(Photo: Getty)

Earlier this morning, Speaker John Boehner and the U.S. House Republican leadership held a press conference to announce a new proposal to raise taxes on the wealthy and avoid the so-called "fiscal cliff," or the steep set of spending cuts and tax increases that will arrive by the end of the year if a deficit deal is not reached. Specifically, Mr. Boehner's plan would extend the current tax rates on everyone making less than $1 million a year, a sharp jump from President Barack Obama's own counteroffer yesterday, which conceded a $400,000 ceiling. Mr. Obama had previously stood firm on allowing the tax cuts to expire for everyone making more than $250,000, a number that GOP lawmakers apparently found unacceptable.

"Our hope continues to be to reach an agreement with the president on a balanced approach that averts the fiscal cliff. What we've offered meets the definition of balance, but the President is not there yet," Mr. Boehner began. "What the White House offered yesterday was essentially $1.3 million in new revenues, for only $850 billion in net spending reductions. That's not balanced in my opinion. So, at the same time that we're going to talk to the President, we're going to also move 'plan B.'"

While not sounding especially happy about backing off of his vow to block any tax increases, Mr. Boehner said the need to protect a majority of Americans forced his hand.

"I think we all know that every income tax filing in America is going to pay higher rates come January 1st unless Congress acts," he said. "So I believe it's important that we protect as many American taxpayers  as we can. Our 'plan B' would protect American taxpayers who make $1 million or less and have all of their current rates extended. I continue to have hope that we can reach a broader agreement with the White House that would reduce spending as well as have revenues on the table. I think it'd be better for our country. But, at this point, having a 'backup plan' to make sure that as few American taxpayers are affected by this increase as possible, moving down that path is the right course action for us."

Grover Norquist (Photo: Getty)

As they face down the fiscal cliff, a growing number of Republicans are abandoning the pledge not to increase taxes that they made to anti-tax crusader Grover Norquist. Today, Hudson Valley Rep. Chris Gibson came up with what might be the most creative excuse yet for breaking the pledge. Mr. Gibson saw his district number change from 20 to 19 during this year's redistricting process and he reasoned that the pledge no longer applies to him as it was only to the constituents under the previous district number.

"The Congressman signed the pledge as a candidate in 2010 for the 20th Congressional District," his spokeswoman explained. "Regarding the pledge moving forward, Congressman Gibson doesn’t plan to re-sign it for the 19th Congressional District, which he now represents (the pledge is to your constituents of a numbered district)."

Indeed, the pledge itself is addressed "to the taxpayers of the _____ district," with the candidates filling in the blank. However, the next line of the pledge says "and to the American people," which calls Mr. Gibson's logic into question.

Nevertheless, Mr. Gibson apparently feels the change in his district number is a sufficient excuse for him to "consider all comprehensive packages brought forward as a result of bipartisan negotiations" in the latest high-profile budget negotiations currently controlling the conversation in Washington. He joins a slew of Republicans who have dropped the pledge, including Long Island Rep. Peter King who entered a heated war of words with Mr. Norquist over the issue. Prior to the recent raft of pledge-breakers, all but six of the current Republican members of the House of Representatives had signed the pledge.

Correction: One of the references to Mr. Gibson's district number switches was initially reversed.

Mayor Bloomberg at his press conference.

In order to keep the city's fiscal house in order in the aftermath of Hurricane Sandy, Mayor Michael Bloomberg unveiled new cuts and streams of revenue over the weekend. Among the changes, school-lunch fees will increase from $1.50 to $2.50, while city libraries will see their funding axed to the tune of $8.3 million. Asked about it during a press conference today in the hard-hit Howard Beach neighborhood in Queens, Mr. Bloomberg defended the budgetary measures.

"It's easy to say, 'I don't like A, B and C,'"  he argued. "Well, what things would they like us to raise taxes [on]? The issue here is that we're trying to find some balance so that everybody shares a little bit in the pain, everybody contributes; we're all in this together. And do it such that people can afford [it]. It's not asking a lot to go, in this day in age, from one price to another if it's a relatively small price. But if a large number of people do it, it contributes significant revenues."

Mr. Bloomberg emphasized that, for reasons outside of his control, his hand was forced. The mayor specifically called out the Public Advocate Bill de Blasio-backed lawsuit against the State Legislature's livery cab bill, which ended up blocking the planned sale of additional taxi medallions.

"We have a budget that is going to be strained by the recovery," he explained. "We have a budget that is questionable because of some people suing us for their own selfish reasons to stop the taxi medallions. We have great uncertainties out there and we will balance our budget like we've done every single year."

Mitt Romney (Photo: Getty)

The world will get a look at Mitt Romney's 2011 tax return this afternoon at 3 p.m. Eastern. Mr. Romney's taxes have been the subject of relentless attacks by the Obama campaign, which has called for the Republican candidate to release at least five years of his returns. Mr. Romney previously provided his 2010 return and information based on estimates for his 2011 return, which had to be finished by the extended October 15 deadline.

Mr. Romney is clearly not succumbing to the pressure to release more returns, along with his 2011 taxes, but the campaign said they will also release a letter with a summary of Mr. Romney's tax rates from 1990-2009 this afternoon. Though the big reveal is still about an hour away, the Romney campaign teased some details about what will be contained in today's document drop including how much Mr. Romney made last year and what his average rate has been since 1990. 

Last year, the Romneys made $13,696,951 in "mostly investment income." They paid $1,935,708 in taxes for 2011, for an effective tax rate of 14.1 percent. In 2011, the Romneys gave $4,020,772 to charity, which was just under 30 percent of their total income.

From 1990 until 2009, the Romneys paid an average annual effective tax rate of 20.20 percent. The lowest tax rate they paid during this period was 13.66 percent.

The Romney campaign has created a special website where the tax return will be posted and a special email address, returns@mittromney.com, for anyone who has questions about the tax return. In addition to the tax information, the campaign will be releasing "physician letters" for both Mr. Romney and his running mate, Paul Ryan. This means the public will finally be able to see just how well Mr. Ryan's P90X routines have been working for him.

Update (3:23 p.m.): The Romney campaign's website was down for several minutes, presumably due to high traffic, but the return and other information is now available online. In addition to Mr. Romney's 2011 tax return, the campaign also posted Paul and Janna Ryan's 2011 return. The Ryans had $262,294 in adjusted gross income for 2011 and gave just under five percent to charity.

Charlie Rangel (Photo: NY1)

Congressman Charles Rangel is the latest Democrat to pile on Mitt Romney after Mother Jones released a blockbuster secret video of one of the Republican candidate's fundraisers in which he characterized President Barack Obama's supporters as the "forty seven percent of Americans" who "pay no income tax," suggested he'd have an easier chance of winning the White House if he was Mexican and called peace between Israelis and Palestinians "almost unthinkable," among other controversial remarks.

Mr. Rangel issued a statement slamming Mr. Romney's comments this afternoon describing them as "ridiculous," far from the truth and amoral considering Mr. Romney's own income tax situation.  

"Nothing can be further from the truth than Gov. Romney's ridiculous remarks that nearly half of American people do not pay federal income taxes, they pay other federal and state taxes," Mr. Rangel said. "The 47 percent figure cited by the Republican presidential candidate covers only the federal income tax and ignores the fact that people may pay a higher percentage of their income on a wide variety of taxes."

According to Mr. Rangel, "everyone pays taxes."

"Everyone pays taxes. Lower income persons pay state and local, property, excise and sales taxes. In fact, when all federal, state, and local taxes are taken into account, the bottom fifth of households pays about 16 percent of their incomes in taxes, on average. The second-poorest fifth pays about 21 percent," he said.

Mr. Rangel also pointed out these rates are "higher than what the Governor has paid in income taxes." Indeed, according to the tax returns the his campaign has released, Mr. Romney’s average tax rate for the past two years was about 14.65 percent.

"He has absolutely no moral authority to accuse nearly half of the American people of being irresponsible and freeloaders," said Mr. Rangel.

The Congressman finished his statement by claiming many of Mr. Romney's wealthy "friends" also pay lower rates than poorer Americans.

"Many of his millionaire and billionaire friends--approximately 55,000--are paying lower taxes than millions of middle-class Americans. In fact, in 2009, 1,500 millionaires managed to pay no federal income taxes on their millions. Before he judges other people about paying federal income taxes, Gov. Romney should come clean about the tax returns he's hiding from voters."

Mitt Romney (Photo: Getty)

In a letter sent to Mitt Romney's campaign manager, Matt Rhoades, this morning his counterpart on the Obama campaign, Jim Messina promised to let up on their criticism of Mr. Romney for not releasing more of his tax returns if he releases five years worth of returns. Mr. Messina said this offer should address any "fears" on Mr. Romney's part that "that the more he offers, the more our campaign will demand that he provide."

"If the Governor will release five years of returns, I commit in turn that we will not criticize him for not releasing more--neither in ads nor in other public communications or commentary for the rest of the campaign," Mr. Messina wrote. "This request for the release of five years, covering the complete returns for 2007-2012, is surely not unreasonable. Other Presidential candidates have released more, including the Governor's father who provided 12 years of returns."

Mr. Rhoades responded with an e-mail telling Mr. Messina, "If Governor Romney’s tax returns are the core message of your campaign, there will be ample time for President Obama to discuss them over the next 81 days."

For Mr. Romney, releasing five years of tax returns would involve making three years of returns public in addition to the 2010 return he has already released and the 2011 return he has pledged to disclose. The Obama campaign has repeatedly suggested Mr. Romney's reluctance to release more of his returns indicates he may have something to hide.

Mr. Rhoades' response to Mr. Messina indicates the Romney campaign will not take him up on his offer. Rather than discussing his taxes, Mr. Rhoades said Mr. Romney will be spending the time between now and the election, "continu[ing] to lay out his plans for a stronger middle class, to save Medicare, to put work back into welfare, and help the 23 million Americans struggling to find work in the Obama economy."

Read Mr. Messina's full letter and Mr. Rhoades' response below.

August 17, 2012

Matt Rhoades
585 Commercial Street
Boston, Massachusetts 02109

Dear Matt:

I am writing to ask again that the Governor release multiple years of tax returns, but also to make an offer that should address his concerns about the additional disclosures. Governor Romney apparently fears that the more he offers, the more our campaign will demand that he provide. So I am prepared to provide assurances on just that point: if the Governor will release five years of returns, I commit in turn that we will not criticize him for not releasing more--neither in ads nor in other public communications or commentary for the rest of the campaign.

This request for the release of five years, covering the complete returns for 2007-2012, is surely not unreasonable. Other Presidential candidates have released more, including the Governor's father who provided 12 years of returns. In the Governor's case, a five year release would appropriately span all the years that he has been a candidate for President. It would also help answer outstanding questions raised by the one return he has released to date, such as the range in the effective rates paid, the foreign accounts maintained, the foreign investments made, and the types of tax shelters used.

To provide these five years, the Governor would have to release only three more sets of returns in addition to the 2010 return he has released and the 2011 return he has pledged to provide. And, I repeat, the Governor and his campaign can expect in return that we will refrain from questioning whether he has released enough or pressing for more.

I look forward to your reply.

Jim Messina
Obama for America Campaign Manager

Hey Jim,

Thanks for the note.

It is clear that President Obama wants nothing more than to talk about Governor Romney’s tax returns instead of the issues that matter to voters, like putting Americans back to work, fixing the economy and reining in spending.

If Governor Romney’s tax returns are the core message of your campaign, there will be ample time for President Obama to discuss them over the next 81 days.

In the meantime, Governor Romney will continue to lay out his plans for a stronger middle class, to save Medicare, to put work back into welfare, and help the 23 million Americans struggling to find work in the Obama economy.

See you in Denver.

Thanks,

Matt Rhoades

Romney for President

Campaign Manager

All of the GOP county chairs showed up for George McDonald's mayoral discussion meeting, compared to the two that showed up for Malcolm Smith's.

New York Democrats in tough races are skipping the convention with various excuses, which the GOP doesn't buy.

Governor Cuomo touted Ben Lawsky's $340 million settlement in a New York Post op-ed, and Albany's already debating how to spend it.

Amid criticism, Mayor Bloomberg is replacing NYCHA board members.

The board chairman, John Rhea, sat down with the Daily News editorial board to discuss its problems, including that it has a backlog of 338,000 repair orders.

While the Post's editorial board criticized Bill Bratton for chatting with likely mayoral contenders. He should just run for Gracie Mansion in 2013 they argued.

David Storobin slammed President Obama on Israeli television.

Ted O'Brien, vying to replace Jim Alesi in theSenate, made his pitch on Capital Tonight.

More on Rhoda Jacobs' tough reelection battle.

GOP Senate candidate Eric Ulrich is a fan of Democratic Council candidate Dara Adams.

After Rubén Díaz, Sr.'s complaints, some Brooklyn candidates paid him a visit as well.

The state's new voter registration system might hurt Republicans, although plenty of Republicans seem to like it.

New York's lobbying restrictions blocks some positive help state workers would otherwise provide.

Ashley Dupre, Eliot Spitzer's infamous prostitute, is now engaged.

Mitt Romney claims to have spent at least 13% in taxes, while Harry Reid remained skeptical.

Romney's transition team has been planning his presidency behind the scenes.

Team Romney claims Paul Ryan has been a huge draw of traffic, dollars and followers online.

Romney and Ryan are going to be campaigning together a lot.

Nate Silver still thinks Romney's chances are a relatively low 31.3%.

The RNC is touting its $37.7 million July haul.

President Obama (Photo: Getty)

At an event in South Carolina today, Mitt Romney rebuffed the repeated questions the Obama campaign has raised about him not revealing more than two years of his tax returns by claiming he's paid at least a 13 percent tax rate for the past decade.

“I did go back and look at my taxes, and over the past 10 years I never paid less than 13 percent. I think the most recent year is 13.6 or something like that. So I paid taxes every single year,” Mr. Romney said.

Obama campaign national press secretary Ben LaBolt was asked how the campaign would respond to Mr. Romney's claim on a press conference call with reporters this afternoon. Mr. LaBolt's answer was simple. He said Romney should "prove it" by releasing more of his returns. 

"The key is the ability to prove his claim; look, this is a candidate who has defied bipartisan precedent—his own father put out 12 years of returns," Mr. LaBolt said. "Governor Romney has only put out two years of returns, and the fact is, the American people deserve the opportunity to look through those documents and make their own conclusions."

Mr. LaBolt said making his tax returns public would be the only way for Mr. Romney to answer several questions, including "discrepancies" in his financial disclosure statements, why he transferred ownership of a Bermuda-based corporation to his wife before he was inaugurated as governor of Massachusetts, whether he avoided taxes by keeping assets offshore and why he opened a Swiss bank account.

"He has the ability to answer all these questions by releasing several years of his tax returns, and he simply hasn't done that," said Mr. LaBolt. "So we would say, 'Prove it, Governor Romney."

Questions about Mr. Romney's taxes have also come from Senate Majority Leader Harry Reid, who has claimed to have knowledgeable, unnamed sources who informed him Mr. Romney may not have paid any taxes at all during some years. His spokesman, Adam Jentleson, didn't back down from this accusation after Mr. Romney's statement today.

"We'll believe it when we see it. Until Mitt Romney releases his tax returns, Americans will continue to wonder what he's hiding," Mr. Jentleson said.

A scene from the Obama campaign's new ad. (Photo: YouTube)

The Obama campaign continued their attack on Mitt Romney's offshore assets and refusal to release more of his tax returns with a new ad this morning entitled "Makes You Wonder." In the ad, a narrator points to the Vanity Fair investigation of Mr. Romney's finances and suggests his use of "tax havens,” "offshore accounts" and "carried interest" and his low overall tax rate indicate he may not have "paid any taxes at all" outside of the one year for which he did release returns, 2010.

"Mitt Romney has used every trick in the book. Romney admits that over the last two years he’s paid less than 15% in taxes on $43 million in income. Makes you wonder if some years he paid any taxes at all," the narrator says as text flashes across the screen showing the years 2005 through 2009 followed by question marks.

As a news clip of Mr. Romney saying he won't release more information than his 2010 return and his estimated liability for last year plays, the narrator suggests the mystery of Mr. Romney's monies can't be solved unless he discloses his returns.

"We don’t know because Romney has released just one full year of his tax returns and won’t release anything before 2010," the narrator says. "What is Mitt Romney hiding?"

The Romney campaign released an attack of their own this morning, a statement blaming the layoffs that occurred after the energy company Solyndra went bankrupt on "political payoffs" from the Obama administration. The statement included a fact sheet showing ties between Solyndra, which received a $535 million federal loan guarantee from the Department of Energy prior to going under, and Obama campaign donors.

“Life in the Obama economy is difficult for millions of struggling middle-class Americans–-but President Obama didn’t make it any easier for more than a thousand workers at Solyndra. While the President’s political allies reaped the benefits of half a billion dollars in taxpayer funds, American workers lost everything. Middle-class families deserve better from their president,” Romney campaign spokeswoman Andrea Saul said in the Solyndra statement.

Neither of these attacks are entirely new. The Obama campaign has spent weeks hitting Mr. Romney on his finances and Team Romney has done a prior Solyndra blitz. For now, these two campaigns seem intent on relentlessly digging into each other's personal histories rather than engaging in policy discussion. Perhaps that will change as the election approaches and the candidates meet for the presidential debates.

Watch the Obama campaign's new ad below.

Joe Biden (Photo: Getty)

Vice President Joe Biden is scheduled to be the keynote speaker at the National Council of La Raza in Las Vegas later today and he plans to attack Mitt Romney for not revealing more of his tax returns. Advance excerpts of Mr. Biden's speech sent out by the Obama campaign include a line mocking Mr. Romney for his support of Arizona's immigration law in light of his refusal to disclose 12 years of returns, a tradition for presidential candidates that was started by his father, George Romney.

“When his father, George Romney, was a candidate was for President in 1968, he released 12 years of tax returns because, as he said, ‘One year could be a fluke, perhaps done for show.’ ... His son has released one year of his tax returns," the speech says. "Making a lie of the old adage: Like father, like son....Mitt Romney wants you to show your papers, but he won’t show us his."

Mr. Romney has released his 2010 return and an estimate for his liability in 2011. His failure to release more information about his finances and his mysterious collection of offshore assets has become a favored target of attacks from the Obama campaign in recent weeks.