Can’t Trust Obama on Taxes

Today Obama Said He Wanted To “Take A Pledge” Not To Raise Taxes On Anyone “Making Less Than $250,000 A Year”:

While Campaigning In New Hampshire, Obama Pledged That “No One Making Less Than $250,000 A Year Will See Any Type Of Tax Increase.” “Barack Obama began an important two-day campaign visit to swing state New Hampshire today by … taking his own version of the Granite State’s state’s [sic] anti-tax pledge. … ‘I want to take a pledge,’ he told about 250 supporters and independents in his first of two stops today. ‘I pledge that under my plan, no one making less than $250,000 a year will see any type of tax increase. Not income tax, not capital gains taxes, not any kind of tax.’” (John Distaso, “In NH, Obama Makes ‘Pledge’ Against Tax Hikes On Most Americans,” The [Manchester, NH] Union Leader, 9/12/08)

OBAMA’S PLEDGE CONTRADICTS HIS VOTING RECORD

Obama Voted In Favor Of The Democrats’ FY 2009 Budget, Which Would Raise Tax Rates For Americans Earning $42,000 Or More:

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)

The Democrats’ Budget Would Raise Taxes On Individuals Earning Approximately $42,000 Or More. “The resolution Obama voted for would not have increased taxes on any single taxpayer making less than $41,500 per year in total income, or any couple making less than $83,000. The $32,000 figure is approximately the taxable income of a single person making $41,500 per year, after all deductions and exclusions.” (FactCheck.org, “The $32,000 Question,” www.factcheck.org, 7/11/08)

• NOTE: The Democrats’ Budget Raised Tax Rates On The 25, 28, 33 And 35 Percent Brackets. For 2008, The 25 Percent Bracket Begins At The Taxable Income Level Of $32,550, Which Is The Figure After All Deductions And Exclusions Are Subtracted From Total Earnings. (“2008 Individual Income Tax Rates, Standard Deductions, Personal Exemptions, And Filing Thresholds,” www.taxpolicycenter.org, 11/4/07; Andrew Taylor, “Presidential Hopefuls To Vote On Budget,” The Associated Press, 3/13/08)

The Budget Also Allows “More Than 20 Million Middle-Class Taxpayers To Be Hit By The Alternative Minimum Tax” After Next Year. “The Senate Wednesday approved a $3.1 trillion election-year Democratic budget blueprint that leaves to the next president the task of sorting out a host of fiscal problems. … It also manages to predict small budget surpluses by 2012, but only by permitting several of President Bush’s tax cuts to expire as scheduled at the end of 2010 and by allowing more than 20 million middle-class taxpayers to be hit by the alternative minimum tax, or AMT, after next year.” (Andrew Taylor, “Senate Approves Stand-Pat Democratic Budget Plan,” The Associated Press, 6/4/08)

The Budget Would Also Let Capital Gains And Dividends Tax Relief Expire In 2011, Nearly Doubling The Capital Gains Tax Rate And More Than Doubling The Dividend Tax Rate. (Andrew Taylor, “House, Senate Debate Democratic Budget Plan,” The Associated Press, 5/21/08)

OBAMA’S PLEDGE CONTRADICTS HIS EARLIER CAMPAIGN RHETORIC

During The Campaign, Obama Has Called For Higher Taxes On Americans Earning Significantly Less Than $250,000:

September 2007: Obama Suggested Applying The 12.4 Percent Social Security Tax To All Earnings. “While Obama has suggested imposing the 12.4 percent tax on all income above $97,000 per year, Edwards would only impose it on those making more than $200,000 per year. Income between $97,000 and $200,000 would continue to be exempt from Social Security taxes under the Edwards proposal.” (Teddy Davis, “Obama Floats Social Security Tax Hike,” ABC News, abcnews.go.com, 9/22/07)

• Obama: “If We Kept The Payroll Tax Rate Exactly The Same But Applied It To All Earnings And Not Just The First $97,500, We Could Virtually Eliminate The Entire Social Security Shortfall.” (Sen. Barack Obama, Op-Ed, “Fixed-Income Seniors Can Expect A Tax Cut,” Quad City Times [IA], 9/21/07)

April 2008: Obama Said He’d Raise The Capital Gains Rate To 20 Percent Or Higher, And Said That Wouldn’t Impact The “Average Person.” Obama: “In terms of capital gains, I’ve suggested we might go back up to 20 (percent), because…” Fox News’ Chris Wallace: “You had suggested 28 (percent).” Obama: “Well, what I’ve said is I certainly would not raise it higher than it was under Ronald Reagan, but the fact is that I’m mindful that we’ve got to keep our capital gains tax to a point where we can actually get more revenue. But that’s not something that’s going to affect the average person with a 401(k) when people start talking about how, ‘Well, there are, you know, millions of Americans who own stock,’ most of them own stock in 401(k)s where their taxes are deferred and they pay ordinary income taxes when they finally cash out.” (Fox’s’ “Fox News Sunday,” 4/27/08)

June 2008: Obama Said He Would Raise Taxes On The Top 5 Percent Of Earners, Meaning Those Earning Approximately $145,000 Or More A Year.  Obama: “It is true that those like myself who are in the top 5 percent, we’re going to see a tax increase. I’m going to roll the Bush tax cuts back to the levels they were in the 1990s.” (Fox Business’ “Fox Business,” 6/26/08)

• In 2005, The Cut Off For The Top 5 Percent Of Earners Began At $145,283 – Well Below Obama’s $250,000 Threshold. “Including all tax returns that had a positive AGI, those taxpayers with an AGI of $145,283 or more in 2005 constituted the nation’s top 5 percent of earners.” (Gerald Prante, “Summary Of Latest Federal Individual Income Tax Data,” www.taxfoundation.org, 10/5/07)

OBAMA’S PLEDGE CONTRADICTS HIS OWN ADVISERS

Obama Pledged That No One Making Less Than $250,000 Would See A Tax Increase, But His Economic Advisers Said Individuals Would See Higher Taxes Starting At $200,000:

In August, Obama’s Economic Advisers Wrote An Op-Ed That Said Individuals Would See Higher Taxes Starting At $200,000 Under An Obama Administration. Obama Economic Advisers Jason Furman And Austan Goolsbee: “Sen. Obama believes that one of the principal problems facing the economy today is the lack of discretionary income for middle-class wage earners. That’s why his plan would not raise any taxes on couples making less than $250,000 a year, nor on any single person with income under $200,000 — not income taxes, capital gains taxes, dividend or payroll taxes.” (Jason Furman and Austan Goolsbee, Op-Ed, “The Obama Tax Plan,” The Wall Street Journal, 8/14/08)

From GOP.com