Pat Dollard

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DEBATE FACT #2: BARACK OBAMA HAS A STRONG TAX INCREASE AGENDA

Summary:.

Barack Obama has a strong tax increase agenda that will impact small businesses.

The Facts About The Obama-Biden Agenda And Barack Obama’s Record

Obama-Biden Has Called For Higher Income Taxes, Social Security Taxes, Capital Gains And Dividend Taxes, And Corporate Taxes, As Well As “Massive New Domestic Spending.” “Obama’s transformation, if you go by his campaign so far, would mean higher income taxes, higher Social Security taxes, higher investment taxes, higher corporate taxes, massive new domestic spending, and a healthcare plan that perhaps could be the next step to a full-scale, single-payer system. Is that what most Americans want, someone who will fulfill a Democratic policy wish list?” (James Pethokoukis, “Barack Hussein Reagan? Ronald Wilson Obama?” U.S. News & World Report’s “Capital Commerce” Blog, 2/12/08)

Obama-Biden Will Increase Capital Gains And Dividend Taxes. Obama Economic Advisors Jason Furman and Austan Goolsbee: “The top capital- gains rate for families making more than $250,000 would return to 20% … The tax rate on dividends would also be 20% for families making more than $250,000, rather than returning to the ordinary income rate.” (Jason Furman and Austan Goolsbee, Op-Ed, “The Obama Tax Plan,” The Wall Street Journal, 8/14/08)

· Tax Policy Center: Obama-Biden Would Raise Taxes On One Out Of Every Three Senior Households. “Even though Senator Obama’s plan eliminates individual income taxes for seniors with incomes less than $50,000, his plan would raise taxes for almost 10 million senior households, over a third of the total (not shown in table). On average, seniors would face a tax increase of about 2 percent of income.” (Burman et al., “A Preliminary Analysis of the 2008 Presidential Candidates’ Tax Plans,” The Tax Policy Center, 6/11/08)

Obama-Biden Would Raise Income Taxes. Obama: “[I] would roll back the Bush tax cuts for those making over $250,000.” (Sen. Barack Obama, CNN Democrat Presidential Candidate Debate, Manchester, NH, 6/3/07)

· U.S. Department Of Treasury: Small Business Owners “Are Frequently Subject To The Highest Individual Income Tax Rates.” (“Topics Related To The President’s Tax Relief,” U.S. Department Of Treasury, http://www.ustreas.gov, May 2008)

Obama-Biden Would Raise Social Security Taxes. “Obama’s proposal … would impose social security taxes on income above $250,000 per year. He would continue to exempt income between $102,000 and $250,000 from social security taxes.” (Teddy Davis, Sunlen Miller, and Gregory Wallace, “Obama Kisses Billions Goodbye,” ABC News’ “Political Radar” Blog, blogs.abcnews.com, 6/18/08)

Obama-Biden Called For A Tax On Coal And Natural Gas. Obama: “What we ought to tax is dirty energy, like coal and,20to a lesser extent, natural gas.” (“Q&A With Sen. Barack Obama,” San Antonio Express-News, 2/19/08)

Obama-Biden Called For A Tax On Oil. Obama: “I think it is appropriate for us to impose a windfall profits tax on our oil companies.” (Sen. Barack Obama, Remarks At A Campaign Event, Charlotte, NC, 5/2/08)

· The Washington Post: Barack Obama’s Tax On Oil Companies Will Only Lead To “Higher Prices At The Pump.” (Editorial, “Tapping Tired Wells,” The Washington Post, 8/6/08)

FactCheck.org: “Obama’s Votes Indicate A Willingness To Raise Taxes.” “Certainly Obama’s votes indicate a willingness to raise taxes, and Obama has not been shy about saying explicitly that he will raise some taxes.” (“The $32,000 Question,” FactCheck.org, http://www.factcheck.org, 7/8/08)

DEBATE FACT #3: BARACK OBAMA IS “MISLEADING” ON TAX CUTS FOR OIL COMPANIES

Summary:.

Barack Obama is wrong when he says John McCain supports tax cuts for oil companies.

The Facts About Barack Obama’s Record:

Barack Obama’s Claim Is “Misleading” According To Non-Partisan Fact-Check Organizations

· FactCheck.org: Barack Obama Claim Is “Misleading” Because “McCain Is Not Proposing Any Special Tax Breaks For The Oil Industry.” “The ad’s claim that ‘McCain wants to give [oil companies] another $4 billion in tax breaks’ is also somewhat misleading. McCain is not proposing any special tax breaks for the oil industry. What he’s proposing is a reduction in the corporate income tax rate for all companies.” (Brooks Jackson And Emi Kolawole, “Obama’s Overstatement,” FactCheck.org, http://www.factcheck.org/elections-2008/obamas_overstatement.html, 8/4/08)

· PolitiFact: Obama’s Statement “Barely True,” As Obama Is “Cherry-Picking” On Tax Cut, As “The Corporate Tax Rate Reduction Would Apply To ALL Corporations.” “Obama is cherry-picking here. Th e corporate tax rate reduction would apply to ALL corporations. Yes, Exxon Mobil, but also to Wal-Mart, General Motors and Home Depot, to name a few of the other Fortune 50 biggies. Even everybody’s favorite, Starbucks, would get the same tax break. Obama’s statement is technically true, but singling out oil companies suggests McCain has targeted oil companies for tax breaks. He hasn’t. We rate Obama’s statement, and the claim in the ad, Barely True.” (“Big Oil, Like All Companies, Would Get Tax Break,” PolitiFact.com, Accessed 8/4/08)

Barack Obama Said That He Too Supports Cutting Taxes For Corporations

· In A Wall Street Journal Interview, Barack Obama Said That He Was Considering Lowering Corporate Taxes. “Sen. Obama’s nod to lowering corporate taxes comes as Republican s have been attacking him for proposals that would raise the cost of doing business, such as his pledge to raise the tax rate on capital gains, and his vow to increase the top income-tax rates, which are often used by small, unincorporated enterprises. He didn’t say how deeply he would cut the rate, but said it could be trimmed in return for reducing corporate tax breaks, simplifying the tax system.” (Bob Davis and Amy Chozick, “Obama Plans Spending Boost, Possible Cut In Business Tax,” The Wall Street Journal, 6/17/08)

· Obama Economic Policy Director Jason Furman: “[Barack Obama] Would Like To Cut The Corporate Tax Rate, And It’s A Question That We’re Studying.” (Brian Wingfield, “Obama’s Taxing Policies,” Forbes.com, 7/31/08)

Barack Obama Voted For The 2005 Energy Bill Containing Billions In Tax Breaks For Big Oil

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· Barack Obama Voted For The 2005 Energy Bill. (H.R. 6, CQ Vote #152: Motion Agreed To 92-4: R 53-1; D 38-3; I 1-0, 6/23/05, Obama Voted Yea; H.R. 6, CQ Vote #158: Passed 85-12: R 49-5; D 35-7; I 1-0, 6/28/05, Obama Voted Yea; H.R. 6, CQ Vote #213: Adopted 74-26: R 49-6; D 25-19; I 0-1, 7/29/05, Obama Voted Yea)

· The 2005 Energy Bill Included $2.8 Billion In Subsidies For Oil And Natural Gas Production. “The conference agreement provides for $14.6 billion in tax breaks and credits between 2005 and 2015, including: — $2.8 billion for fossil fuel production…” (Toni Johnson, “CQ Bill Analysis: HR 6,” Congressional Quarterly’s “CQ Bill Analysis,” www.cq.com, Accessed 7/14/08)

· Senator Hillary Clinton (D-NY): “When It Came Time To Stand Up Against The Oil Companies, To Stand Against Dick Cheney’s Energy Bill, My Opponent Voted For It And I Voted Against It.” (Aaron Burns, “Clinton Questions Obama’s Oil Company Claims,” Fox News’ “Embeds” Blog, 4/25/08)

DEBATE FACT #4: WHAT IS 95%?

Summary:.

Barack Obama is talking about 95% but it is misleading.

The Facts About Barack Obama’s Record:

The Wall Street Journal’s Kimberly Strassel: Barack Obama Says He Will Cut Taxes For 95% Of Americans Even Though 40% Don’t Pay Taxes. “To kick off our show tonight, Mr. Obama will give 95% of American working families a tax cut, even though 40% of Americans today don’t pay income taxes! How can our star enact such mathemagic? How can he ‘cut’ zero? Abracadabra! It’s called a ‘refundable tax credit.’ It involves the federal government taking money from those who do pay taxes, and writing checks to those who don’t. Yes, yes, in the real world this is known as ‘welfare,’ but please try not to ruin the show.” (Kimberly Strassel, Op-Ed, “Obama’s Magic,” The Wall Street Journal, 10/10/08)

Tax Policy Center: Over 10 Years, Barack Obama Will Devote $1.05 Trillion To Households Paying No Income Tax – An Additional $647.51 Than Under Current Law. (Table T08-0191, “Senator Barack Obama’s Non-Health Tax Proposals As Described By His Economic Advisors: Impact On Outlays And Tax Units With No Individual Income Tax Liability, 2009-18,” Tax Policy Center, 7/25/08)

· Tax Policy Center: Under Obama’s Plan, He Would Direct $100.6 Billion In 2009 To Households Who Pay No Income Tax. (Table T08-0191, “Senator Barack Obama’s Non-Health Tax Proposals As Described By His Economic Advisors: Impact On Outlays And Tax Units With No Indivi dual Income Tax Liability, 2009-18,” Tax Policy Center, 7/25/08)

According To The Tax Foundation, Under The Obama Tax Plan 63 Million Americans “Would Have No Income Tax Liability And Most Of Those Would Get A Check From The IRS Each Year.” “The Tax Foundation estimates that under the Obama plan 63 million Americans, or 44% of all tax filers, would have no income tax liability and most of those would get a check from the IRS each year.” (Editorial, “Obama’s 95% Illusion,” The Wall Street Journal, 10/13/08)

The Wall Street Journal: Barack Obama’s Tax Plan Has “Several Sleights Of Hand.” “It’s a clever pitch, because it lets him pose as a middle-class tax cutter while disguising that he’s also proposing one of the largest tax increases ever on the other 5%. But how does he conjure this miracle, especially since more than a third of all Americans already pay no income taxes at all? There are several sleights of hand, but the most creative is to redefine the meaning of ‘tax cut.’” (Editorial, “Obama’s 95% Illusion,” The Wall Street Journal, 10/13/08)

· New York Post: “[O]bama’s ‘Tax Cuts’ Really Amount To A Sizable Expansion Of Welfare.” “In other words, Obama’s ‘tax cuts’ really amount to a sizable expansion of welfare. That leaves American taxpayers to foot the bill – both directly, and through the lost economic opportunity that’s sure to follow Obama’s promised tax hikes on income, dividends and capital gains.” (Editorial, “Ready, Set … Spend!” New York Post, 10/14/08)

· The Washington Times’ Donald Lambro: Some Say Barack Obama’s Tax Plan Looks “Suspiciously Like Welfare.” “Barack Obama says he will give 95 percent of all American workers a tax cut but does not mention that his plan would send checks to tens of millions of tax filers who pay no personal income taxes – payments that critics say look ‘suspiciously like welfare.’” (Donald Lambro, “Obama Tax Cut ‘Refunds’ Those Who Don’t Pay,” The Washington Times, 10/13/08)

· Americans For Tax Reform: “‘Refundable Tax Credits’ Means That If You Zero Out Your Income Tax Liability, The Government Gives You A Welfare Check. This Isn’t An Income Tax Cut—It’s Spending.” “Most of the ‘tax cuts’ Obama claims credit for is in fact spending. ‘Refundable tax credits’ means that if you zero out your income tax liability, the government gives you a welfare check. This isn’t an income tax cut—it’s spending. According to the Tax Foundation, one-third of households don’t have an income tax liability.” (Americans For Tax Reform, “Americans For Tax Reform Calls Obama ‘Tax Calculator’ Inaccurate And Misleading,” Press Release, 10/14/08)

DEBATE FACT #5 WHO IS JOE THE PLUMBER?

“That’s the American Dream to me. You work hard. You’re going to get what you want eventually. It’s not going to happen overnight by no means, but if you work hard enough you will get it. I resent the government or Obama’s plan to take more away from me.” – Joe Wurzelbacher, AKA “Joe The Plumber”

FOX News’ “Your World”
October 14, 2008

Neil Cavuto: “Well, you know, you’re the type of guy who these tax increases of his could affect, or with a cutoff that his could affect, and you don’t fit this gazillionaire model. In other words, you’re not the Henry Kravis types, but you’re in that group that would see your tax es hiked. What do you think of that?”

Joe Wurzelbacher: “Well, it’s, you know – I don’t know how much of the video is shown, but I’m living in a simple middle-class home. Most of the homes go from anywhere from $90,000 at the lowest to maybe $140,000 at the highest. You know, just working, and when I do purchase the rest of this company and move forward, I will be living there still, because, one, I don’t want to keep up with the Joneses, and two, I just couldn’t really afford a bigger house. I’m going to have to work harder to make that company go. I want to put more trucks on the road and his tax increases kind of hurts that aspect.”

Cavuto: “Some people interpreted his remark as sort of like Robin Hood-ish, Joe, that it was a redistribution of wealth. Taking from guys like you to help people who are not as well off as you. What do you think of that?”

Wurzelbacher: “Robin Hood stole from greedy rich people and redistributed it to the peasants, so to speak, so if he’s calling us peasants, I kind of resent that. I’m the same class of people that went from paycheck to paycheck living to finally being able to save some money, and it’s just – you work and hard work. That’s the American Dream to me. You work hard. You’re going to get what you want eventually. It’s not going to happen overnight by no means, but if you work hard enough you will get it. I resent the government or Obama’s plan to take more away from me.”