Tax Deceptions August 8, 2008 McCain misrepresents Obama's tax proposals again. And again, and again. Factcheck.org McCain has released three new ads, with a number of false and misleading claims about Obama's tax proposals. A TV spot claims Obama once voted for a tax increase "on people making just $42,000 a year." That's true for a single taxpayer, who would have seen a tax increase of $15 for the year – if the measure had been enacted. But the ad shows a woman with two children, and as a single mother, she would not have been affected unless she made more than $62,150. The increase that Obama once supported as part of a Democratic budget bill is not part of his current tax plan anyway. A Spanish-language radio ad claims the measure Obama supported would have raised taxes on "families" making $42,000, which is simply false. Even a single mother with one child would have been able to make $58,650 without being affected. A family of four with income up to $90,000 would not have been affected. The TV ad claims in a graphic that Obama would "raise taxes on middle class." In fact, Obama's plan promises cuts for middle-income taxpayers and would increase rates only for persons with family incomes above $250,000 or with individual incomes above $200,000. The radio ad claims Obama would increase taxes "on the sale of your home." In fact, home-sale profits of up to $500,000 per couple would continue to be exempt from capital gains taxes. Very few sales would see an increase under Obama's proposal to raise the capital gains rate. A second radio ad, in English, says, "Obama has a history of raising taxes" on middle-class Americans. But that's false. It refers to a vote that did not actually result in a tax increase and could not have done so. These ads continue what's become a pattern of misrepresentation by the McCain campaign about his opponent's tax proposals. Some of McCain's previous false claims: McCain falsely claimed Obama's plan would increase taxes on 23 million small-business owners, when the vast majority of them would get a cut. Any increase would actually fall only on the most affluent, a few hundred thousand business owners. McCain falsely claimed Obama "says he'll raise taxes on electricity," though Obama has said no such thing and his tax plan contains no proposal for a tax on electricity. As noted already, McCain falsely claimed Obama once voted for a Democratic budget bill that called for raising taxes on persons making as little as $32,000 a year, when in fact the proposal would not have affected anyone with total income under $41,500 a year, or $83,000 for a married couple with no children. McCain stated that Obama would raise taxes "if you have an investment for your child’s education or own a mutual fund or a stock in a retirement plan." This was found to be "false" by Politifact.com and Factcheck.org. McCain has been twisting Obama tax facts since early June, when he told a small-business gathering that : "Under Senator Obama's tax plan, Americans of every background would see their taxes rise." There may be persons of "every background" among the affluent, but McCain's phrasing was misleading. These ads continue his long-running pattern of deception on taxes.

These are two sets of questions about fair tax policy that voters can ask at public meetings, in writing, or in letters to the editor. The first set is neutral in tone; the second set incorporates a point of view into the question. When asking questions, it’s best to quote a candidate’s own words if possible. 1. Who benefits and who loses under your tax proposal? Do low-income people’s taxes go up or down? Do middle-income people’s taxes go up or down? Do wealthy people’s taxes go up or down? If your proposal gives everybody a tax break, is the percent reduction for wealthy people more or less than that for low and middle income people? Do corporate taxes go up or down? 2. Does your proposal create or eliminate special tax preferences? If it creates them, for whom? If it eliminates them, for whom? 3. Does your tax proposal increase the amount of funds available to sustain the public services needed by the public (e.g., education, transportation, security)? 4. Does your tax proposal increase accountability to taxpayers? Does it create accountability mechanisms for regularly reviewing and assessing special tax preferences? Does it require disclosure of the beneficiaries of federal tax breaks? Does it require company-specific disclosure of corporate profits and federal corporate income taxes paid? The following questions incorporate a point of view so that the audience learns from your questions, not just from the candidate’s answer. 1. Why does Candidate X support giving millionaires like Paris Hilton more tax breaks – such as ending the estate tax or cutting the capital gains tax - when our local school/other federal service is getting cut because there’s not enough funding? 2. If Candidate X wants to cut or end [xyz] tax, which is paid by wealthy people, how does Candidate X propose to make up the lost revenue? Increase the national debt? Raise taxes on the middle class? Spending cuts? If spending cuts, what public services will Candidate X cut? 3. The disparity of wealth between the rich and everybody else is at its highest level since the Gilded Age a century ago. Does reducing/ending a federal tax paid by wealthy people lead to even greater inequality of wealth and power? 4. With national polls showing strong public support for making sure that we put the real needs of working families ahead of tax breaks for the wealthy, does Candidate X want to reduce/end a federal tax paid by wealthy people?