September 21, 2008 04:06 PM UTC

Markey Strikes Back

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• by: Colorado Pols

After a week of shrill bombardment from opponent Marilyn Musgrave, Democratic CD-4 candidate Betsy Markey is done taking unanswered punches–as the Fort Collins Coloradoan reports:

Rep. Marilyn Musgrave is backing legislation to lower taxes on coin and precious metal investments, which she says is consistent with her tax-cutting philosophy. Her opponents say it’s an attempt to enrich her own family.

Musgrave, R-Fort Morgan, is a co-sponsor of The Fair Treatment for Precious Metals Investors Act, which was introduced in June 2007 and has been languishing in committee since. The bill would lower the top tax rate on investments in coins and precious metals from 28 percent to 15 percent by treating them like equity investments rather than collectibles such as paintings and stamps.

“Any time Marilyn has the opportunity to reduce taxes on the American people, she does it,” said Musgrave campaign manager Jason Thielman.

But Democratic challenger Betsy Markey and her supporters said the bill would benefit a small group of taxpayers – including Musgrave and her husband, Steve, who had between $50,001 and $100,000 invested in coins and precious metals in 2007, according to Musgrave’s personal financial disclosure filed earlier this year…

Steve Musgrave had between $15,001 and $50,000 in capital gains off his precious metals investment in 2007, according to the disclosure, meaning the Musgraves’ tax liability would have been reduced between $2,000 and $6,500 under the bill she supported.

“Musgrave is abusing her position in Congress to try to personally enrich herself,” Markey spokes-man Ben Marter said. “She is one of only nine representatives to co-sponsor this bill that would materially benefit her at the expense of taxpayers. At a time when our economy is in turmoil and families are struggling to make ends meet, she needs to explain why she is trying to help herself at a cost of $52 million to American taxpayers.”

Ed Yoon, campaign manager for Defenders of Wildlife Action Fund, which has spent $520,000 on anti-Musgrave efforts this election, accused the three-term incumbent of hypocrisy. He said Musgrave has been baselessly accusing Markey of trying to enrich herself while serving as a Senate staffer while Musgrave has been pushing legislation that would benefit her own family…

Our view: this is a better counterattack than 2006 contender Angie Paccione ever managed, and we predicted the moment we saw Musgrave going negative that Markey’s return fire would do more damage than Musgrave’s opening volley. Which is why we said it was a mistake for Musgrave to go bare-knuckle negative to begin with–even though she has never failed to do so when threatened, and it did help her in the end against Angie Paccione.

The problem, as Musgrave’s campaign will slowly–too slowly, we predict–come to understand over the next few weeks, is that Betsy Markey is a hell of a lot better at this than Angie Paccione.