Obama: "McCain Gives Oil Companies Tax Giveaways"

Obama has release this campaign commercial:



McCain does indeed want to lower the corporate tax rate for corporations (all of them, not just the big ones). You know, the same corporations the employ most of us. Yeah, they're evil. They should be taxed out of existence. You know how they're all raking in the cash in this great economy of ours.

And, contrary to what this ad implies and what the Obama campaign has been saying forever, McCain has no specific plan for lowering taxes on oil companies. The tax savings Obama sites for oil companies is simply the result of lowering the overall corporate tax rate. But if you believe Obama, you'd think McCain wanted to specifically lower the taxes on oil companies, which is not true.

The Associated Press actually has a good article outlining the issues involved:

McCain does call for a reduction in corporate taxes, from 35 percent now to 25 percent after 2014. But at least one Obama economic adviser has indicated that Obama himself might be open to a lower corporate tax rate — though not as low as McCain has recommended.

In an interview with Forbes.com last month, Jason Furman, Obama's director of economic policy, said: "He would like to cut the corporate tax rate, and it's a question that we're studying." In June, Obama also told The Wall Street Journal he might support a cut in corporate taxes. Still, Obama's economic plan aims the largest cuts toward lower-income taxpayers while McCain would give the largest tax cuts to high-income taxpayers.

The $4 billion in tax breaks for the oil companies is simply part of McCain's overall corporate tax reduction plan and does not represent an additional tax benefit. In other words, the corporate tax reduction applies to all corporations, oil companies included. Both Obama and McCain have proposed eliminating oil and gas tax loopholes.

Interesting, so Obama would also be in favor of reducing taxes on the "big corporations?" Of course I'm sure he'd find a way to exclude oil companies. We simply can't have companies being too successful in the United States. His plan would probably make companies with a high profit margin pay more taxes. Oh wait, that wouldn't work, since the profit margin of the oil companies is actually lower than many other industries.

And, according to the AP, both Obama and McCain have proposed eliminating the oil and gas tax loopholes.

Wrong Rating: 3 out of 4 (gross distortion)

McCain: "The Taxman Cometh"

McCain released the latest in his series of celebrity ads (they must be working for him to keep making them):



This of course is not the first time that Republicans have made this claim. I did some research and it seems pretty clear to me that the tax increases Obama is proposing apply only to those making over 250 thousand dollars a year. He has even said that the proposed capital gains tax increase would only apply to those making over $250,000. Taxes is of course a complicated issue, so if the McCain camp has an explanation for how exactly Obama would raise taxes on the middle class, I'd like to hear it. However, I can find no such details. So to claim that "Obama's new taxes could break your family budget" seems misleading, unless of course McCain assumes most families make over $250,000.

With that said, I would not call this an outright lie. Here are some possible ways to salvage this message:

1) There is an argument to be made that increasing taxes on the rich will be harmful to the economy. That's a valid point to make, but this ad clearly is not taking that angle. It clearly implies that Obama will increase taxes on average Americans, not that the taxes will hurt average Americans indirectly.

2) Another possible saving grace for this ad is if one argues that Obama's past voting record indicates that he would raise taxes, despite what Obama might be saying now. That is another good point, but again this ad does not make that argument. It could have said, "Obama has voted for higher taxes" rather than making it appear as if Obama has promised he will raise taxes, which the phrase "Obama's new taxes" clearly implies.

3) Finally, it can also be argued that Obama's proposed increases in spending will necessitate higher taxes, regardless of what he might promise now. Again, that is a valid point. The problem, however, is that McCain has promised to eliminate the deficit in four years. He claims to be able to do that simply by curbing wasteful spending without tax increases, but that seems like a pipe dream to me. So if McCain doesn't have a solid plan to balance the budget, then he can't criticize Obama's tax plan for not being fiscally balanced either.

As if I need another reason to call him out, the memory of McCain scolding Romney for running a negative primary campaign makes these ads all the more bitter to the taste.

Wrong Rating: 2 out of 4 (misrepresentation)