McCain, Obama Tax War Sparked With New Ads (VIDEO)

SEE UPDATE BELOW FOR NEW McCAIN RESPONSE

Early on Wednesday morning, both Barack Obama and John McCain released ads focused on taxes. If the tone of both spots proved predictable, the amount of money being pushed into each campaign's ad was not. Though McCain has outspent Obama on paid media in battleground states so far this month, Obama's new television ad will start getting pumped into several key states today -- specifically, Colorado, Michigan, Missouri, New Hampshire, Ohio, Pennsylvania, Wisconsin and Virginia.

By contrast, McCain's new piece is a radio ad, and his campaign has declined to reveal exactly how hard or in what parts of the country it will be pushed.

Entitled "Three Times," Obama's ad promises middle-class tax relief, contrasting the Illinois Senator's plan with McCain's tax breaks for large corporations.

Meanwhile, McCain's radio ad dings Obama for proposing more spending programs that "will lead to even higher budget deficits" and pile "more debt on the backs of your children and grandchildren."

Of course, the same Tax Policy Center that McCain's campaign used in a "fact sheet" accompanying the new radio ad has said McCain's budget would enlarge the deficit, as well. "Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years," the group wrote in its most recent report.

But for progressive writers like Paul Krugman who have despaired at the Obama campaign's "lethargic" economic messaging, the fact that Obama is counter-punching on taxes with an expensive media buy should prove a welcome development.

UPDATE: The McCain campaign has responded to Obama's ad by disputing the implication that tax breaks for companies hurt the economy.

"America's business taxes are the second highest in the world, and that is driving American jobs overseas," wrote McCain spokesman Tucker Bounds in an email to reporters. "So while American families are hurting and jobs are becoming scarce, Barack Obama is pushing for billions in higher taxes -- it's a recipe for economic disaster."

But, interestingly, the lengthy "fact sheet" sent out with Bounds's response does not offer any push-back against the idea that Obama's tax plan would provide three times as much relief to middle-class families compared to McCain.

Comments

[aware4O]

how about linking patriotism to
1- keeping jobs home
2- middle class tax relief of $1000
3-energy independance with solar, wind, gas, hybrid, etc

i am tired of the repubs arguing that patriotism is only related to military service and national security (land security)

national security means just that. NATIONAL SECURITY : economic security, health security, education security, land security ..... in one word : mind security. period

[mollyjackson]

Patriotism is commonly defined as the love for or devotion to one's country. The definition has nothing to do with: jobs, tax, or energy. Those would fall under devotion to self.

[AnotherToerag]

Not really... moving job overseas shows that you don't care about the workers in your country...

[LanosIceland]

It's not american corporate taxes that are driving jobs overseas, it american corporate greed and lack of patriotism. American companies need to finally show their patriotism, by putting their country and and the economic well being of their citizen ahead of financial gluttony. That's real patriotism.

[thegreatgiginthesky]

Lanos - Corporations are only interested in the bottom line. You don't run a business based on patriotism. The problem is that the government is paying these corporations to outsource jobs. So on one hand the corporations will be able to hire employees that will work for mere pennies and they won't have to bother with such pesky things like benefits and the US government will actually pay them to do this.

[HadEnoughCrap]

I love the fact that McCain is arguing that the American average person should vote for him because he'll give tax breaks to wealthy corporations. Good move McSpongebath Dependspants.

[UnbiasView]

How many Americans view corporations as evil?

Millions work for them, millions buy their products . . .

[helen]

Why isn't Obama simply asking the Reagon question, "Are you better off now than you were eight years ago? Do you really want four more years of the same?"

Simple. Effective. To the point.

[UnbiasView]

Reagan moved polls, the politicians of today follow them.

[theMightyT]

that's a great piece of gibberish that means absolutely nothing.

So basically what you're saying is, Reagan was a world-class panderer? or what is your point?

[mshazen]

Ugh, Reagan. Please no more every time a republican opens his mouth Reagan pops out.

[thegreatgiginthesky]

The neo-cons meanwhile are scrambling to blame the democrats but there is just one big problem, this mess started well before the dems took congress. Gas was already on its way up.

[UnbiasView]

"this mess started well before the dems took congress. Gas was already on its way up."

Then why would Pelosi say that if you elect Dems in 2006, we will lower gas prices . . .

[ebonyjsg]

Actually Obama does ask the question are you better off?, But of course the MSM never ever shows it! I am so disgusted with the MSM biasness toward McCain! Obama really understands what the average American is going through! Obama will be great for this country! I just pray the American people will wake up and realize that and give him a chance to make a difference and get out there and vote! OBAMA08

[hypnotoad72]

I thought it was lack of "skilled workers" driving jobs overseas?

Actually, there's more proof that lower wages are a bigger reason for jobs going overseas.

GM whines about healthcare costs being too high, hence their dismissing of jobs.

Now it's high taxes... In the 1950s, the corporate tax rate was in the upper 80%s. If I recall, it's 35% as of now. Meanwhile states have been losing budgets and our infrastructure is crumbling. That will inevitably affect corporations too, but I digress. How low should it be? How high should workers' tax rates be? How much will corporations pay for work?

[UnbiasView]

Yeah, you are mistaken . . . . in 1950 the top corporate rate from 38% to 45%.

BTW, taxes aren't paid by corporations anyways, they are paid by the consumer. If you think they don't matter, look at why highly taxed states don't see new business popping up while low taxed states do.

[AceOfSpades]

That's not completely true. The burden of a tax depends on the good's elasticity.

[Podewumun]

Can you explain then why VW choose Tennessee (with a 10%+ sales tax rate) over Alabama (with an 8% sales tax rate) as the site for their new auto plant?
Your argument, as usual, is total rubbish.

[theMightyT]

well, isn't the tax burden shared by everyone? consumer, investor, etc...

[mshazen]

I am so done with the lets be kind to the corporations because they will be kind back. Over take your failed Reaganomics back please it started the disaster we are in now. It began the big corporate greed. They take all their tax breaks and pay there top employees and screw everyone else cut jobs or ship them overseas no one is buying what you are selling anymore. So if we cut all the loopholes and start making these companies pay what they should they can't do this anymore.

[hardlyhikin]

If taxes are paid by the consumer and not by the corporation, why would it matter to the corporation where they are located?

Your logic is just as fuzzy as you claim ours to be.

[yhgtup]

What do you really remember about Barack's ad? (uh, uh). But, I do remember John McCain's ad said something about my children, grandchildren & debt. Massive spending & my life savings, & oh yeah, that "celebrity" word, again. This is what the Rethugs do. They use deliberate, target-audience words, that stick with voters. Even the (sarcastic) voice in this ad is deliberate. They hit quick, & they hit hard. (Remember McCain's answer to the "evil" question at Saddleback that got so much applause? "Defeat it"!!, he said, even though he didn't answer the first part of the question, as to whether evil existed). But, it worked. Just as these head-on, straight for the jugular, ads are working. Barack had better stop eating that cotton-candy, & toughen up.

[mshazen]

Yes remember the red states, 90 average IQ, I am not being mean just honest it is a fact, they like the one word, one line reference. This is not the primary anymore. The ads must, dare I say it be less sophisticated.

[researcher]

mc cain wins again

not these ads but the 527's will do obama in

white america is looking for an excuse not to vote for a black pres

racist america will come through loud and clear

he did all right with the demos but they are the liberal america

americans want war and tax breaks

oh the fruits of capitalism corp fascism and wars for profits

but lets brag about how great our capitalism is

while we borrow from kings, socialists, and communists

the american mentality brag then borrow

[ArmyCentrist]

Economy, economy, economy...keep hitting on it O!

[Strywever]

So now it's taxes that are driving big companies to outsource jobs, and not cheap labor?

McCain's Republican trickle-down economics theory has proven to be a failure over and over again . . . why on earth would anyone still believe it?

[UnbiasView]

Here is the question, do you want a global economy or not?

If the answer is yes, MFG is never coming back here. If no then fine, shut the doors and live in our own happy place where everything costs twice as much.

[gapanther]

MFG could come back as green jobs. Old MFG jobs aren't coming back, I don't believe.

[thegreatgiginthesky]

Here is another question, what is the use of having cheaper products if most of the public can't afford to buy it because they don't get paid enough or don't have jobs.

[frappe]

We need a "smart" economy that balances competing interests. Clearly, if the present trends were to continue unabated, we will end up with a two class system here in the States -- a tiny, ruling elite of the ultra wealthy and everybody else consisting of a huge, poor, lower class. Gone will be the indisputable strength of our economic engine -- the middle class. There also seems to be other collateral damage in the political arena as well, as we seem to be moving towards a more fascist, police state with power concentrated in some authoritarian, executive branch. These trends are very, very disturbing to say the least. So, if I had to choose between your two choices, I'd choose the latter where we protect our citizens interests and way of life FIRST.

[theMightyT]

your question doesn't make any sense.

There already IS a global economy. China and Dubai own America's, unfortunately.

It's not a question of having a global economy or not. The question is how to retake the top spot - the auto industry is tanking, the housing markets are not doing well, the government has had to bail out bank after bank... all thanks to hopelessly incompetent management by the current administration. Deregulation has led to the economic meltdown - conservative policies just don't work.

[hypnotoad72]

Why does it cost twice as much?

Regulations
Quality control
Workers who can afford to buy the products they make

Who doesn't want a global economy?

But then, what's your definition of "global economy" because I might be able to debate it; if they hadn't before, media outlets are now talking about America being left behind. Some ramifications of globalization weren't thought of in advance. And some will blame the working class for those too.

[frappe]

Exactly. Republican economic ideology has proven to be a consistent, pathetic failure. To continue spouting them as solutions to our economic woes is pure nonsense. They are actually the cause of our economic woes, not its solution.

[UnbiasView]

You have been clearly brainwashed.

[loax]

Tucker Bounds is a blubbering IDIOT. With the Republicans, it is ALWAYS about the big corporations and the rich, and to hell with the rest of us! To continue to give and increase more tax breaks for corporations will only increase the burden placed on our already overloaded shoulders. Take your tax plan and shove it Sen. McCain!

[UnbiasView]

As opposed to the Democrats who make their tax plans on "feelings" and "fairness" in their minds?

Why isn't it fair for some people to make a crap load of money?

I think it is fair if you come to the market with no skills and no work ethic that you don't get crap.

[Podewumun]

"No skills and no work ethic". That sounds like McCain and his second wife.

[theMightyT]

conservatives still cling to the failed Reagan model. They have absolutely no ideas (and no idea what they're doing).

At least Democrats recognize when something isn't working, and aren't afraid to try to fix it.

Unlike republicans, who just can't admit their policies are a failure.

[mshazen]

Who is it that has no skills or work ethic the steel workers auto workers, ect. Do all these people have less skill or work ethic than the CEO who now makes millions of dollars a year while people get laid off or can't get good health programs through their jobs. Are you saying all those millions of Americans have no skill or work ethic, or is it just wealthy Americans that do.

And Yes thank you I want a President who makes their "Tax Plan" on FAIRNESS that would be fantastic, I know republicans are not familar with that it may take time to adjust.

[strength]

heard the lying negative ad from Mccain today, says Obama will destroy the economy and that his effects will cause the gas prices to raise. Sounded kinda like he was talking about his own policies, or the Bush policies, if there are any differences. what a joke!

[UnbiasView]

Yes, that is a lying ad because I don't believe that a single man can destroy the US economy either way.

BTW, I have heard many of liberals blame Bush for destroying the economy too.

[HowietheScreamer]

And their right. Duuhbuhya and his gang of economic incompetents have destroyed the US economy.

[american2008]

Yes numb-nuts, unlike Bushy Obama is NOT the President!

[mshazen]

Oh, yeah btw it wasn't just the economy.

[dnegri]

Well, the piece contains one of the main Republican duplicitous talking points: "America's business taxes are the second highest in the world, and that is driving American jobs overseas," wrote McCain spokesman Tucker Bounds in an email to reporters." Well, this is one meme that is easy to deflate: http://www.reuters.com/article/idUSN1249465620080812....or: http://news.yahoo.com/s/ap/20080812/ap_on_bi_ge/corporations_income_tax

[indieminded]

"UPDATE: The McCain campaign has responded to Obama's ad by disputing the implication that tax breaks for companies hurt the economy."

=============================================================

Hello, GOP- this trickle-down theory of economics IS NOT working! How many more years are you going to continue to give breaks to the wealthy and big business and tell us it's working to grow the economy? It only works, in theory, if the big companies who benefit from these tax breaks actually use their profits to expand and grow their business and staff. With the current "Enron ethics" of corruption, greed, and huge bonuses for the top board members, nothing is "trickling down."

Time for a new approach!

[UnbiasView]

"give breaks to the wealthy and big business and tell us it's working to grow the economy?"

Quick question . . . show me the economy not growing in the past years and we'll talk.

The problem is you expect constant growth that isn't reality.

Housing prices needed to drop.
Mortgage bubble needed to pop . . . government bailed it out.

[mshazen]

Show me in this country where people are better off than they were before, Oh right the top 3%. We are 9 trillion in debt. China owns us last time I checked. The dollar well pathetic. Why don't you show me our great economic growth. Nothing is American anymore. We should be the leaders in Green tech. Money can and should be made there. Why don't you show me this great list of terrific things the Bush Administration has done. (there I threw you a bone and didn't blame him for everything)

[UnbiasView]

"With the current "Enron ethics" of corruption, greed, and huge bonuses for the top board members, nothing is "trickling down.""


What is your solution . . . government?

Last I checked the Congress couldn't even run a restaurant without driving it into the red.

[chiefeditor]

Audio from this newest Obama ad is now live: http://www.entertonement.com/collections/2278/Barack-Obama-New-Tax-Ad

[Chavez08]

It's tax rebate time and I have 0 (zero) income and I get a 2% tax break....[OK, I've got my notepad...let's see....carry the 0, and my total is.....]

[UnbiasView]

Try getting a job and stop blogging.

[bryansmith]

You left out the 1000 energy tax credit for middle class families