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Ad Watch: Special Interest Spending Against Sherrod Surpasses $21 Million As Karl Rove Returns With Another Misleading Ad To Distract From Latest Mandel Fundraising Scandal

Breaking Reports Found Mandel Accepted More Than $60,000 From Murray Energy Company That Allegedly Forced Employees To Donate 

Desperate to distract from breaking news reports that Josh Mandel accepted $60,000 from employees, PACs and subsidiaries of Murray Energy who were allegedly forced to make political donations, Karl Rove is back on Ohio airwaves with yet another false and misleading ad attacking Sherrod.

The original report by The New Republic suggested, based on employee interviews and leaked documents, that Murray Energy employees were coerced into donating to Republican candidates for state and national office. Mandel received the most money from Murray Energy of all Ohio state officeholders.

This isn’t Mandel’s first run-in with Murray Energy, nor is it his first fundraising scandal this cycle. In August it was reported that Murray Energy forced its employees to miss a full day’s pay in order to act as political pawns during a Mandel-Romney rally, and Mandel was shamed into returning $105,000 in campaign donations after their connection to an ongoing FBI investigation was revealed.

 Crossroads GPS – Vision, :30 – 10/9/12

CLAIM

FACTS

 

Announcer:  “Senator Sherrod Brown’s vision for Ohio jobs is out of focus.  Sherrod Brown supported President Obama’s $453 billion tax increase.”

 

On Screen:  Sherrod Brown Supported $453 Billion Tax Increase [CQ Vote #160 10/11/11; CBO 10/7/11]

 

 

The Vote Cited By Crossroads As A “Tax Increase” Was Actually A Tax Cut For Ohio Families And Businesses

 

Vote Cited By Crossroads As A Tax Increase Actually Provided Typical Ohio Families And Businesses With $1,500 In Tax Relief.  In October 2011, The Toledo Blade wrote “credible independent economists agree that the President’s jobs bill would promote significant, timely economic growth and job creation. It would extend a temporary payroll tax cut for workers – the typical Ohio family would get more than $1,500 in tax relief – and businesses.”  [Toledo Blade, editorial, 10/14/11]

 

Brown Voted To Provide $245 Billion In Tax Incentives And $100 Billion In Infrastructure And State Aid.  In October 2011, Senator Brown voted in favor of the motion to invoke cloture (thus limiting debate) on the Reid, D-Nev., motion to proceed to the bill that would provide roughly $245 billion in tax incentives and more than $100 billion in new infrastructure spending and state aid. [Vote 160,10/11/11]

 

“Employers Who Actually Hire Workers Or Give Raises Would Be Eligible For Further Tax Breaks.”  In an October 2011 editorial,The Toledo Blade wrote “Employers who actually hire workers or give raises would be eligible for further tax breaks. Long-term unemployed workers would get extended jobless benefits, along with opportunities for internships and training.”  [Toledo Blade, editorial, 10/14/11]

 

“The Package … Is Weighted Toward Tax Cuts, Which Account For More Than Half The Dollar Value Of The Plan.”  In September 2011, Bloomberg reported “The package, which the president outlined in a Sept. 8 address to a joint session of Congress, is weighted toward tax cuts, which account for more than half the dollar value of the plan. The rest would provide money for improving infrastructure, modernizing schools and aid for states to keep teachers and emergency workers on the job.”  [Bloomberg, ellipses added, 9/12/11]

 

Economists At Goldman Sachs, Moody’s, And JP Morgan Estimated The Plan Would Create 1.9 Million Jobs And Add 2% To GDP.  In September 2011, Bloomberg reported “Economists at Goldman Sachs Group Inc., Moody’s Analytics Inc. and JPMorgan Chase & Co. said last week that the U.S. economy would get a boost of up to 2 percent under Obama’s plan. Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania, said the proposal would create 1.9 million jobs and lower the unemployment rate by one percentage point compared with current policy. He forecast it would add 2 percent to next year’s GDP.” [Bloomberg,9/12/11]

 

The Bill Would Employ Construction Workers To Make Overdue Repairs To Schools And Other Infrastructure, And Provide Help To States To Retain Teachers, Police Officers, And Firefighters. In an October 2011 editorial, The Toledo Blade wrote “The plan would employ jobless construction workers to make needed – often dangerously overdue – repairs to schools, roads, bridges, and other public infrastructure. Local governments and school districts afflicted by cuts in state and federal aid would get help to retain teachers, police officers, and firefighters.” [Toledo Blade, editorial, 10/14/11]

 

 

 

Announcer:  “Higher taxes on manufacturers that could cost Ohio Jobs.”

 

On Screen:  Higher Taxes On Ohio Manufacturers Could Cost Ohio Jobs [CQ Vote #396, 12/24/09; CQ Vote #105, 3/25/10; Joint Committee On Taxation Report, 3/20/10]

 

 

The Impact Of The Tax Is Arguable And Portraying It As A Tax On Ohio Manufacturers’ Over Bills The Scope Of It.  In August 2012, PolitiFact wrote “The law does include an excise tax on the sale of medical devices. Its impact is arguable. Dissenters say it could cost jobs and force business overseas.  But portraying it broadly as ‘a new tax on Ohio manufacturers’ over bills the scope of the tax.”  [PolitiFact, 8/30/12]

 

The Tax On Medical Devices Does Not Apply To Items Generally Purchased By The General Public And Applies To Imported Devices As Well As Those Made Domestically.  In August 2012, PolitiFact reported “Crossroads GPS cites that as the ‘new tax on Ohio manufacturers,’ and notes that the Joint Committee on Taxation says it will generate $20 billion in revenue by 2020. The tax does not apply to devices made for export, or to eyeglasses, contact lenses, hearing aids or other medical device ‘generally purchased by the general public at retail for individual use,’ the law states. It applies to imported devices as well as those made domestically.” [PolitiFact,8/30/12]

 

PolitiFact On Previous Crossroads GPS Ad:  Crossroads GPS Claim On Health Care Taxes Cites A Study That “Is Not Credible.”  In August 2012, PolitiFact reported “In responding to our query, Crossroads GPS also pointed to a 2011 study financed by the Advanced Medical Technology Association, or AdvaMed. It said that the excise tax would cause 10 percent of device manufacturing to move offshore, leading to the loss of 43,000 U.S. jobs. An analysis by the research service Bloomberg Government, however, found that the trade group’s study ‘is not credible.’ Bloomberg concluded that its assumptions conflict with economic research, overstate companies’ incentives to move jobs offshore, and ignore the positive effect of new demand created by the healthcare law.” [PolitiFact, 8/30/12]

 

President Of Group That Conducted Study Cited By Bloomberg As “Not Credible” Could Not Cite A Single Example Of An Ohio Company That Had Cut Jobs Because Of Medical Device Tax.  In May 2012, the Columbus Dispatch reported “Stephen Ubl, president and CEO of AdvaMed, the largest trade group representing medical-technology companies, said the tax could ultimately cost the United States tens of thousands of jobs. But he and other industry officials could not cite an example in Ohio of a company that has cut jobs or put growth plans on hold in anticipation of the tax. [Columbus Dispatch, 5/15/12]

 

Between 2010 And 2012 Ohio Gained 80,915 Jobs And 30% Of Economic Growth Occurred In Manufacturing.  In August 2012,The Dayton Daily News reported that January 2010 and January 2012 Ohio gained 80,915 jobs and noted “Some 30 percent of economic growth occurred in manufacturing, according to Mark Schweitzer, research director of the Federal Reserve Bank of Cleveland.”  [Dayton Daily News, 8/18/12]

 

 

Announcer:  “Brown even backs Obama’s new small business tax, burdening Ohio’s small businesses and threatening job creation.”

 

On Screen:  Brown Back’s Obama’s New Small Business Tax

 

On Screen:  Burdening Ohio’s Small Businesses Threatening Job Creation [CQ Vote #183, 7/25/12; CQ Vote #184, 7/25/12; U.S. Treasury Department]

 

 

Vote Cited By Crossroads Was On The Bush Tax Cuts – Which Brown Voted To Extend For All Income Up To $250,000

 

Senator Brown Voted To Extend Tax Cuts For Most Ohioans.  In July 2012, Senator Brown voted for the passage of the bill that would extend the 2001 and 2003 tax cuts for one year on taxable income of up to $200,000 for single filers or up to $250,000 for joint filers.” [CQ; Vote 184, 7/25/12]

 

Associated Press: Tax Plan From Senate Democrats Would Mean Tax Cuts Stay In Place For 98% Of American Households.  In July 2012, the Associated Press reported that the tax plan from Senate Democrats “would continue the expiring tax cuts next year for everyone but individuals making $200,000 a year and couples earning $250,000, who would see their taxes rise. That would mean higher levies next year for 2.5 million households — just 2 percent of the 140.5 million returns the Internal Revenue Service receives, according to 2009 figures.” [Associated Press, 7/24/12]

 

 

Announcer:  “Sherrod Brown – an out of focus vision that costs Ohio jobs.”

 

 

Ohio’s Unemployment Rate Is Lower Than The National Average, The Auto Industry Has Made A Resurgence, And The Recovery Appears To Be Happening Faster In Ohio Than The Rest Of The Country.  In August 2012, The Dayton Daily News wrote “Ohio’s unemployment rate, at 7.2 percent, is lower than the 8.2 percent national unemployment rate. The auto industry, which appeared on the verge of calamity a few years ago, has made a resurgence. Recovery appears to be happening faster in Ohio than it is in the rest of the country.”  [Dayton Daily News, 8/18/12]

 

“Economists Say That The State’s Economy Is Undoubtedly Better Than The Rest Of The Country.”  In August 2012, The Dayton Daily News wrote “Economists say that the state’s economy is undoubtedly better than the rest of the country.”  [Dayton Daily News, 8/18/12]

 

Between 2010 And 2012 Ohio Gained 80,915 Jobs And 30% Of Economic Growth Occurred In Manufacturing.  In August 2012,The Dayton Daily News reported that January 2010 and January 2012 Ohio gained 80,915 jobs and noted “Some 30 percent of economic growth occurred in manufacturing, according to Mark Schweitzer, research director of the Federal Reserve Bank of Cleveland.”  [Dayton Daily News, 8/18/12]

 

“Desperate to distract from reports that Josh Mandel accepted more than $60,000 from employees, PACs and subsidiaries of Murray Energy who were allegedly forced to make campaign donations, Karl Rove has returned to Ohio airwaves with another misleading attack ad as outside attacks against Sherrod surpass $21 million and counting,” said Sadie Weiner, spokeswoman for Friends of Sherrod Brown. “Secretly-funded special interest groups can continue following Josh Mandel’s lead by peddling lie after lie – and we know that they will – but no amount of deceptive attacks on Sherrod will distract from Mandel’s record of absenteeism and cronyism in the Treasurer’s office or change the fact that he’s a politician who simply can’t be trusted.”