Palin Pushes Tax Creep Argument

ABC News' Imtiyaz Delawala reports: Alaska Gov. Sarah Palin charged that Sen. Barack Obama’s tax plan is “so phony that it's already starting to unravel,” continuing an argument made by her running mate Sen. John McCain this week that the Obama campaign’s level for who will receive tax cuts is creeping downward.

“Now, his whole tax plan, really, it is, it's so phony that it's already starting to unravel, and we're gonna call it the way that we see it,” Palin said at an afternoon rally in York, Pa. “It seems like every few days, we're getting a new definition now of middle class, according to their plan, whose taxes he says he won't raise on the middle class.”

Palin pointed to a comment made by Obama supporter Gov. Bill Richardson in a radio interview this morning, in which the New Mexico governor cited $120,000 as the income level where Americans would receive a tax cut under Obama’s plan.

"What Obama wants to do is he is basically looking at $120,000 and under among those that are in the middle class, and there is a tax cut for those," Richardson said.

Palin pounced on the remark, adding it to Sen. John McCain’s attack earlier this week after Democratic vice presidential nominee Sen. Joe Biden cited $150,000 as the income level where Americans would receive a tax cut.

“And just this morning, Gov. Bill Richardson, a top surrogate for the Obama campaign, he who is working so hard to get Obama elected, Richardson, said Obama's tax plan would define middle class as $120,000 a year and under,” Palin said. “So now, we're down to less than half the original income level and, just give it a little more time, and Barack Obama will be back to raising taxes on folks earning $42,000 a year. We can't let this happen.”

A spokesperson for Richardson responded that he misspoke, meaning to say that those making less than $250,000 would not see a tax increase.

The Obama campaign added that neither Biden nor Richardson’s comment reflected a change in the maximum figure of who would receive tax cuts, maintaining that those making up to $200,000 would receive a tax cut, and only those over $250,000 would have their taxes raised.

“Gov. Richardson admitted that he simply misspoke, and yet Sen. McCain continues this dishonest, desperate political attack to distract voters from the fact that his low-road campaign is being rejected by voters across the country,” Obama spokesman Tommy Vietor said, responding to comments Sen. McCain also made today referring to Richardson’s remark. “The truth is that Sen. Obama wants to give tax breaks to 95 percent of workers and their families, while Sen. McCain’s plan provides no tax relief for more than 100 million Americans.”

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