President Obama peppered his State of the Union address to Congress and the nation with facts, which were mostly right but sometimes cherry-picked, strained or otherwise misleading. He said “there are about 2 million Americans working right now” because of last year’s stimulus bill. But his own economic advisers say …
Issues: Taxes
Imprisoned for Not Having Health Care?
Q: Could somebody be imprisoned for not purchasing health insurance under the House health care bill?
A: Both House and Senate bills would levy a tax on persons who refuse to obtain coverage. Willfully evading that tax could result in jail time under the bill passed by the House – but not the bill approved by the Senate Finance Committee.
Clunker Claims and Cadillac Plans
The AFL-CIO is running a print ad this week arguing that "the House bill gets it right" on health care. The Senate bill? Not so much, says the labor federation.
Its beef is with the tax in the Senate Finance Committee bill on high-cost (a.k.a. "Cadillac") health care plans. Unions have come out against the tax, saying many of their middle-class members would be affected. The proposal calls for a 40 percent tax on the value of insurance benefits that exceed $21,000 a year for a family or $8,000 for an individual.
Fun with Semantics
Republican National Committee Chairman Michael Steele takes House Speaker Nancy Pelosi to task in an RNC fundraising e-mail for claiming that a tax increase isn’t a tax increase. But Steele adds some spin of his own, falsely charging that the tax in question falls on "middle class families and small businesses."
The RNC mailer accuses Pelosi of using "political doublespeak to mislead the American people" and links to a clip of a CNBC interview in which the speaker is asked whether allowing the Bush tax cuts to expire isn’t a "tax increase."
Corzine, Christie Spar Over Income Taxes
With their race coming down to the wire, the candidates in New Jersey’s gubernatorial contest are attacking each other as ferociously as ever.
A TV ad from Republican Chris Christie accuses Democratic Gov. Jon Corzine of not paying state income taxes last year. Corzine’s campaign says the claim is an "outright lie." We find it to be true in a literal sense, but its implications are false.
The Christie ad says: "Last year, millionaire Corzine paid nothing,
Cadillac Plans and the Middle Class
The liberal group Health Care for America Now is airing an ad that argues against a tax on high-cost employer-provided health care plans, a revenue-raising aspect of the Senate Finance Committee bill. "Some senators say they want to tax so-called ‘Cadillac’ health care plans, but those proposals will also tax the benefits of millions of middle class workers," the narrator says as an on-screen graphic pops up, claiming "40% tax on health care benefits of middle-class workers."
1,120 Days – and Counting – Till Election 2012!
In what could be an early preview of the 2012 campaign, Mitt Romney – a once and perhaps future Republican presidential hopeful – has released a new video on his political action committee’s Web site attacking President Barack Obama on climate change legislation.
Romney says that any cap-and-trade proposal "wouldn’t do a thing" because it would simply move "greenhouse gas emitters from America, to other nations like China and India that don’t participate in our program."
RNC Tax Attack Goes Too Far
The Republican National Committee claims in a new Web ad that Democratic health care plans propose taxes on “charities and small businesses. A doctor’s tax. Taxes on your health insurance. Even a tax on medical supplies.” It’s perfectly true, as the ad says, that “hundreds of billions” in taxes are being proposed – spread over …
“Clunkers” Credits Taxable?
Q: Will the "Cash for Clunkers" credits be taxed as income for consumers who participated in the program?
A: The act establishing the program prohibits the credit from being treated as income for federal income tax purposes. The credits, however, may be subject to a state or local income tax depending on the laws of the state or locality where the consumer resides.
Michelle’s European Vacation
Q: Did Michelle Obama and her daughters use taxpayer money to take a European vacation?
A: The first lady, her mother and her children did stay in Europe for a private vacation after the president completed an overseas trip on official business. However, no taxpayer money was used for the first family’s personal expenses.