McCain Campaign Press Release - John McCain 2008 Launches New Radio Ad: "Recipe"

ARLINGTON, VA -- U.S. Senator John McCain's presidential campaign today released its latest radio ad, entitled "Recipe." The ad highlights Barack Obama's record of voting to raise taxes on middle class families and his proposals for painful tax increases that will only hurt Americans in these tough economic times. The ad will play in key states.

LISTEN TO THE AD HERE: http://www.youtube.com/watch?v=5iDkg_clAsI

Script For "Recipe" (Radio :60)

ANNCR: Life in the spotlight must be grand for Barack Obama. But is he ready to lead in tough economic times?

Official records document, Barack Obama has a history of raising taxes -- even on middle class Americans making just $42,000 a year.

If elected President, Obama's promises would mean even more taxes on income, electricity, oil, small business, seniors, your life savings, your family.

Painful taxes when times are tough enough.

The Las Vegas Review-Journal calls Obama's ideas "a recipe for economic disaster".

The Washington Post says Obama's policies are "poorly crafted" and will result in "higher prices at the pump."

And The Wall Street Journal reports Obama's plans will "stunt small business" and threaten "America's economic competitiveness."

More taxes. Higher gas prices. A recipe for economic disaster.

That's the real Obama.

JOHN MCCAIN: I'm John McCain and I approved this message.

ANNCR: Paid for by John McCain 2008.

AD FACTS: Script For "Recipe" (Radio :60)

ANNCR: Life in the spotlight must be grand for Barack Obama. But is he ready to lead in tough economic times? Official records document, Barack Obama has a history of raising taxes -- even on middle class Americans making just $42,000 a year.

Barack Obama Voted Twice In Favor Of The Democrats' FY 2009 Budget Resolution. (S. Con. Res. 70, CQ Vote #85: Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48- 45: R 2- 44; D 44- 1; I 2-0, 6/4/08, Obama Voted Yea)

FactCheck.org: The Budget Resolution Would Have Allowed Most Of The Provisions Of The 2001 And 2003 Tax Cuts To Expire, Effectively Raising Taxes On Those Making $41,500 In Total Income. "What Obama voted for was a budget resolution that would have allowed most of the provisions of the 2001 and 2003 tax cuts to expire. In particular, the resolution would allow the 25 percent tax bracket to return to its pre-2001 level of 28 percent. That bracket kicks in at $32,550 for an individual or $65,100 for a married couple. But as those of you who have filled out a 1040 know, that's not actually how income taxes work. We don't pay taxes on our total earnings; we pay them based on our 'taxable income.' The Urban-Brookings Tax Policy Center's Eric Toder told FactCheck.org that 'people with taxable income of $32,000 would have a total income greater than that.' In 2008, anyone filing taxes with single status would be entitled to a standard deduction of $5,450, as well as a personal exemption of $3,500. So to have a taxable income high enough to reach the 25 percent bracket, an individual would need to earn at least $41,500 in total income, while a married couple would need a combined income of at least $83,000."("The $32,000 Question," FactCheck.org, http://www.factcheck.org, 7/8/08)

FactCheck.org: "Obama's Votes Indicate A Willingness To Raise Taxes." "Certainly Obama's votes indicate a willingness to raise taxes, and Obama has not been shy about saying explicitly that he will raise some taxes." ("The $32,000 Question," FactCheck.org, http://www.factcheck.org, 7/8/08)

Obama Campaign: Barack Obama Voted For A Budget Resolution That Wouldn't Have Increased Taxes For Any Taxpayers Making Less Than $41,500. ROSEN: "Campaign aides to Senator Obama today, called the charge that he voted for tax hikes on people making only $32,000 a year, quote, 'bogus.' They circulated an analysis stating that the resolution that Obama had voted for would not have increase taxes on single taxpayer making less than $41,500 a year in total income." (Fox News' "America's Election Headquarters," 7/30/08)

The New York Times: Barack Obama's "Vote Was On A Budget Resolution To Raise Taxes On People Making $41,500 A Year." "FactCheck.org, a nonpartisan Web site, said the vote was on a budget resolution to raise taxes on people making $41,500 a year; the $32,000 figure, it said, was the amount of taxable income those people had." (Michael Cooper, "McCain Goes Negative, Worrying Some In GOP," The New York Times, 7/30/08)

The Associated Press: Budget Resolution "Would Have Allowed Tax Rates To Return To Pre-2001 Levels, Meaning That An Individual With Taxable Income Of About $32,000 Would Have Faced A Tax Increase." "At issue is Obama's vote on a non-binding budget resolution in March that called for President Bush's tax cuts to expire. Such a step would have allowed tax rates to return to pre-2001 levels, meaning that an individual with taxable income of about $32,000 would have faced a tax increase. Taxable income is what's left after taxpayers account for deductions." (Liz Sidoti, "Obama Dismisses Conservative Criticism," The Associated Press, 7/12/08)

In June 2008, Obama Said "The Senate Voted To Stand Up For Working Families In Illinois And Throughout The Nation" By Passing The Democrats' Final Budget Resolution. Obama: "Today the Senate voted to stand up for working families in Illinois and throughout the nation by rejecting the failed policies of the Bush Administration and moving our country back on track to fiscal discipline. ... Our country needs change, and this budget is an important step in the right direction. I commend House and Senate leaders for working together to move this legislation through Congress." (Sen. Barack Obama, "Statement Of Senator Barack Obama On The Senate 's Passage Of The FY 2009 Budget Resolution," Press Release, obama.senate.gov, 6/4/08)

In March 2008, Obama Hailed His Vote For The Budget As Making "Significant Progress In Getting Our Nation's Priorities Back On Track." Obama: "The budget passed by the Senate tonight makes significant progress in getting our nation's priorities back on track. ... We need change in this country, and this budget is an important step in helping bring it about." (Sen. Barack Obama, "Obama Statement On The Senate's Passage Of The FY 2009 Budget," Press Release, obama.senate.gov, 3/14/08)

ANNCR: If elected President, Obama's promises would mean even more taxes on income, electricity, oil, small business, seniors, your life savings, your family. Painful taxes when times are tough enough.

Barack Obama Has Called For Higher Income Taxes, Social Security Taxes, Capital Gains And Dividend Taxes, And Corporate Taxes, As Well As "Massive New Domestic Spending." "Obama's transformation, if you go by his campaign so far, would mean higher income taxes, higher Social Security taxes, higher investment taxes, higher corporate taxes, massive new domestic spending, and a healthcare plan that perhaps could be the next step to a full-scale, single-payer system. Is that what most Americans want, someone who will fulfill a Democratic policy wish list?" (James Pethokoukis, "Barack Hussein Reagan? Ronald Wilson Obama?" U.S. News & World Report's "Capital Commerce" Blog, www.usnews.com, 2/12/08)

Barack Obama Would Raise Social Security (Payroll) Taxes On Families. "Obama's proposal would impose social security taxes on income above $250,000 per year. He would continue to exempt income between $102,000 and $250,000 from social security taxes." (Teddy Davis, Sunlen Miller, and Gregory Wallace, "Obama Kisses Billions Goodbye," ABC News' "Political Radar" Blog, blogs.abcnews.com, 6/18/08)

Barack Obama Would Raise Income Taxes. Obama: "[I] would roll back the Bush tax cuts for those making over $250,000." (Sen. Barack Obama, CNN Democrat Presidential Candidate Debate, Manchester, NH, 6/3/07)

U.S. Department Of Treasury: Small Business Owners "Are Frequently Subject To The Highest Individual Income Tax Rates." "Changes in the individual income tax affect most businesses in the United States. That is because taxes on business earnings are often paid through the individual income tax when 'passed-through' to business owners. The business income from sole proprietorships, farm proprietorships, partnerships, S corporations, etc., is all taxed at the owners' individual income tax rates. This year 34 million business owners are expected to receive this type of income and pay tax on this income through the individual income tax. These businesses are typically small and often entrepreneurial in nature, and a source of innovation and risk-taking in the economy. Moreover, these business owners are frequently subject to the highest individual income tax rates." ("Topics Related To The President's Tax Relief," U.S. Department Of Treasu ry, http://www.ustreas.gov/press/releases/reports/president_taxrelief_topics_0508.pdf, May 2008)

Barack Obama Told A Texas Newspaper: "What We Ought To Tax Is Dirty Energy, Like Coal And, To A Lesser Extent, Natural Gas." ("Q&A With Sen. Barack Obama," San Antonio Express-News, 2/19/08)

Coal Is The Largest Source Of Electricity In America, Accounting For Nearly 49 Percent Of U.S. Total Net Generation In 2006. (Energy Information Administration Website, www.eia.doe.gov, Accessed 6/9/08)

Natural Gas Is The Second Largest Source Of Electricity In America, Accounting For 20 Percent Of U.S. Total Net Generation In 2006. (Energy Information Administration Website, www.eia.doe.gov, Accessed 6/9/08)

Barack Obama Is Proposing A Windfall Profits Tax On Oil Companies That Could Raise Taxes By $15 Billion A Year. "Democratic presidential candidate Barack Obama's proposal for a windfall profits tax on oil companies could cost $15 billion a year at last year's profit levels, a campaign adviser said." (Daniel Whitten, "Obama May Levy $15 Billion Tax On Oil Company Profit," Bloomberg News, 5/1/08)

Los Angeles Times Editorial: Funding Rebate Checks By Taxing Oil Companies "Could Ultimately Cause Oil Prices To Rise Even Further." "He also wants to send working families a $1,000 'energy rebate' funded by new taxes on oil companies, a move that would slow the oil giants' investments in research, exploration and recovery and thus could ultimately cause oil prices to rise even further." (Editorial, "Obama's Energy Boost," Los Angeles Times, 8/5/08)

USA Today Editorial: Barack Obama's Plans To Tax Oil Companies "Plays Well On Te Stump, But It Would Only Reduce The Companies' Resources For Expanded Drilling And Exploration." "Unfortunately, in his energy speech in Lansing, Obama undercut his grudging acceptance of offshore drilling by calling for a windfall profits tax on oil companies to finance $1,000 energy rebates for families. That plays well on the stump, but it would only reduce the companies' resources for expanded drilling and exploration." (Editorial, "Our View On Energy Policy: Obama Joins McCain In Offshore Drilling Reversal," USA Today, 8/5/08)

The Non-Partisan Congressional Research Service Found That The Windfall Profits Tax In The Past Reduced Domestic Oil Production And Increased Our Dependence On Foreign Oil By As Much As 13 Percent. "From 1980 to 1988, the WPT may have reduced domestic oil production anywhere from 1.2% to 8.0% (320 to 1,269 million barrels). Dependence on imported oil grew from between 3% and 13%." (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications For Current Energy Policy," Congressional Research Service, 3/9/06)

The Tax Reduced Domestic Oil Supply And Increased Demand For Imported Oil. "The WPT had the effect of reducing the domestic supply of crude oil below what the supply would have been without the tax. This increased the demand for imported oil and made the United States more dependent upon foreign oil as compared with dependence without a WPT." (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications For Current Energy Policy," Congressional Research Service, 3/9/06)

The Wall Street Journal: The Windfall Profits Tax Reduced Domestic Oil Production And Increased Prices At The Pump."The last time Congress imposed a form of the windfall tax was the final gloomy days of Jimmy Carter, and the result was: a substantial reduction in domestic oil production (about 5%), thus raising the price of gas at the pump; and a 10% increase in U.S. reliance on foreign oil. A windfall profits tax is the ultimate act of economic masochism because it taxes only domestic production, while imports and foreign oil subsidiaries bear almost none of the cost." (Editorial, "Windfall Accounting Tax," The Wall Street Journal, 11/30/05)

Heritage's Ben Lieberman: The Windfall Profits Tax Ended Up Harming Consumers With Increased Energy Prices. "The track record for punitive measures like the windfall profits tax shows that they usually harm consumers along with the targeted industry. In the end, the tax hurt consumers more through higher energy prices than it helped them through higher tax revenues, which turned out to be far lower than originally predicted because the tax discouraged production." (Ben Lieberman, "Raising Taxes On Oil Companies Is No Way To Reduce Gas Prices," www.heritage.org, 3/1/06)

Barack Obama Would Raise Capital Gains And Dividend Taxes. "Sen. Obamawants to raise the long-term capital-gains rate for families making more than $250,000 to around 20 percent or somewhat higher but not above the 28 percent level it reached during the Reagan presidency, an Obama economic adviser says. The same rate would apply to most dividend income for these investors." (Tom Herman, "Tax Report Your Tax Bill: How McCain, ObamaDiffer," The Associated Press, 6/18/08)

In 2006, Over 26.7 Million U.S. Taxpayers Reported Capital Gains Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2006," www.irs.gov, Accessed 7/30/08)

In 2006, Over 31.5 Million U.S. Taxpayers Reported Dividend Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2006," www.irs.gov, Accessed 7/30/08)

Tax Policy Center: Barack Obama Would Raise Taxes On One Out Of Every Three Senior Households. "Even though Senator Obama's plan eliminates individual income taxes for seniors with incomes less than $50,000, his plan would raise taxes for almost 10 million senior households, over a third of the total (not shown in table). On average, seniors would face a tax increase of about 2 percent of income." (Burman et al., "A Preliminary Analysis of the 2008 Presidential Candidates' Tax Plans," The Tax Policy Center, 6/11/08)

Tax Foundation: Seniors "Rely Most On The Stable Flow Of Income That Dividends Provide." "Most debate over whether to extend the reduced rates on dividends and capital gains has focused on the tax benefits of these cuts to high-income taxpayers. What has been largely ignored is the impact these tax policies have on corporations' decisions on how best to distribute their income to shareholdersincluding senior citizens, who rely most on the stable flow of income that dividends provide. A recent Tax Foundation analysis illustrated that a large number of those benefiting from dividends are seniors and those on the verge of retirement (See www.taxfoundation.org). A further analysis of these seniors earning dividends reveals that lower-income seniors who file tax returns depend more heavily on dividend i ncome than high-income seniors." (Gerald Prante, "The Importance Of Dividend Income For Low-Income Seniors," Tax Foundation, http://www.taxfoundation.org/news/show/1354.html, 2/8/06)

ANNCR: The Las Vegas Review-Journal calls Obama's ideas "a recipe for economic disaster".

The Las Vegas Review-Journal Calls Barack Obama's Tax Proposals "A Recipe For Economic Disaster." "[Obama] wants to the raise tax rate on the top income bracket from 35 percent to 39.6 percent, nearly double the tax rate on capital gains and dividends, and eliminate all tax breaks for the gas and oil industries and private equity firm managers. Talk about a recipe for economic disaster." (Editorial, "More Class Warfare," Las Vegas Review-Journal, 9/20/07)

ANNCR: The Washington Post says Obama's policies are "poorly crafted" and will result in "higher prices at the pump."

The Washington Post Said Barack Obama's $80 Billion Tax Proposal Is "Poorly Crafted, Lavishing Tax Goodies Where They're Not Needed." "Democratic presidential candidate Barack Obama proposed $80 billion or so in tax cuts for middle-class taxpayers. These are the sort of have-a-cookie proposals that sound great to voters, especially Democratic primary voters, so they might be smart politics. That doesn't make them smart policy. Even if it made sense to spend all this revenue to shift tax burdens rather than deal with other problems, the Illinois senator's proposals are poorly crafted, lavishing tax goodies where they're not needed. Mr. Obama says he wants to help families squeezed by stagnant wages, but this is an awfully expensive Band-Aid." (Editorial, "Mr. Obama's Cookie Jar," The Washington Post, 9/25/07)

The Washington Post: Barack Obama's Tax On Oil Companies Will Only Lead To "Higher Prices At The Pump." "But to add a five-year tax increase on top of that to pay for a one-year gift to voters would, indeed, increase the cost of doing business. That cost would be passed along in forgone investment in new production, lower dividends for pension funds and other shareholders, and higher prices at the pump -- thus socking it to the consumers whom the plan is supposed to help. If oil prices fall, there might be no windfall profits to tax. Then the Obama rebate would have to be paid for through spending cuts, taxes on something else or borrowing." (Editorial, "Tapping Tired Wells," The Washington Post, 8/6/08)

ANNCR: And The Wall Street Journal reports Obama's plans will "stunt small business" and threaten "America's economic competitiveness." More taxes. Higher gas prices. A recipe for economic disaster.

That's the real Obama. JOHN MCCAIN: I'm John McCain and I approved this message. ANNCR: Paid for by John McCain 2008.

The Wall Street Journal Said Barack Obama's Plan To Raise The Top Income Tax Rates Would "Stunt Small Business." "The clear implication is that raising the U.S. personal income tax rates would also stunt small business entrepreneurship. Yet this is precisely what all of the Democratic Presidential candidates, and even Mr. Rangel, propose." (Editorial, "Corporate Tax War," The Wall Street Journal, 12/4/07)

The Wall Street Journal: Our High Business Tax Rates Compared To Those Of Many Other Nations "Pose A Threat To America's Economic Competitiveness." "What American CEOs understand, but most in the media and political class so far refuse to acknowledge, is that the U.S. is far behind the rest of the world in reducing corporate tax rates. The U.S. corporate income tax rate is the world's second highest after Japan's among developed nations. In recent years, Germany, France, the United Kingdom, Vietnam, Poland and Singapore, among many other nations, have either cut or proposed to cut their business tax rates. These lower rates are attracting more investment and capital, and they pose a threat to America's economic competitiveness if Washington fails to act." (Editorial, "Corporate Tax War," The Wall Street Journal, 12/4/07)