A Project of The Annenberg Public Policy Center

Running on Fumes

Summary
Late-inning ads by both Clinton and Obama in the run-up to the Democratic primaries in Indiana and North Carolina focus on Clinton’s gas tax holiday proposal. But the ads are also misleading.

Clinton’s ad claims motorists would save $8 billion during her summer "holiday," not mentioning that no economists agree with her. She herself didn’t name one when asked in a weekend tv interview.

Obama’s ad accuses Clinton of "pandering" to voters, then ticks through the elements of his plan —

Top 1%: What They Make and Pay

Q: What percent of taxes does the top 1 percent pay and what percent of the income do they make?
A: The top 1 percent of all households got 18 percent of all personal income and paid nearly 28 percent of all federal taxes in 2005, according to the Congressional Budget Office. The top 1 percent now pay a significantly larger share of taxes than before President Bush’s tax cuts,

Gas Price Fixes That Won’t

Hillary Clinton and John McCain are offering overburdened motorists a federal “gasoline tax holiday.” But economists say that the proposal is unlikely to actually lower the price of gasoline. McCain’s plan would essentially give federal funds to oil refineries, while the net effect of Clinton’s plan probably wouldn’t be much at all, although it would create a lot of new administrative work.

McCain’s $5,000 Promise

McCain says in a new TV ad: “Let’s give every American family a $5,000 refundable tax credit” to buy health insurance. Sounds good. But McCain failed to mention how existing employer-sponsored health benefits would be affected.