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McCain Tax Jab Overlooks His Own Proposal
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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Another Bogus point from ABC NEWS the
disgrace to legitimate journalism!
The fact that McCain offers one,
that's one refundable tax credit, as
part of his healthcare plan does not equal the Gazillion checks that
Obama and the Dems want to send out!
Obama even proposes to send huge
checks to Georgia and Ukraine in spite of the current economic crisis!
His solution to ant problem be it
education, energy, foreign policy is to
send a check! That is Welfare and
dumb policy!
Where in the world is he going to get
the money to fund all of these
programs? Please don't say Iraq because
that's just a Lie!
Obama proposes to withdraw from Iraq
and provide more resources to
Afganistan! The Iraq money will go
to Afganistan and will not be
available for his domestic programs!
Posted by: reaganfan | Oct 17, 2008 2:54:30 PM
The HILARIOUS thing about this debate over the Earned Income Tax Credit is that the EITC pushed by Obama was first launched by RICHARD NIXON and advanced by RONALD REAGAN.
Obama championed the expansion of the Earned Income Tax Credit as a State Senator.
SB 4 passed UNANIMOUSLY through the Illinois General Assembly, so, this isn't about conservative or liberal. What its REALLY about is a desperate last-minute attempt to play the Race Card by invoking the word "welfare." But if the McCain campaign thinks they're going to win this election by opposing bipartisan tax relief, good luck to them.
Posted by: Yellow Dog Democrat | Oct 17, 2008 5:01:34 PM
Most people aren't going to be diagnosed with the cancer syndrome I have and I'm glad.
But all need to think about the current health care processes degrading if not just plain disintegrating.
Every doctor, hospital, lab or medical facility has patients that have a variety of insurance companies if they are lucky. These plans change their rules year to year. The patients insurance plan can also change year to year as employers seek the lowest cost.
The insurance companies spend 30% of your health care dollar trying to prevent people from collecting benefits for one reason or another. The medical profession and offices spend another 30% trying to get paid.
and you the patient with insurance? don't make the mistake of thinking you're covered in the insurance company fails to pay your bills on a timely basis.
I spent week after week on the phone trying to resolve problems and coordinate my care. I was fortunately extremely strong thru my care but many or not... for them, they give up and pay it out of their own pocket if they can. Or, they don't get the treatment at all.
I'm voting for the candidate who is actually concerned about all American citizens and not just corporate america.
Obama.
Posted by: Cancer Survivor | Oct 17, 2008 6:04:36 PM
Obama is someone I'd like to have a beer with. McCain and Palin are like the annoying relatives you want to avoid.
Posted by: Peter Stone | Oct 17, 2008 11:40:30 PM
Read this to get to know the real John McCain.
http://www.rollingstone.com/news/coverstory/make_believe_maverick_the_real_john_mccain
Posted by: Sarah | Oct 17, 2008 11:55:34 PM
This election has been a disgrace. First and for most, everybody pays income tax. I had to pay income tax when I got out of highschool making less than 10,000 a year, I have to pay now that I am making only 33,000. I am extremely upset about this lie that 30% to 50% of americans don't pay any income tax. What I find truly disappointing is the fact that educated people are believing this lie. Any news agency that is claiming this should be taken off the air because it is simply not true. Yes people lie on their tax returns, that is what audits are for. Let's say 30% percent of americans don't pay income tax. That means to me 30% percent of us don't have a job and the country is in much worse shape than we are being told. We all pay taxes and we all love our country. We need to stop living off credit and start living within our means. Wages need to increase and jobs need to be created. That is the only way out of this mess.
Posted by: Bill | Oct 18, 2008 2:08:58 PM
God help us all if we wake up November 5th and we find ourselves on the planet of the apes. Obama is to the USA today what Hitler was to Germany 100 years ago. History is repeating itself, and the USA is headed towards total collapse.
Posted by: John | Oct 22, 2008 11:39:28 AM
So, Bill, when you got out of high school and paid taxes on your $10,000 income, did you happen to file your taxes that year also? Did your 1040EZ indicate you were going to get back all the taxes you had paid on that $10,000? I suppose you are right, we all DO pay taxes, but some GET IT ALL BACK.
Posted by: Kevin | Oct 22, 2008 1:02:30 PM
Bill you are an idiot. Low income tax filers with children get all their withholding back PLUS extra money they never paid in. The tax regulations are all online, but I suspect you're too lazy to verify.
Here are the relevant IRS publications:
http://www.irs.gov/pub/irs-pdf/p596.pdf
Refundable Earned Income Credit on $11,751 of net earnings from Self Employment = $4,716
http://www.irs.gov/pub/irs-pdf/f1040sse.pdf
Self employment tax on $12,725 = $1,798
$4,716 - $1,798 = $2,918 Check from Treasury during filing season. NOT a REFUND, but a WELFARE CHECK. A negative welfare rate of 23%. These are the people that Obama states need tax breaks, because they’re somehow paying more than their fair share. It would be patriotic for you to give them more money every year. Subsidizing these least able tax filers to raise the next generation of non tax paying welfare recipients.
Posted by: uareamarxistdumbshit | Nov 4, 2008 1:54:35 PM
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