Obama Camp Response to McCain Economic Memo

Obama spokesman Tommy Vietor: "They're pointing to a budget resolution, which did not raise taxes.  In fact, the same resolution called for middle class tax cuts and amt reform. Independent analysis from the TPC shows that Obama's plan would offer 3 x the tax savings for middle class families.  [Tax Policy Center, 6/12/08].  Obama's plan wouldn't raise taxes on families making under $250K/year, and in fact 97% of Americans below that threshold are overwhelmingly likely to see their taxes cut under the Obama plan.  For 95% of working Americans, the Obama plan will give you a $500 per worker -- $1000 per working family - tax credit to offset the payroll taxes you pay.

The Budget Resolution also had the following language in it, none of it has the force of law.   We can say that "'The budget resolution specifically calls for middle income tax relief and relief from the
alternative minimum tax for the Middle class.'"

--S.Con.Res.70--

SEC. 206. DEFICIT-NEUTRAL RESERVE FUND FOR MIDDLE-INCOME TAX RELIEF AND
ECONOMIC EQUITY.

In the House, the Chairman of the Committee on the Budget may revise the
allocations, aggregates, and other appropriate levels in this resolution
for any bill, joint resolution, amendment, or conference report that
provides for tax relief for middle-income families and taxpayers or
enhanced economic equity, such as extension of the child tax credit,
extension of marriage penalty relief, extension of the 10 percent
individual income tax bracket, elimination of estate taxes on all but a
minute fraction of estates by reforming and substantially increasing the
unified credit, extension of the research and experimentation tax
credit, extension of the deduction for small business expensing,
extension of the deduction for State and local sales taxes, or a tax
credit for school construction bonds, by the amounts provided in such
measure if such measure would not increase the deficit or decrease the
surplus for the period of fiscal years 2008 through 2013 or for the
period of fiscal years 2008 through 2018.

SEC. 207. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE ALTERNATIVE
MINIMUM TAX.

In the House, the Chairman of the Committee on the Budget may revise the
allocations, aggregates, and other appropriate levels in this resolution
for any bill, joint resolution, amendment, or conference report that
provides for reform of the Internal Revenue Code of 1986 by reducing the
tax burden of the alternative minimum tax on middle-income families by
the amounts provided in such measure if such measure would not increase
the deficit or decrease the surplus for the period of fiscal years 2008
through 2013 or for the period of fiscal years 2008 through 2018.

SEC. 221. DEFICIT-NEUTRAL RESERVE FUND TO STRENGTHEN AND STIMULATE THE
AMERICAN ECONOMY AND PROVIDE ECONOMIC RELIEF TO AMERICAN FAMILIES.

(a) Tax Relief- The Chairman of the Senate Committee on the Budget may
revise the aggregates, allocations, and other appropriate levels in this
resolution for one or more bills, joint resolutions, amendments,
motions, or conference reports that would provide tax relief, including
extensions of expiring and expired tax relief and refundable tax relief,
by the amounts provided in that legislation for those purposes, provided
that such legislation would not increase the deficit over either the
period of the total of fiscal years 2008 through 2013 or the period of
the total of fiscal years 2008 through 2018.

SEC. 401. POLICY OF THE HOUSE ON MIDDLE-INCOME TAX RELIEF.

It is the policy of the House to--

(1) minimize fiscal burdens on middle-income families and their children
and grandchildren;

(2) provide immediate relief for the tens of millions of middle-income
households who would otherwise be subject to the alternative minimum tax
(AMT) under current law, in the context of permanent, revenue-neutral
AMT reform; and

(3) support extension of middle-income tax relief and enhanced economic
equity through policies such as--

(A) extension of the child tax credit;

(B) extension of marriage penalty relief;

(C) extension of the 10 percent individual income tax bracket;

(D) elimination of estate taxes on all but a minute fraction of estates
by reforming and substantially increasing the unified tax credit;

(E) extension of the research and experimentation tax credit;

(F) extension of the deduction for State and local sales taxes;

(G) extension of the deduction for small business expensing; and

(H) enactment of a tax credit for school construction bonds.

The House assumes that the cost of enacting such policies is offset by
reforms within the Internal Revenue Code of 1986 that promote a fairer
distribution of taxes across families and generations, economic
efficiency, higher rates of tax compliance to close the tax gap, and
reduced taxpayer burdens through tax simplification.