Organizing for America

DEBATE REALITY CHECK: SPENDING

Tonight, Sarah Palin said: “An increased tax formula that Barack Obama is proposing in addition to nearly a trillion dollars in new spending that he is proposing is the backwards way of trying to grow our economy.” [Vice Presidential Debate, 10/2/08]

The Facts: Palin’s Claims About Obama’s Spending Have Been Debunked. Obama’s Plan Would Cut The Deficit Far More Than McCain’s.


FACT: ANALYSIS HAS SHOWN THAT MCCAIN’S CLAIMS ABOUT OBAMA’S SPENDING ARE “MISLEADING” AND OBAMA’S SPENDING PLANS ADD UP

Former McCain Advisor: Obama Has Proposed $990 Billion In New Spending But Also $989 Billion In Spending Cuts So The Net Cost Roughly Balances Out. Maya MacGuineas, a former McCain advisor in his 2000 campaign is now the president of the Committee for a Responsible Federal Budget. The Washington Post wrote, “The non-partisan Committee for a Responsible Federal Budget calculates that Obama has promised a total of $990 billion in new spending over his first four-year term. At the same time, he has also proposed spending cuts that amount to around $989 billion, so the net cost roughly balances out…’Obama has talked about a lot of new spending initiatives, but he has also talked about new ways to curb spending,’ said Maya MacGuineas, president of the Committee, whose detailed budget analyses are available here . ‘I give him points for holding the line.’” [Washington Post, 10/1/08 ; Committee For A Responsible Federal Budget Website ]

CNN Fact Check: The Claim That Obama Would Spend A Trillion Dollars More Is “Misleading” Because It Doesn’t Take Into Account The Savings From Other Policy Changes Obama Is Calling For. “The McCain campaign is basing this figure on its own tally of how much money all of the new programs Obama has vowed to fund would ultimately cost. The total does not look at how much money Obama would save through cutbacks in other parts of his spending plan…Verdict: Misleading. The figure McCain gave is based on his campaign's tally of the costs of numerous programs Obama has discussed, but ignores the savings from other policy changes Obama is calling for.” [CNN, 9/29/08 ]

New York Times: Obama Has Outlined How He Would Pay For His Various New Programs. “Mr. Obama and Mrs. Clinton have acknowledged that their various new programs would be costly but have outlined how to pay for them.” [New York Times, 4/27/08 ]


FACT: OBAMA’S PLAN WOULD CUT THE DEFICIT FAR MORE THAN MCCAIN’S

Obama’s Plan Would Lead To A National Debt $1.2 Trillion Smaller Than You Would See Under McCain. “According to the Tax Policy Center, over the course of a decade Obama's plan would result in a national debt $1.2 trillion smaller than you would get under McCain's plan. Less government borrowing ultimately means lower interest rates and more private investment. This positive effect may well outweigh the blow to growth and jobs from weaker work incentives.” [Washington Post, 9/8/08 ]

Analysts Say McCain’s Plan Would Increase The Deficit More Than Obama’s. “Experts say that both the McCain plan and the Obama plan would increase the deficit, and that neither man has adequately explained how his proposals would be paid for. But several analysts have said they believe that Mr. McCain’s plan would increase the deficit more, because of the size of the tax cuts he is seeking.” [New York Times, 6/11/08 ]

FACT: MCCAIN’S TAX PLAN IS FAR COSTLIER THAN OBAMA’S AND EVEN ALAN GREENSPAN SAID WE CAN’T AFFORD HIS TAX CUTS FOR THE WEALTHY AND CORPORATIONS

Alan Greenspan Said The Country Can’t Afford McCain’s Tax Cuts Without Corresponding Spending Reductions. “Former Federal Reserve Chairman Alan Greenspan said the country can't afford $3.3 trillion of tax cuts proposed by Republican presidential nominee John McCain without corresponding spending reductions. Greenspan, a lifelong Republican and longtime friend of McCain, said today on Bloomberg Television's ‘Political Capital With Al Hunt’ that ‘I'm not in favor of financing tax cuts with borrowed money.’” [Bloomberg, 9/12/08 ]

Washington Post: McCain’s Plan To Balance The Budget By 2013 “Is Not Credible.” “McCain says that President McCain would balance the federal budget by 2013. The plan is not credible. … Mr. McCain sells American voters short -- and he does himself a disservice -- with his implausible claim.” [Editorial, Washington Post, 7/14/08 ]

Washington Post: McCain’s Approach To Taxes Is Far More Costly Than Obama’s. “The country can't afford the tax cuts either man is promising, although Mr. McCain's approach is by far the more costly. We don't expect either side to admit that. But neither side should get to outright lie about its opponent's positions, either.” [Editorial, Washington Post, 8/31/08 ]