ARLINGTON, VA -- U.S. Senator John McCain's presidential campaign today released its latest television ad, entitled "Painful." The ad highlights Barack Obama's record of voting to raise taxes on middle class families and his proposals for painful tax increases that will only further hurt those already struggling with higher gas prices, higher food prices and the threat of home foreclosure. The last thing we need to do is raise taxes that force families to make even tougher choices with less money in their pockets. The ad will air in key states.
VIEW THE AD HERE: http://www.youtube.com/watch?v=FWXqpHEsrxc
Script For "Painful" (TV :30)
ANNCR: Life in the spotlight must be grand, but for the rest of us times are tough.
Obama voted to raise taxes on people making just $42,000.
He promises more taxes on small business, seniors, your life savings, your family.
Painful taxes, hard choices for your budget. Not ready to lead. That's the real Obama.
JOHN MCCAIN: I'm John McCain and I approved this message.
AD FACTS: Script For "Painful" (TV :30)
ANNCR: Life in the spotlight must be grand, but for the rest of us times are tough. Obama voted to raise taxes on people making just $42,000.
· Barack Obama Voted Twice In Favor Of The Democrats' FY 2009 Budget Resolution. (S. Con. Res. 70, CQ Vote #85: Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48- 45: R 2- 44; D 44- 1; I 2-0, 6/4/08, Obama Voted Yea)
· FactCheck.org: The Budget Resolution Would Have Allowed Most Of The Provisions Of The 2001 And 2003 Tax Cuts To Expire, Effectively Raising Taxes On Those Making $41,500 In Total Income. "What Obama voted for was a budget resolution that would have allowed most of the provisions of the 2001 and 2003 tax cuts to expire. In particular, the resolution would allow the 25 percent tax bracket to return to its pre-2001 level of 28 percent. That bracket kicks in at $32,550 for an individual or $65,100 for a married couple. But as those of you who have filled out a 1040 know, that's not actually how income taxes work. We don't pay taxes on our total earnings; we pay them based on our 'taxable income.' The Urban-Brookings Tax Policy Center's Eric Toder told FactCheck.org that 'people with taxable income of $32,000 would have a total income greater than that.' In 2008, anyone filing taxes with single status would be entitled to a standard deduction of $5,450, as well as a personal exemption of $3,500. So to have a taxable income high enough to reach the 25 percent bracket, an individual would need to earn at least $41,500 in total income, while a married couple would need a combined income of at least $83,000." ("The $32,000 Question," FactCheck.org, http://www.factcheck.org, 7/8/08)
· 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)
· Obama Campaign: Barack Obama Voted For A Budget Resolution That Wouldn't Have Increased Taxes For Any Taxpayers Making Less Than $41,500. ROSEN: "Campaign aides to Senator Obama today, called the charge that he voted for tax hikes on people making only $32,000 a year, quote, 'bogus.' They circulated an analysis stating that the resolution that Obama had voted for would not have increase taxes on single taxpayer making less than $41,500 a year in total income." (Fox News' "America's Election Headquarters," 7/30/08)
· The New York Times: Barack Obama's "Vote Was On A Budget Resolution To Raise Taxes On People Making $41,500 A Year." "FactCheck.org, a nonpartisan Web site, said the vote was on a budget resolution to raise taxes on people making $41,500 a year; the $32,000 figure, it said, was the amount of taxable income those people had." (Michael Cooper, "McCain Goes Negative, Worrying Some In GOP," The New York Times, 7/30/08)
· The Associated Press: Budget Resolution "Would Have Allowed Tax Rates To Return To Pre-2001 Levels, Meaning That An Individual With Taxable Income Of About $32,000 Would Have Faced A Tax Increase." "At issue is Obama's vote on a non-binding budget resolution in March that called for President Bush's tax cuts to expire. Such a step would have allowed tax rates to return to pre-2001 levels, meaning that an individual with taxable income of about $32,000 would have faced a tax increase. Taxable income is what's left after taxpayers account for deductions." (Liz Sidoti, "Obama Dismisses Conservative Criticism," The Associated Press, 7/12/08)
· In June 2008, Obama Said "The Senate Voted To Stand Up For Working Families In Illinois And Throughout The Nation" By Passing The Democrats' Final Budget Resolution. Obama: "Today the Senate voted to stand up for working families in Illinois and throughout the nation by rejecting the failed policies of the Bush Administration and moving our country back on track to fiscal discipline. ... Our country needs change, and this budget is an important step in the right direction. I commend House and Senate leaders for working together to move this legislation through Congress." (Sen. Barack Obama, "Statement Of Senator Barack Obama On The Senate 's Passage Of The FY 2009 Budget Resolution," Press Release, obama.senate.gov, 6/4/08)
· In March 2008, Obama Hailed His Vote For The Budget As Making "Significant Progress In Getting Our Nation's Priorities Back On Track." Obama: "The budget passed by the Senate tonight makes significant progress in getting our nation's priorities back on track. ... We need change in this country, and this budget is an important step in helping bring it about." (Sen. Barack Obama, "Obama Statement On The Senate's Passage Of The FY 2009 Budget," Press Release, obama.senate.gov, 3/14/08)
ANNCR: He promises more taxes on small business, seniors, your life savings, your family. Painful taxes, hard choices for your budget. Not ready to lead. That's the real Obama. JOHN MCCAIN: I'm John McCain and I approved this message.
· Barack Obama 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, www.usnews.com, 2/12/08)
· Barack Obama Would Raise Social Security (Payroll) Taxes On Families. "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)
· Barack Obama 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." "Changes in the individual income tax affect most businesses in the United States. That is because taxes on business earnings are often paid through the individual income tax when 'passed-through' to business owners. The business income from sole proprietorships, farm proprietorships, partnerships, S corporations, etc., is all taxed at the owners' individual income tax rates. This year 34 million business owners are expected to receive this type of income and pay tax on this income through the individual income tax. These businesses are typically small and often entrepreneurial in nature, and a source of innovation and risk-taking in the economy. Moreover, these 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/press/releases/reports/president_taxrelief_topics_0508.pdf, May 2008)
· Barack Obama Would Raise Capital Gains And Dividend Taxes. "Sen. Obama wants to raise the long-term capital-gains rate for families making more than $250,000 to around 20 percent or somewhat higher but not above the 28 percent level it reached during the Reagan presidency, an Obama economic adviser says. The same rate would apply to most dividend income for these investors." (Tom Herman, "Tax Report Your Tax Bill: How McCain, Obama Differ," The Associated Press, 6/18/08)
· In 2006, Over 26.7 Million U.S. Taxpayers Reported Capital Gains Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2006," www.irs.gov, Accessed 7/30/08)
· In 2006, Over 31.5 Million U.S. Taxpayers Reported Dividend Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2006," www.irs.gov, Accessed 7/30/08)
· Barack Obama Called For Tax Hikes On "Dirty Energy" Such As Coal And Natural Gas. Obama: "What we ought to tax is dirty energy, like coal and, to a lesser extent, natural gas." ("Q&A With Sen. Barack Obama," San Antonio Express-News, 2/19/08)
· Even Barack Obama Admits That His Tax Increases May Harm The Economy. CNBC'S JOHN HARWOOD: "And I found this fascinating, Maria, that on the issue of taxes, he looked to insulate himself by saying that if, in fact, economic conditions justify the fact that it might harm the economy, he might be willing to hold off some of his tax increases when he takes office in January. Let's take a listen to Barack Obama." BARACK OBAMA: "Some of those, you could possibly defer. But I think the basic principle of restoring fairness to our economy and encouraging bottom-up economic growth is important. So here's what we know: We know that over the last decade or so, that more than half of the economic growth has been captured by the top one percent of U.S. citizens. That means the other 99 percent have seen their effective incomes go down. That is not a recipe for long- term economic growth." (CNBC, 6/9/08)
· Tax Policy Center: Barack Obama 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)
· Tax Foundation: Seniors "Rely Most On The Stable Flow Of Income That Dividends Provide." "Most debate over whether to extend the reduced rates on dividends and capital gains has focused on the tax benefits of these cuts to high-income taxpayers. What has been largely ignored is the impact these tax policies have on corporations' decisions on how best to distribute their income to shareholders--including senior citizens, who rely most on the stable flow of income that dividends provide. A recent Tax Foundation analysis illustrated that a large number of those benefiting from dividends are seniors and those on the verge of retirement (See www.taxfoundation.org). A further analysis of these seniors earning dividends reveals that lower-income seniors who file tax returns depend more heavily on dividend income than high-income seniors." (Gerald Prante, "The Importance Of Dividend Income For Low-Income Seniors," Tax Foundation, http://www.taxfoundation.org/news/show/1354.html, 2/8/06)