It's an easy choice between Barack Obama and Mitt Romney on tax

Compared to Romney, Obama is downright folksy.

President Barack Obama isn't a populist but he plays one on the campaign trail. Like many liberal Democrats, he plays up the down-home rhetoric for votes, but by nature he's a progressive technocrat immanently comfortable trusting the authority of experts. This comes from being the son of an anthropologist and former editor of the Harvard Law Review. This is why he sounded so wooden when attempting to rail against "fat cat bankers," and why he needs Vice President Joe Biden, a natural-born class warrior.

But the president's populist mien stems from more than campaign strategy. It's context, too. Compared to quarter-billionaire Mitt Romney, his Republican challenger in the 2012 presidential election, no-drama Obama appears downright folksy. Sure, working-class Americans don't usually feel kinship with a former constitutional law professor, but that's far better than a guy who owns a dressage champion competing in the 2012 Summer Olympics. It'd be one thing if Romney's horse was a racing steed. Americans understand betting on the ponies. But dressage? First, it sounds kinda French. Second, that means a dancing horse, right?

That's slightly unfair. But Romney isn't helping.

First, he's not being clear about his wealth. He has released only two years of tax returns. This has allowed the Obama campaign to suggest, rightly or wrongly, that he's hiding something. And in fairness, that's a plausible charge given that Romney has cash stashed in the Cayman Islands and Switzerland, and the reason you do that is to avoid the prying eyes of the Internal Revenue Service.

Second, the central claim of his candidacy — that he is an experienced businessman who knows how to create jobs — took a major hit last month after a report in the Washington Post found that Bain Capital, Romney's former Wall Street firm, invested in companies that pioneered the trend of outsourcing jobs.

Romney's reaction was twofold and too dumb — he demanded that the newspaper retract the story (it said no) and he said the reporters didn't know the difference between outsourcing and offshoring. Frankly most people don't, and if you're trying to save face by splitting hairs, good luck to you. You're going to need it.

Third, he rebounds poorly. Parsing "outsourcing" and "offshoring" was just the beginning. Last week, the Associated Press revealed that Romney has investments in a company in Bermuda, raising more questions about transparency and indeed how wealthy Romney actually is. Estimates so far put his wealth at as much as $250m, making him the richest man to run for the White House in recent memory (Obama's wealth is as high as $3m).

And again, Romney stumbled badly: "I don’t manage [those investments], I don’t even know where they are," Romney told a radio station in Iowa, a battleground state. "That trustee follows all U.S. laws, all taxes are paid as appropriate, all of them have been reported to the government. There’s nothing hidden there."

This kind of explanation flies with people who have blind trusts, but not with people who don't have trusts or don't know what trusts are, and sure as hell don't know why they are blind. And anyway, Romney could dispel the ambiguity by releasing more returns just as his father, George, did before making a run for the presidency.

Now Obama is hitting hard: "What’s important is if you are running for president is that the American people know who you are and what you’ve done and that you’re an open book," he told a New Hampshire TV station. "And that’s been true of every presidential candidate dating all the way back to Mitt Romney’s father."

My guess is that Romney won't release more tax returns, because he doesn't want to bring more attention to himself. I say this not because I think he's hiding something (though he may be for all I know), but because Romney wants this election to be a referendum on the president's first term not a choice between him and Obama.

The reason for that is Americans tend to give incumbents the benefit of the doubt, but if Romney can raise enough doubt about the economy — and with a stalled economy on the brink of a double-dip recession, there's good reason for this strategy — he can frame the election as a thumbs-up-thumbs-down vote.

Obama, on the other hand, is doing his best to make this a choice between opposing candidate, parties and ideologies. Yesterday, we saw the latest stage of that strategy when he called for Congress to allow the George W. Bush-era tax cuts for the wealthiest two per cent of income earners to expire at the end of the year.

This is good politics for two reasons. One, most Americans approve of such a measure, partly because taxing the rich lowers the national debt and partly because taxing the rich just feels good. The second reason this is good politics: It puts Romney in a box. Obama highlighted the fact that he himself would be paying higher taxes and that he stood ready to do so. Romney, meanwhile, has said letting the tax cuts expire is bad for small business, which may be true. What's certain is that Obama is setting up a choice.

American voters can choose the rich guy willing to pay more in taxes for the good of his country or the rich guy who didn't.

That, to most Americans, is an easy choice.
 

Mitt Romney's tax affairs are being efficiently used against him by Obama. Photograph: Getty Images

John Stoehr teaches writing at Yale. His essays and journalism have appeared in The American Prospect, Reuters Opinion, the Guardian, and Dissent, among other publications. He is a political blogger for The Washington Spectator and a frequent contributor to Al Jazeera English.

 

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com