Republican National Committee: Obama Uninformed on Oregon

WASHINGTON, May 9, 2008 /PRNewswire-USNewswire via COMTEX News Network/ ----Why Does Obama Support Economic Policies That Are Bad For Oregon?

The following was released today by the Republican National Committee:

Today, Obama Is Discussing Economic Issues In Oregon. "Barack Obama attends an economic discussion with workers at Vernier Software & Technology in Beaverton, Oregon." (Mark Halperin, Time's "The Page" Blog, thepage.time.com, 5/9/08)

OBAMA'S HIGH TAX PLATFORM WOULD HURT OREGONTAXPAYERS AND THE STATE'S ECONOMY

Obama Has Proposed A Laundry List Of Tax Hikes, But Oregonians Already Have A Large Enough Tax Burden:

Obama Has Called For Higher Income Taxes, Social Security Taxes, Investment 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)

Oregon Taxpayers Had To Work Until April 16 Of This Year, On Average, To Pay Off Their Total Federal, State And Local Tax Burden For 2008. "Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Oregon tax payers had to work until April 16 to pay their total tax bill, ranking it 32nd highest in the nation. (The Tax Foundation Website, www.taxfoundation.org, Accessed 5/5/08)

Obama Supports Nearly Doubling The Capital Gains Tax Rate, Which Would Mean A Tax Hike For Many Oregon Tax payers:

CNBC's Maria Bartiromo: "He [Obama] wants to raise taxes. ... Right now, as you know, the cap gains tax is at 15%. He has yet to give us a specific number, how high he wants that number to go. He has said, and he told me today, that he won't go above 28%. So we are talking about the possibility of a doubling in the capital gains tax." (CNBC's "Closing Bell," 3/27/08)

Obama Said Raising The Capital Gains Tax Wouldn't "Distort ... Economic Decision Making." Obama: "I think that we can have a capital gains rate that is higher than 15 percent. If it -- and if it, you know -- when I talk to people like Warren Buffet or others and I ask them, you know, what's -- how much of a difference is it going to be if it's 20 or 25 percent, they say, look, if it's within that range then it's not going to distort, I think, economic decision making." (CNBC's "Closing Bell," 3/27/08)

In 2005, The Average Capital Gains And Dividend Income Reported Per Tax Return In Oregon Was $4,837. On Average, It Accounted For 9.82 Percent Of Adjusted Gross Income. ("Dividends And Capital Gains Income Compared To Other Income, 2005," The Tax Foundation, taxfoundation.org, 7/16/07)

In 2005, 359,822 Oregon Reported Capital Gains Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2005," www.irs.gov, Accessed 5/9/08)

161,412 Oregon Taxpayers With Adjusted Gross Incomes Of Less Than $50,000 Reported Capital Gains.(Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2005," www.irs.gov, Accessed 5/9/08)

Obama's Opposition To The Gas Tax Holiday Ignores The Needs Of Oregon Families:

Obama Opposes Gas Tax Relief. "Earlier Monday at a community college in the Philadelphia suburbs, Obama rejected a tax holiday as bad economic policy. 'I've said I think John McCain's proposal for a three-month tax holiday is a bad idea,' Obama said, warning consumers that any price cut would be short lived before costs spike back." (Nick Timiraos, "Clinton Joins McCain On Gas-Tax Holiday," The Wall Street Journal's "Washington Wire" Blog, blogs.wsj.com, 4/21/08)

As Of May 9, 2008, The Average Price For A Gallon Of Regular Unleaded Gasoline In Oregon Was Over $3.70. (AAA Website, www.fuelgaugereport.com, Accessed 5/9/08)

Obama Has Called For A Tax On Natural Gas:

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)

Oregon Uses A Substantial Amount Of Natural Gas For Electricity And Home Heating:

Natural Gas Accounts For About One-Third Of Oregon's Electricity Generation. "Natural gas-fired plants supply around one-third of the market [Oregon's electricity generation]."(Energy Information Administration Website, tonto.eia.doe.gov, Accessed 5/8/08)

"Over One-Third Of Oregon Households Use Natural Gas As Their Primary Energy Source For Home Heating."(Energy Information Administration Website, tonto.eia.doe.gov, Accessed 5/8/08)

OBAMA IS WRONG FOR OREGON'S SMALL BUSINESSES

Small Businesses Are Vital To Oregon's Economy:

In 2006: "Oregon Had An Estimated Total Of 350,500 Small Businesses."(Small Business Administration Office Of Advocacy, "2007 Small Business Profile: Oregon," www.sba.gov, Accessed 5/9/08)

Over 97 Percent Of Oregon's Employer Firms Are Small Businesses. "Employer firms totaled 110,900 in 2006, up 3.8 percent from the previous year. Of this total, an estimated 97.8 percent, or 108,500 were small." (Small Business Administration Office Of Advocacy, "2007 Small Business Profile: Oregon," www.sba.gov, Accessed 5/9/08)

Small Firms Employed Over Half Of Oregon's Non-Farm Private Labor Force And Created 23,700 New Jobs Between 2003 And 2004."Small firms employed 56.9 percent of the state's non-farm private labor force in 2004, which was above the national average of 50.9 percent. These 86,500 firms accounted for 97.8 percent of the state's employer businesses, and they employed 771,400 people. Small businesses added a total of 23,700 net new jobs between 2003 and 2004."(Small Business Administration Office Of Advocacy, "2007 Small Business Profile: Oregon," www.sba.gov, Accessed 5/9/08)

Obama's Payroll Tax Hike Would Hurt Oregon's Small Businesses:

Obama Supports Lifting The Earnings Cap On Payroll Taxes. Obama: "I think that lifting the cap is probably going to be the best option."(Sen. Barack Obama, Democrat Presidential Candidates Debate, Hanover, NH, 9/26/07)

Eliminating The Payroll Earnings Cap Would Burden Small Business Owners Who Create Two Of Every Three New Jobs. "Lost in Obama's calculations is that many of the people who would be affected by eliminating the earnings cap are small-business owners who employ more than half the nonfarm private-sector work force and create two of every three new jobs in this country." (Editorial, "Caps Off For Obama," Investor's Business Daily, 9/25/07)

"The Self-Employed Would Be Subject To A Double Whammy, Since They Pay Both The Employee And Employer Portion Of The Payroll Tax." (Editorial, "Caps Off For Obama," Investor's Business Daily, 9/25/07)

Obama's Income Tax Hike Would Hurt Oregon's Small Businesses:

Obama Would Roll Back The Tax Cuts On Americans Earning Over $250,000. 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)

"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 ... Propose." (Editorial, "Corporate Tax War," The Wall Street Journal, 12/4/07)

At Least 55 Percent Of Small Businesses File Their Taxes As Individuals. "Small businesses and individual entrepreneurs are the driving force of rapid innovation and economic growth in this country. At least 55% of them file their taxes as individuals."(Editorial, "Caps Off For Obama," Investor's Business Daily, 9/25/07)

A Significant Percentage Of U.S. Taxpayers That Fall Into The Top Income Tax Bracket Are Small Businesses. "Overall, 28 percent of all taxpayers in the 'richest' fifth (or quintile) report business income. At even higher income levels, however, the percentage of taxpayers with business income increases. Of those taxpayers exposed to the highest individual tax rate (39.6 percent in 1999), 62 percent have business income. The nearby chart displays the distribution of business income by taxpayer group."(Scott A. Hodge, "Own A Business? You May Be Rich: Two-Thirds Of Taxpayers Hit By Highest Tax Rate Have Business Income," www.taxfoundation.org, 5/5/03)

The Joint Economic Committee Noted "A Strong Link" Between Marginal (Income) Tax Rates And Small Business Hiring And Investment Behavior. "Recent research finds a strong link between marginal tax rates and small business hiring and investment behavior." (Joint Economic Committee, "Economic Benefits Of Personal Income Tax Rate Reductions," www.house.gov, 4/01)

Obama's Health Care Plan Includes A Mandate That Amounts To A Tax On Employers, Which Would Depress Worker Wages And Force Employers To Eliminate Jobs:

"Mandates That Require Employers To Provide Health Benefits Or Pay A Percentage Of Their Payrolls As A Tax -- A Proposal Backed By Sens. Hillary Clinton And Barrack Obama -- Would Result In Lower Wages For Some Employees." (Guy Boulton, "Better Benefits Or Higher Wages?" The Milwaukee Journal Sentinel, 5/5/08)

Small Businesses Would Be Hardest Hit. "The biggest impact would be on small businesses, which are less likely to offer health benefits, and industries that employ more low-wage workers."(Guy Boulton, "Better Benefits Or Higher Wages?" The Milwaukee Journal Sentinel, 5/5/08)

Harvard Economist Amitabh Chandra Said The Employer Mandate Could "Force Employers To Eliminate Jobs, Raise Prices Or Move Jobs To Foreign Countries." "'The populist view is this will only come out of profits,' said [Amitabh] Chandra, the Harvard economist. But, ultimately, the money will come out of wages. 'And, worse, for some people, it can't come out of wages,' he said. Some low-wage jobs simply can't support the cost of health insurance, now estimated at more than $12,000 a year for family coverage. For this reason, Chandra said, a mandate would force employers to eliminate jobs, raise prices or move jobs to foreign countries."(Guy Boulton, "Better Benefits Or Higher Wages?" The Milwaukee Journal Sentinel, 5/5/08)

OBAMA IS WRONG FOR OREGONON FREE TRADE

Oregon's Economy Strongly Benefits From Free Trade As Exports Have Increased 59 Percent Since 2003:

Oregon's Exports Have Increased From $10.4 Billion In 2003 To $16.5 Billion In 2007. "Oregon's export shipments of merchandise in 2007 totaled $16.5 billion, up 59 percent from the $10.4 billion exported in 2003." (U.S. Department Of Commerce, International Trade Administration, "Benefits From The U.S.-Colombia Trade Promotion Agreement: Oregon," export.gov, 3/08)

Obama's Protectionism Is Wrong For Oregon:

Obama Pledged To Renegotiate NAFTA With The Threat Of A "Potential Opt-Out." NBC's Tim Russert: "A simple question. Will you as president say to Canada and Mexico, this [NAFTA] has not worked for us, we are out?" Obama: "I will make sure that we renegotiate in the same way that Senator Clinton talked about, and I think actually Senator Clinton's answer on this one is right. I think we should use the hammer of a potential opt-out as leverage to ensure that we actually get labor and environmental standards that are enforced." (Sen. Barack Obama, MSNBC Democrat Presidential Debate, Cleveland, OH, 2/26/08)

Obama Has Pledged Opposition To The Colombia Free Trade Agreement. Obama: "The violence against unions in Colombia would make a mockery of the very labor protections that we've insisted be included in these types of agreements." (WHTM-TV Harrisburg's "News," 4/7/08)

Obama Opposes The South Korean Free Trade Agreement. Obama spokesperson Jen Psaki "Senator Obama does not support the South Korea free trade agreement in its current form..." (Teddy Davis, "Clinton And Obama Follow Edwards On Trade," ABC News, abcnews.go.com, 4/23/07)

This Week, European Union Trade Commissioner Peter Mandelson Criticized Obama's Protectionist Stances. "Peter Mandelson, European Trade Commissioner, has said the protectionist stances taken by the US presidential candidates risk taking the world trading system back by decades." (Alan Beattie, "EU Trade Chief Hits At Democrat Hopefuls," Financial Times, 5/7/08)

Mandelson: "It is irresponsible to be pretending to people you can erect new protection, new tariff barriers around your economy in this 21st century global age and still succeed in sustaining peoples' living standards and jobs. It is a mirage and they know it." (Alan Beattie, "EU Trade Chief Hits At Democrat Hopefuls," Financial Times, 5/7/08)

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