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McCain Tax Jab Overlooks His Own Proposal

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October 16, 2008 10:16 PM

ABC News' Teddy Davis, Rigel Anderson, and Hope Ditto Report:

John McCain is stepping up his assault on Barack Obama's tax plan.

The Arizona senator released a web video Thursday degrading his opponent's refundable tax credits as "welfare" and "government handouts."

Watch it: LINK

A day earlier, it was adviser Douglas Holtz-Eakin who was making the case against Obama.

"The most interesting place now where people have caught onto Barack Obama is in the area of a 'tax cut' for 95 percent of the American people, despite the fact that just under 50 percent literally pay no income tax," said Holtz-Eakin on a conference call with reporters.

"Now how can this be done?" he continued. "Well, Barack Obama has labeled mailing checks to individuals a tax cut."

McCain's top policy adviser then enumerated the following litany of refundable tax credits favored by Obama: (1) a "make-work-pay" credit of up to $500, (2) a universal mortgage credit of 10% of mortgage interest, (3) three different extensions of the Earned Income Tax Credit, (4) a refundable child care credit, (5) a saver's credit, (6) a Hope Credit, and (7) a 100% match of college expenses up to $4,000.

"This array of credits amounts to sending checks to individuals," said Holtz-Eakin, "In 2009, there would be checks sent to 57 million households in the US."

While Holtz-Eakin is correct in suggesting that refundable credits are a cornerstone of Obama's plan, the McCain campaign is overlooking that the center-piece of its own health care plan is . . . you guessed it . . . a refundable tax credit.

In fact, Holtz-Eakin himself has pointed to the refundable nature of McCain's health-care tax credit as the key reason why McCain's health care plan would cover more of the uninsured than proposals offered by President Bush.

While the benefits of a refundable tax credit extend even to those who have no federal income tax liability, they do pay other taxes: payroll, state, local.

"Given that McCain has offered a refundable credit for health insurance, it's hard for him to argue that Obama providing similar credits constitutes welfare," said Roberton Williams, a principal research associate at the non-partisan Tax Policy Center. "You have to have done something to get it. You have to have worked, or paid mortgage interest, or paid college tuition, or put money into a retirement account before you can claim the refundable credit."

"The only way you can reach people at the bottom end of the income distribution through the tax system is through a refundable credit," he added.

October 16, 2008 in McCain, John, Obama, Barack, Vote 2008: Democrats, Vote 2008: Republicans | Permalink | User Comments (29)

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Which candidate is mostly concerned with people making $250,000 or more a year?

JOHN MCCAIN

Which candidate is mostly concerned with the middle class?

BARACK OBAMA!!!

Obama is a good man, a family man. And not having married into money, he has some idea of how hard things are for the middle class right now.

Real wages for middle class families have ACTUALLY GONE DOWN during the last 7.5 years.

We need a break. We need Barack Obama.

Posted by: John McCain's conscience | Oct 16, 2008 10:33:56 PM

Barack Hussein Obama II for president! Time for real Change!

Posted by: Tim | Oct 16, 2008 10:35:06 PM

what a misrepresentation of the facts. Sen. McCain's tax credit means if you buy health insurance, you will be taxed as if your income was lower by what you paid for the insurance. Sen. Obama's plan is if you don't earn enough to write a check to the IRS, the IRS will write you a check.

Posted by: Obamacrat for McCain | Oct 16, 2008 10:38:01 PM

Who thinks health insurance companies should be regulated by a friendly state of their own choosing, simply by reincorporating there?

JOHN MCCAIN

Good luck appealing to the state of Texas when you health insurance company says your cancer is not covered.

Good luck finding another health insurance plan once you get cancer!

Posted by: John McCain's conscience | Oct 16, 2008 10:40:30 PM

Obamacrat,

What you said has no connection whatsoever to reality.

If you get employer supplied health insurance, YOU WILL NOW PAY taxes on the value of this benefit.

If you LOSE your health insurance, you get to negotiate WITHOUT THE BUYING POWER your employer had. You are on your own!

McCain's tax credit is a 'refundable tax credit' EXACTLY in the same sense as Obama's

Posted by: John McCain's conscience | Oct 16, 2008 10:45:14 PM

Mc bush's policies are already done at least for the last 14 years Look at your tax booklets and read it. I am tired of my tax dollars going to Iraq at least with obamas tax and spend (Mcbush theory) the money will go here not over there roads, bridges, education, jobs, energy, environmental protection come on people wake up.and remember Mcbush wants to stay in Iraq until we (WIN)

Posted by: Rose Szymanski | Oct 16, 2008 10:47:19 PM

I agree with Sen. McCain. If you're afraid of insurance companies incorporated in states of lax regulations, just don't buy your health insurance from them. Right now, if your employer buys you health insurance, no one gets taxed, but if he gives you the cash to buy health insurance, you get taxed for it. Why should you be chained to your employer like that? True, the Wal-Marts and Microsofts can negotiate better deals, but we don't all work for Wal-Marts and Microsofts. Employer health care is a thinly veiled mechanism to keep poor working Americans chained to big employers; it prevents them from working for small businesses and it prevents them from starting their own small businesses.

Posted by: Clintonite for McCain | Oct 16, 2008 10:54:54 PM

Clintonite,

When the same change was made to credit cards (in 1978), ALL of the credit card companies reincorportated in Delaware (irony, I know) and South Dakota.

Just like health insurance companies, they can operate from any state, so of course the ALL when to the two states that HAD NO RULES regarding max interest rate, penalties, etc.

So when ALL of the insurance companies move to industry friendly Oklahoma, AND you find out that the rules have changed so that all disputes go to industry sponsored arbitration -- that just happens to rule for the insurance companies 98% of the time -- GOOD LUCK!

Posted by: John McCain's conscience | Oct 16, 2008 11:12:39 PM

Read this news from the New York Times. I know that the pubs will say ya look where it came from the liberal rag.

Quoted from the NYT Oct. 16, 2008.
"House investigative committee presented documents to the Pentagon on Thursday charging that a top Republican fund-raiser, Harry Sargeant III, made tens of millions of dollars in profits over the last four years because his contracting company vastly overcharged for deliveries of fuel to American air bases in Iraq.

In a written statement on Thursday, a lawyer for Mr. Sargeant, who is the finance chairman of the Florida Republican Party and a major fund-raiser for Senator John McCain’s presidential campaign, called the allegations “deeply disappointing” and asserted that they were not supported by the facts."

Under McCain's proposal his tax return will be enormous.

Posted by: democratic | Oct 16, 2008 11:30:42 PM

Simply stated-the ad is full of intentional misstatements of fact. I'm sick of this tactic. There is a commandment regarding "bearing false witness". I thought Republicans were the party of "values".

Posted by: B. Bear | Oct 16, 2008 11:36:40 PM

Does everyone realize there are four choices in this election?

You can vote:

For McCain – McCain is the best candidate in this election and deserves to be elected.
Against Obama – Where this might seem as a vote for McCain; its really not, it is a vote to keep Obama from being elected; no matter who the other candidate is.
For Obama – Obama is the best candidate in this election and deserves to be elected.
Against McCain – again this might seem like for Obama but it really isnt.

Go to my blog and vote: http://nebraskavoice.blogspot.com

Interesting results so far..

Posted by: NebraskaVoice | Oct 16, 2008 11:41:05 PM

Interesting to see interest in Sen. Obama's tax plan. The plan cuts taxes for individuals that don't make $240,000, exempts small businesses, and exempts organizations that create jobs, in the USA. That is a lot of exemptions, wonder who will pay for all those exemptions? I also wonder about the thousands of non-profit companies that exist, they are tax exempt but provide lots of jobs and essential services within our country. Are they out of luck or is that another exempt segment?

Hope we don't run out of rich people to tax before we get all the exemptions covered.

By the way, is one of the tax loopholes that will be closed the one that allows deductions for gifts to charitable organizations? Anyone here know how much the annual contributions to charitable organization is, or from who the vast majority of it comes? Who will provide the services that organizations like the Savaltion Army, Red Cross, food banks, and homeless shelters do if their sources of contributions are significantly reduced or dry up?

I don't care who's tax plan it is or how they package it, the top 5% or the bottom 20% isn't going to pay the necessary taxes to run this country. Its us inbetween those numbers that has always, and will always, pay the taxes. That is just matamatics. Anyone that tells you different is blowing smoke.

Posted by: James Medis | Oct 16, 2008 11:51:14 PM

Joe the Plummer represents the ignorance of the Republican party..

CLEARLY BY FAR Obama's plan is better for him if he were a plummer opening a business.

This guy is a joke who was made famous by a geezer that would look for anything to pull his campaign of this tailspin.

Good luck jerk..... you have two more week of fame.

Posted by: Omentum | Oct 16, 2008 11:59:36 PM

John McCain's conscience:

You do not know that there is no cure for cancer. The insurance companies know that cancer can only be put in remission. In fact, chemotherapy kills more people than cancer. Chemo is toxic substances that destroy the digestive system and the immune system. If you had extensive chemotherapy, you will die from the chemo. A doctor will never claim to cure cancer. If he does say your cancer is cured, report the doctor to the AMA.

Posted by: BlackJack | Oct 17, 2008 4:43:39 AM

I looked at Obama’s national healthcare program and there is a mention of subsidies without the mention of where the subsidies originate. That sound like socialized medicine and socialized medicine is worse than the healthcare we now have. I looked at Canada and use the reference from

http://www.theadvocates.org/freeman/8903lemi.html

and you can have that if you want. I have friends in England that tell me their healthcare is about as bad as Canada. I really do not care what you choose because I have all the coverage I need and it is free. I reference

http://articles.mercola.com/sites/articles/archive/2008/09/23/history-proves-many-doctors-recommendations-are-disasters.aspx?source=nl

for all my medical needs. There is many things you can do to have a happy healthy life.

Posted by: BlackJack | Oct 17, 2008 5:06:54 AM

I see Harry Sargeant III as a shrewd businessman that has capitalized on the needs of the current times. I do not see Harry Sargeant III as a terrorist, or a person wiping his feet on the American flag, or as a man blowing people and buildings into the sky. If you do not like Harry Sargeant III, that is too bad. I do not see any allegations of wrongdoing or any prima facie evidence that he is anti-American or a terrorist.

On the other hand, Barack Obama does not like his full name said or published. There must be a reason, I guess.

Posted by: BlackJack | Oct 17, 2008 5:41:54 AM

Martin Nesbitt, the treasurer of Obama’s campaign, has tax liens. So do his companies.

You’d think that matters more than the tax liens of Joe the Plumber, wouldn’t you? But good luck finding a Big Media story about Nesbitt’s liens.

http://webofdeception.com/obama.html#nesbitt

Posted by: Forget Joe, What about These Tax Liens | Oct 17, 2008 8:00:36 AM

All refundable credits are welfare.

Clinton invented new definitions:

Tax Breaks for Poor = Larger Refundable Credits increasing the NEGATIVE income tax payments received by poor through Additional Child Tax Credit and Earned Income Tax Credit. Do the math if you’re single with two children, and have ZERO income, a simple lie that you have $12k self employment income (doing nothing all day) will get you a sweet government CHECK for THOUSANDS of DOLLARS during tax season. Not a refund of withholding or estimated payments you made, but a CHECK, written with funds confiscated from your hard working neighbor. You will even accrue some social security credit by paying Self Employment Tax with your neighbors cash.

Corporate Welfare = Confiscating less of a business’s profit and capital.

Posted by: marxistseverywyere | Oct 17, 2008 11:19:42 AM

Why I am voting Democrat!

I'm voting Democrat because I believe the government will do a better job of spending MY MONEY than I would. I think when you spread the wealth around it is good for everybody! It’s Patriotic!

I'm voting Democrat because I believe that business should not be allowed to make profits for themselves. All profits are evil and should be confiscated for Government Redistribution.

I'm voting Democrat because I believe that MORE Government regulations and higher taxes on Business will stop Business from exporting their jobs to Countries with LESS Government regulations and lower taxes.

I'm voting Democrat because I believe terrorists should be allowed to have trials in American courts. And be able to subpoena top secret documents, soldiers, government officials, etc. to cross examine for their defense. They should have ACLU lawyers who can help intimidate Americans who serve on the juries!

I'm voting Democrat because I believe in a FREE government health care system. I believe doctors, nurses, hospitals, drug companies, etc. will gladly donate their time, products, services, facilities, etc. for FREE and that will be a better system.

I'm voting Democrat because I believe in and support trial lawyers, frivolous lawsuits and outrageous jury verdicts.

I'm voting Democrat because I believe 9/11 was an inside job to con the American people to go to war for oil.

I'm voting Democrat because I believe social security is solvent and that there is a social security lock box and I don’t believe social security is a Ponzi scheme.

I'm voting Democrat because I believe Gay Marriage should be the law of the land and will probably produce better children.

I'm voting Democrat because I believe English should not be the official language of the United States. I don’t mind pushing one for English when I use the phone.

I'm voting Democrat because I believe partial birth abortion is okay but water boarding a terrorist is disgusting.

I'm voting Democrat because I believe having a domestic terrorist like Bill Ayers as a close friend is a good thing. It allows for great relations with foreign terrorists.

I'm voting Democrat because I believe MOST AMERICANS are bitter and cling to their guns and religion. Let’s rid our country of guns and religion!

I'm voting Democrat because I believe illegal aliens deserve all the rights of ordinary Americans plus some additional rights Americans do not have.

I'm voting Democrat because I believe groups like ACORN who register felons, drug addicts, wino’s, homeless drifters, illegal aliens, dead people, children, fictional Disney characters, etc. makes my vote count more.

I'm voting Democrat because I believe celebrating the winter solstice shows compassion for the small minority of people that do not celebrate Christmas.

I'm voting Democrat because I believe hard core criminal murders and rapists deserve life and that the innocent unborn deserve death. It’s a choice I can live with.

I'm voting Democrat because I believe Bush caused Hurricane Katrina and he blew-up the levies in the ninth ward of New Orleans.

I'm voting Democrat because I believe our soldiers are AIR RAIDING villages and killing innocent people.

I'm voting Democrat because I believe sex in the Oval Office with an intern is a private matter and that everybody lies under oath about sex.

I'm votin Demokrat becuse I wus edumkated at a publick sckrool.

I'm voting Democrat because I believe that any one who is not partaking in one of the many wonderful government programs obviously has too much money and should pay higher taxes.

I'm voting Democrat because when we pull out of Iraq the terrorists will be happy and now think of us as good people.

I'm voting Democrat because freedom of speech is fine as long as it does not offend people. Can’t we all just get along?

I'm voting Democrat because I believe oil companies' profits are wrong. I believe higher taxes on oil companies will produce lower prices at the pump.

I'm voting Democrat because I believe we need to rid ourselves of dependency on foreign oil, BUT I AM AGAINST offshore drilling for oil and natural gas, drilling in Anwar, building nuclear power plants and clean coal technology.

And finally, I'm voting Democrat because I believe Reverend Wright when he said “GODDAMN AMERICA” and “OUR CHICKENS ARE COMING HOME TO ROOST”. Hey let’s make a comfortable nest for those chickens!

Why are you voting Democrat?

Posted by: Average American Mom | Oct 17, 2008 1:47:14 PM

Just send me half of your paycheck and we can bypass the government. Thank you

Posted by: Lizzie | Oct 17, 2008 2:00:41 PM

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