Americans for Tax Reform—Fact Checking the Debate

WASHINGTON, DC— Americans for Tax Reform releases the following post-debate fact check:

Obama claims that the 95% of taxpayers making less than $200,000 will get a tax cut under his plan.  This is wrong:


There are 28 million small business owners in the U.S.  Of these, about 3 million make $200,000 per year or more.  Two-thirds of small business profits are earned by these business owners.  Small businesses pay their business taxes on their personal returns, so increasing tax rates on these 3 million business owners increases taxes on two-thirds of small business profits: http://www.irs.gov/pub/irs-soi/06in14ar.xls

Small businesses (companies with <100 employees) employ 42 million Americans.  If you increase taxes on most small business profits, many will be laid off: http://www.census.gov/epcd/susb/latest/us/US–.HTM


Obama actually did vote twice for budget resolutions that call for increasing the tax on capital gains, dividends, small businesses, workers, families, and even death:

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00172

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00142

  • Increases top rate from 35% to 39.6%
  • Increases lowest rate from 10% to 15%
  • Brings back the marriage penalty
  • Brings back a 55% death tax
  • Increases the capital gains tax from 15% to 20%
  • Increases the dividends tax from 15% to 39.6%
  • Cuts the child tax credit in half from $1000 to $500


Obama didn’t vote on the Peru FTA.  He could tell both sides he was with them: http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00413


The federal employee health benefit plan’s most popular plan costs $13,422 in 2009 (Blue Cross Blue Shield Standard family): http://www.opm.gov/insure/health/09rates/nonpostalffs2009.pdf

For any families making less than $250,000 per year or so, the McCain health credit will be a net tax cut assuming average health premium costs.  For lower income people, it will be a sizeable tax cut: http://www.irs.gov/formspubs/article/0,,id=164272,00.html

How much will the Obama tax hike shrink your 401(k)? www.atr.org