When the Democratic Candidates Lie
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| Mon, 10-06-2008 - 8:17pm |
http://voices.washingtonpost.com/fact-checker/2008/09/four_pinocchios_for_bidens_tax.html
John McCain and Sarah Palin "are proposing the largest increase on middle class taxpayers in American history....It will cost the middle class over one trillion dollars in additional taxes. It is almost unbelievable." --Joe Biden campaign rally, Greensburg, PA. September 25, 2008.
Democratic vice presidential hopeful Joe Biden claims that middle class Americans will be slapped with the "largest tax increase in American history" as a result of the McCain health care plan. It is true that McCain has proposed taxing the health-care benefits that Americans receive through their employers. However, Biden conveniently overlooks the fact that the Republican nominee is offering tax-payers a credit that should cover the cost of going out and buying insurance.
The Facts
John McCain wants to drastically overhaul the health insurance system in order to encourage Americans to go out and buy their own health care plans rather than relying on employer-based plans. To achieve this, he plans to tax employer-provided health benefits and provide a $2,500 tax credit ($5,000 for families) toward the cost of health insurance.
By most independent calculations, the McCain plan will leave most taxpayers better off in strictly financial terms, at least until 2013. After 2013, the benefits will begin to diminish. By 2018, taxpayers in the top quintile will be slightly worse off, but middle-income taxpayers will either break even or be slightly ahead. According to the non-partisan Tax Policy Center, the McCain proposals will result in a net benefit of $1,241 to the average tax payer in 2009, $895 in 2013, and $386 in 2018.
"It is not fair to pull out just one part of the McCain proposal," said Eric Toder, a TPC analyst. "It is a package. They are giving back more than they are taking away."
Jason Furman, director of economic policy for the Obama campaign, pointed out that the McCain campaign skips over the tax increase side of the health plan on its website and focuses instead on the tax credit. He also notes that, according to the McCain website, the credit will be paid directly to insurance companies to cover the cost of health insurance rather than to individuals.
This is true, but it is still a tax credit, in whatever manner it is paid. If you are able to buy insurance for less than the cost of the credit, you will be able to deposit the balance in a health savings account, according to the McCain plan.
So how did Biden arrive at the $1 trillion price tag for "middle class" tax payers? Probably from the Office of the Management and Budget which estimates the cost of excluding employer-provided health benefits from tax revenues at $1.05 trillion between 2009 and 2013. Note that this is all taxpayers, not just the "middle class."
It is worth noting that there has been a lot of loose talk about taxes on the campaign trail. The McCain campaign has accused Biden of supporting the "largest tax increase in American history" by voting for a non-binding budget resolution that would phase out the Bush tax cuts of 2001 and 2003. This is nonsense, on several levels. First, the Bush tax cuts are due to be phased out anyway under current law. Second, Obama and Biden favor an extension of the Bush tax cuts for middle and low-income Americans. Third, by any reasonable measure, any tax increases endorsed by Obama or Biden are trivial compared to the huge tax hikes of World War II.
The Tax Policy Center estimates that the repeal of the Bush tax cuts would result in a reduction of after-tax incomes of 4.2 percent, and 2.67 percent for taxpayers in the middle-income quintile. During World War II, by contrast, federal tax revenues ballooned from $8.7 billion to $45.2 billion. Federal taxes as a share of GDP grew from 7.6 percent in 1941 to 20.4 percent in 1945.
The Pinocchio Test
Both campaigns have stretched the truth to the breaking point in describing each other's tax plans. In this particular case, Joe Biden has looked at only the negative side of the balance sheet--and ignored the positive. It is simply not true that the McCain health plan represents the largest "tax increase" in American history.







Oops. You ought to make sure your data's current, before regurgitating it onto the page here as boilerplate. From earlier today in the Wall Street Urinal:
My data is current.
Say it ain't so Joe! I think the botox is seeping into his brain...
Does Joe Biden REALLY Hang Out At Home Depot And Katie's Restaurant?
During the Vice-Presidential debate between Gov Sarah Palin and Sen Joe Biden, the good senator said:
Quote:
"Look, all you have to do is go down Union Street with me in Wilmington or go to Katie's Restaurant or walk into Home Depot with me where I spend a lot of time and you ask anybody in there whether or not the economic and foreign policy of this administration has made them better off in the last eight years. ..."
What a nice homey story from a down-to-earth man of the people who really, REALLY knows what it is to be a common everyday citizen. Does anyone believe that he actually spends time in Home Depot talking politics with the citizenry? Does anyone believe that he talks domestic policy with the other diners at Katie's Restaurant?
Well, I for one believe that Joe was telling another one of his little white lies. Or, possibly one of his WHOPPERS!
You see, Katie's Restaurant has been closed for 20 years!
No doubt, Sen Biden spent time in Katie's Restaurant some 20 years ago, before he became an entrenched Washington insider. But his folksy little excursion into middle America was nothing but a complete LIE!
http://theminorityreportblog.com/blog_entry/david_hinz/2008/10/03/does_joe_biden_really_hang_out_at_home_depot_and_katie_s_restaurant
((By most independent calculations, the McCain plan will leave most taxpayers better off in strictly financial terms, at least until 2013.))
I heard the spokesperson for McCain's camp (her name slips my mind, but she wears turtlenecks to cover up her red neck flushing. lol.) She said that "taxpayers would be better off than TODAY" meaning before the healthcare taxes, but NOT in comparison to Obama's plan which covers more people and will not cost the taxpayer as much money. If their plan was better, the GOP would be talking about it more. In desperation mode, the GOP will say ANYTHING to win!