A Project of The Annenberg Public Policy Center

Obama’s Loophole Logic

The White House is claiming that the top 1 percent of all earners would pay 99 percent of the capital gains tax increase proposed by the president. But that claim rests on some debatable logic.

Impact of Capital Gains Tax on the Middle Class

Q: Would raising the capital gains tax rate hit the middle class?
A: More than 80 percent of all capital gains income went to those making more than $200,000 a year in 2006. Very few making under $50,000 would be affected by any increase in the top capital gains rate.

Taking Liberties in Philadelphia

Summary

Clinton and Obama both strained the facts at times during their debate in Philadelphia.

Clinton said "people died" in 1970s bombings by a radical group of which an Obama acquaintance was a member. In fact, the deaths were of three members of the Weather Underground itself, who died when their own bombs accidentally exploded.
Obama said, "I have never said that I don’t wear flag pins or refuse to wear flag pins." Actually,