” [New York Times, 4/10/12]

Karl Rove Helped Bring Together “The Old Coalition Of Millionaires And Billionaires Who Supported Mr. Bush” To Essentially Form “A Shadow Republican Party.”“Most crucially, Mr. Rove played a leading role in building what amounted to a shadow Republican Party, a network of donors and operatives that was a major factor in the Republican effort to capture control of the House and the Senate. He helped summon the old coalition of millionaires and billionaires who supported Mr. Bush and had huge financial stakes in regulatory and tax policy, like Harold C. Simmons, a Texas billionaire whose holdings include a major waste management company that handles some radioactive materials; Carl H. Lindner Jr., a Cincinnati businessman whose American Financial Group includes several property and casualty insurance concerns; and Robert B. Rowling, whose TRT Holdings owns Omni Hotels and Gold’s Gym.” [New York Times, 4/10/12] 

Crossroads President Steven Law: Karl Rove Spends “An Awful Lot” Of Time Contributing To Crossroads And Is Also A “Tremendous” Help With Fundraising.“Asked how much Rove contributes, Law says, ‘He just gives us time when we ask for it, and we ask for it an awful lot, but I talk to him quite a lot about what’s going on in the country, about how he sees, for example, the presidential election, and he’s also a tremendous help to us on the fundraising side as well.’” [Steven Law, Newsmax Interview, 3/19/12]

Crossroads President Steven Law Was Deputy Secretary Of The U.S. Department Of Labor Under George W. Bush.“Prior to his stint at the U.S. Chamber, Law was deputy secretary of the U.S. Department of Labor under President George W. Bush, where he championed new financial transparency and ethics reforms for labor unions. Under Law’s leadership, the Department cut spending and was ranked the best managed agency in the Executive Branch.” [AmericanCrossroads.org, Accessed 5/3/12] 

Crossroads Board Chairman Mike Duncan Served In The Bush Administration.“Duncan has served on the campaigns of five Presidents, including Richard Nixon, Gerald Ford, Ronald Reagan, George H. W. Bush and George W. Bush. He has been a delegate to seven Republican National Conventions. Duncan also served George H. W. Bush as Assistant Director of Public Liaison. President George W. Bush appointed him to the President’s Commission on White House Fellows in 2001 and later nominated him to the Tennessee Valley Authority board.” [AmericanCrossroads.org, Accessed 5/3/12] 

PRESIDENT OBAMA ENTERED OFFICE FACING THE LARGEST DEFICIT RELATIVE TO THE ECONOMY SINCE WORLD WAR II, AS BUSH-ERA TAX CUTS, WAR SPENDING, AND THE EFFECTS OF THE RECESSION TOOK THE UNITED STATES FROM HEALTHY SURPLUSES TO DEFICITS

PRESIDENT OBAMA ENTERED OFFICE FACING THE LARGEST DEFICIT RELATIVE TO THE ECONOMY SINCE WORLD WAR II

The Deficit For Fiscal Year 2009, Which Began More Than Three Months Before President Obama’s Inauguration, Was The Largest Deficit Relative To The Economy Since The End Of World War II. “The deficit for fiscal year 2009 — which began more than three months before President Obama’s inauguration — was $1.4 trillion and, at 10 percent of Gross Domestic Product (GDP), the largest deficit relative to the economy since the end of World War II. At $1.3 trillion and nearly 9 percent of GDP, the deficit in 2010 was only slightly lower. If current policies remain in place, deficits will likely resemble those figures in 2011 and hover near $1 trillion a year for the next decade.” [Center On Budget And Policy Priorities, 5/10/2011]

BUSH-ERA TAX CUTS, WAR SPENDING IN IRAQ AND AFGHANISTAN, AND THE EFFECTS OF THE RECESSION LARGELY TOOK THE UNITED STATES FROM HEALTHY SURPLUSES TO NEARLY A DECADE OF DEFICITS

In 2001, President George W. Bush Inherited A Surplus, But Every Year Starting In 2002, The Budget Fell Into Deficit. “The first graph shows the difference between budget projections and budget reality. In 2001, President George W. Bush inherited a surplus, with projections by the Congressional Budget Office for ever-increasing surpluses, assuming continuation of the good economy and President Bill Clinton’s policies. But every year starting in 2002, the budget fell into deficit.” [Teresa Tritch, Editorial, New York Times,7/23/11]

Bush-Era Tax Cuts, War Spending In Iraq And Afghanistan, And The Effects Of The Recession Largely Took The United States From Healthy Surpluses To Nine Straight Years Of Deficits, Including The $1.3 Trillion Shortfall In 2010.  “With President Obama and Republican leaders calling for cutting the budget by trillions over the next 10 years, it is worth asking how we got here — from healthy surpluses at the end of the Clinton era, and the promise of future surpluses, to nine straight years of deficits, including the $1.3 trillion shortfall in 2010. The answer is largely the Bush-era tax cuts, war spending in Iraq and Afghanistan, and recessions.” [Teresa Tritch, Editorial, New York Times,  7/23/11]

Fifty Nine Percent Of The Shift From Surplus To Deficit By 2011 Is Directly Attributable To Bush Administration Policies, While Only 12 Percent Is Attributable To The Obama Administration’s Policies. According to the Department of Treasury, in January 2001, CBO projected cumulative surpluses would total $5.9 trillion through 2011. Instead, cumulative deficits have totaled $6 trillion. A U.S. treasury analysis based on CBO data shows that fifty-nine percent of the shift from surpluses to deficits is attributable to Bush administration policies including Bush-era tax cuts, the wars in Iran and Afghanistan, changes to Medicare Part D, and other spending. Twenty nine percent of the shift from surpluses to deficits is attributable to conditions unrelated to legislation, including updated economic and demographic projections. Twelve percent is attributable to Obama administration policies, including the Recovery Act, the December 2010 tax law, and other spending and tax cuts. [U.S. Department Of Treasury Calculations Based On Congressional Budget Office Data, U.S. Department Of Treasury, 2/19/12] 

PRESIDENT OBAMA HAS WORKED TO RESTORE FISCAL RESPONSIBILITY, ENACTING $2 TRILLION IN DEFICIT REDUCTION AND PUTTING FORTH A PLAN TO RESPONSIBLY REDUCE THE DEFICIT BY $4 TRILLION OVER THE NEXT DECADE

The President’s Budget, Incorporating Deficit Reduction Enacted In 2011, Would Cut The Deficit By More Than $4 Trillion Over The Next Decade. “That is why in this Budget, the President again has put forward a plan that will, together with the deficit reduction enacted last year, cut the deficit by more than $4 trillion over the next decade. This would put our Nation on the right course toward a level of deficits of below 3 percent of GDP by the end of the decade.” [FY2013 Budget, White House Office Of Management And Budget, p.2 , February 2012]

President Obama Signed The Budget Control Act, Which Included $2 Trillion In Deficit Reduction.“The Budget Control Act (BCA) of 2011 imposed caps on discretionary programs that will reduce their funding by more than $1 trillion over the ten years from 2012 through 2021, relative to the Congressional Budget Office (CBO) baseline from 2010.  It also established a Joint Select Committee on Deficit Reduction to propose legislation reducing deficits by another $1.2 trillion over that period, and established a backup “sequestration” procedure to increase the incentive on the Joint Committee to reach a compromise.”[Center On Budget And Policy Priorities,]   

President Obama’s Budget Would Bring Discretionary Spending To Its Lowest Level As A Share Of The Economy Since President Eisenhower Was In Office.“In Au­gust 2011, the President signed into law the BCA, which put in place a down payment toward defi­cit reduction and a structure to accomplish even more. The BCA included a cap on discretionary spending that would achieve approximately $1 trillion in deficit reduction over the next decade. In 2012, the Congress worked in a bipartisan way to meet the caps that were agreed to in the BCA. As we turn to 2013, the caps, in combination with the drawdown in overseas contingency opera­tions proposed in this Budget, would bring dis­cretionary spending to its lowest level as a share of the economy since Dwight D. Eisenhower sat in the Oval Office.” [FY2013 Budget, White House Office Of Management And Budget,February 2012]

CONTRARY TO REPUBLICAN CLAIMS, UNDER PRESIDENT OBAMA FEDERAL SPENDING IS RISING AT THE SLOWEST PACE SINCE DWIGHT EISENHOWER WAS IN THE OVAL OFFICE

Under President Obama Federal Spending Is Rising At The Slowest Pace Since Dwight Eisenhower Brought The Korean War To An End In The 1950s. “Of all the falsehoods told about President Barack Obama, the biggest whopper is the one about his reckless spending spree. As would-be president Mitt Romney tells it: “I will lead us out of this debt and spending inferno.” Almost everyone believes that Obama has presided over a massive increase in federal spending, an “inferno” of spending that threatens our jobs, our businesses and our children’s future. Even Democrats seem to think it’s true. But it didn’t happen. Although there was a big stimulus bill under Obama, federal spending is rising at the slowest pace since Dwight Eisenhower brought the Korean War to an end in the 1950s.” [Rex Nutter, MarketWatch, 5/22/12]

Politifact Rated A Claim Based On Rex Nutting’s Article “Mostly True,” Stating “Obama Has Indeed Presided Over The Slowest Growth In Spending Of Any President Using Raw Dollars.”  “The Facebook post says Mitt Romney is wrong to claim that spending under Obama has “accelerated at a pace without precedent in recent history,” because it’s actually risen “slower than at any time in nearly 60 years.” Obama has indeed presided over the slowest growth in spending of any president using raw dollars, and it was the second-slowest if you adjust for inflation. The math simultaneously backs up Nutting’s calculations and demolishes Romney’s contention. The only significant shortcoming of the graphic is that it fails to note that some of the restraint in spending was fueled by demands from congressional Republicans. On balance, we rate the claim Mostly True.” [PolitiFact, 5/23/12] 

PolitiFact: “The Math Simultaneously Backs Up Nutting’s Calculations And Demolishes Romney’s Contention.” [PolitiFact, 5/23/12] 

Washington Post’s Eugene Robinson: Federal Spending Increased At An Annual Rate Of 1.4 Percent Under President Obama, The Smallest Increase In Spending Of Any Recent President, Compared With 7.3 Percent Under President Bush.“Quite the contrary: Spending has increased at a yearly rate of only 1.4 percent during Obama’s tenure, even if you include some stimulus spending (in the 2009 fiscal year) that technically should be attributed to President George W. Bush. This is by far the smallest — I repeat, smallest — increase in spending of any recent president…In Bush’s first term, by contrast, federal spending increased at an annual rate of 7.3 percent; in his second term, the annual rise averaged 8.1 percent. Reagan comes next, in terms of profligacy, followed by George H.W. Bush, Bill Clinton and finally Obama, the thriftiest of them all.” [Eugene Robinson, Washington Post, 5/28/12]

ROMNEY WOULD MAKE PERMANENT THE BUSH TAX CUTS FOR THE WEALTHIEST AND ADD TRILLIONS TO THE DEFICIT

Romney’s Tax Plan Includes An Extension Of The Bush Tax Cuts.“Governor Romney would permanently extend all the 2001 and 2003 tax cuts now scheduled to expire in 2013.” [Tax Policy Center, The Romney Plan (updated), 3/1/12]

Economic Policy Institute: “Bush-Era Tax Cuts Conferred Disproportionate Benefits On Those At The Top Of The Earnings Distribution,” “The Top 1% Of Earners (i.e., Tax Filers Making Over $645,000) Received 38% Of The Breaks.” [Andrew Fieldhouse and Ethan Pollack, Economic Policy Institute, 6/1/11]  

Center On Budget And Policy Priorities: Romney’s New Tax Cuts Would Cost $4.9 Trillion Over A Decade, On Top Of The Cost Of Extending The Bush Tax Cuts.“The Tax Policy Center estimates that the Romney tax plan would lose about $480 billion in tax revenue in calendar year 2015, beyond the revenues losses inherent in maintaining current policy (such as continuing all of the 2001 and 2003 Bush tax cuts).  Over the 2014-2022 period, that implies a total reduction in revenues of about $4.9 trillion, relative to current tax policy.” [Center on Budget and Policy Priorities, 5/21/12]

UNDER ROMNEY, DEBT IN MASSACHUSETTS INCREASED BY 16 PERCENT IN FOUR YEARS

Under Romney, Massachusetts’ Long-Term Debt Increased By 16.4% Or $2.6 Billion. According to Massachusetts Information Statement Supplements attached to bond offerings, the Commonwealth had $16,063,162,000 in long-term debt as of January 1, 2003. As of October 1, 2006, shortly before Romney left the Governor’s Office, Massachusetts had $18,697,240,000 in long-term debt. This was an increase of $2,634,078,000 or 16.4%. [Massachusetts Office Of The Treasurer, Commonwealth of Massachusetts, Information Statement Supplement, 2/28/03, p. A-22; Massachusetts Office Of The Treasurer, Commonwealth of Massachusetts, Statement Of Information Supplement, 11/10/06, p. A-24]

2007: Massachusetts Was First In The Nation In Net Tax Supported Debt Per Capita.”Nevertheless, the Commonwealth’s debt burden remains among the highest in the nation by certain measures. Moody’s Investors Service ranks Massachusetts fourth in total net tax-supported debt, fourth in total gross tax-supported debt (down from third in 2007), second in net tax-supported debt as a percentage of personal income, and second in net tax-supported debt per capita (down from first in 2007).” [Governor’s Five Year Capital Investment Plan, accessed 4/22/11] 

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