Posts Tagged ‘new new deal’

h1

New McCain Ad: Slippery Slope

October 30, 2008

H/T hotair:

Where will the tax hike plateau begin? 250,000? 200,000? 150,000? As has been noted the 150,000 number is where Biden sees “rich” as starting but he did not indicate that 150,000-200,000 would see a hike but we all know it would happen.

h1

CBS Factcheck: Obama Infomerical and the Cost of Obanomics

October 30, 2008

Wyatt Andrews of CBS writes about the cost of Obamnomics

Without question, the Barack Obama infomercial served as a very slick and powerful recitation of the biggest promises he’s made as a presidential candidate. But the very bigness of his ideas is the problem: he seems blind to the concept his numbers don’t add up.

Let’s start with his highly suspect, and widely discredited, claim that he can find federal “spending cuts beyond the costs” of his promises. Very few independent economists believe he has identified the savings needed to offset his remarkable list of tax credits, tax cuts and spending pledges.

Fact: Even if you believe Obama intends to fix health care, most independent analysts say the cost is massive – $1.2 trillion over ten years, according to the highly respected Lewin Group. When the new Congress wakes up next year to a $1 trillion deficit, and answers the overwhelming new demands for another stimulus package, will the leadership really bite on a health care reform package that digs the deficit hole so much deeper?

And that’s just the beginning of what Obama would spend.

Fact: The tax cuts he promises, which are mostly refundable tax credits (code for cash back), will cost $60 billion just in year one, according the National Taxpayers Union, though the Obama campaign’s own estimates in July put that figure at $130 billion.

Fact: His new promise to give businesses a $3,000 tax credit for each new job created will cost $40 billion. But economists say this credit is far more likely to benefit companies already planning to expand and will likely not be enough to help companies create new jobs or forestall layoffs.

Fact: Obama’s claim he will lower health care premiums by $2,500 is: 1.) guesswork, which is 2.) based on health care savings that might, in a perfect world, happen over 10 years – a fact Obama neatly glosses over.

Fact: Obama, when referring to savings he can make by leaving Iraq ($90 billion, according to Congressional Budget Office estimates), has spent these savings several times over, across several different promises depending on the crowd he’s addressing.

Most of the time he spends the Iraq savings in the context of the roads he wants to build; sometimes it’s for the teachers he wants to hire. Tonight, he riffed rhetorically on the savings, asking how many scholarships could be funded, or how many schools could be built. In the end though, presuming he really saves $90 billion, he can only spend it once.
Remember he also mentioned rebuilding the military ($7 billion/yr); his education initiative ($18 billion/yr); and his energy initiative ($15 billion/yr). He did not mention the $188 billion that he would spend on the brand new stimulus package he has proposed.

If he closes every loophole as promised, saves every dime from Iraq, raises taxes on the rich and trims the federal budget as he’s promised to do “line by line,” he still doesn’t pay for his list. If he’s elected, the first fact hitting his desk will be the figure projecting how much less of a budget he has to work with – thanks to the recession. He gave us a very compelling vision with his ad buy tonight. What he did not give us was any hint of the cold reality he’s facing or a sense of how he might prioritize his promises if voters trust him with the White House.

h1

More on the New Definition of “Rich” – 150,000 and Working its Way Down

October 29, 2008

Carl Campanile and Brendan Scott in the NYP deliver more to us on the Biden and his bout of latent patriotism revealing the truth (finally!) about their tax plan and who is considered rich in America. By next Tuesday, the tax hikes could be as inclusive as Bush’s tax cuts

Gaffe-prone Joe Biden put his foot in his mouth again yesterday, mistakenly excluding millions of Americans from his running mate’s tax-cut proposal.

The Delaware senator’s latest blunder came while discussing Republican tax policies during a television interview in his hometown of Scranton, Pa.¬†

“What we’re saying is, that $87 billion tax break doesn’t need to go to people making an average of $1.4 million,” Biden said.

“It should go to middle-class people, people who make $150,000 a year.”

Actually, Barack Obama has promised to cut taxes on households earning less than $200,000 a year while raising taxes on those who make more than $250,000 annually.

John McCain quickly cashed in on the slip.

During a rally in Hershey, Pa., McCain told supporters the gaffe revealed the Democrats’ true tax-and-spend intentions.

“It’s interesting how their definition of ‘rich’ has a way of creeping down,” McCain said.

“Senator Obama has made a lot of promises. First, he said people making less than $250,000 would benefit from his plan.

“Then, this weekend, he announced in an ad that if you’re a family making less than $200,000 you’ll benefit – but yesterday right here in Pennsylvania, Senator Biden said tax relief should only go to ‘middle-class people’ – people making under $150,000 a year.

“At this rate, it won’t be long before Senator Obama is right back to his vote that Americans making just $42,000 a year should get a tax increase.

“We can’t let that happen,” McCain added.

The Republican nominee has pounded Obama on taxes recently as economic woes have come to dominate the political debate.

Biden’s tax faux pas provided a new distraction for Obama as he tried to focus on broad, uplifting themes, like “change” and “hope,” in the final week of swing-state stumping.

Obama campaign spokesman Tommy Vietor issued a statement that corrected the vice-presidential candidate without explicitly saying so.

“No family making less than $250,000 will see their tax increases one cent,” Vietor said. “And if your family makes less than $200,000 – as 95 percent of workers and their families do – you’ll get a tax cut.”

Vietor went on to call McCain’s attack on Biden “desperate.”

“Maybe the McCain campaign keeps lying about Obama’s tax plan because with seven days left in this election, voters are rejecting McCain’s plan to give billions more in tax giveaways to big corporations and the wealthiest Americans,” he said.

Also during the stop in Hershey, McCain took a moment to shrug off reports of discord between his campaign staff and his running mate, Sarah Palin.

“By the way, when two mavericks join up, we don’t agree on everything,” McCain said. “But that’s a lot of fun! It’s wonderful to fool the pundits.”