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ARLINGTON, Virginia, Aug. 14 /Standard Newswire/ -- U.S. Senator John McCain's presidential campaign issued the following statement from Doug Holtz-Eakin, McCain 2008 Senior Policy Adviser, on the latest version of Barack Obama's plan for higher taxes on the American people:

"Barack Obama has voted in support of higher taxes 94 times in just 3 years, including higher taxes for Americans making just $42,000 a year. If voters consider Barack Obama's record of opposing tax cuts and his outspoken proposals to raise taxes on family savings, Social Security and small businesses -- this latest campaign promise lacks a single shred of credibility."

Background:

OBAMA SHIFTING ON WHO WOULD SEE HIGHER TAXES

Despite Claiming He'd Lower Taxes For Middle Income Americans, Obama Voted In Favor Of The Democrats' Budget - Which Would Raise Tax Rates For Americans Earning $42,000 Or More:

Obama Voted Twice In Favor Of The Democrats' FY 2009 Budget Resolution. (S. Con. Res. 70, CQ Vote #85: Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48-45: R 2-44; D 44-1; I 2-0, 6/4/08, Obama Voted Yea)

The Democrats' Budget Would Raise Taxes On Individuals Earning Approximately $42,000 Or More. "The resolution Obama voted for would not have increased taxes on any single taxpayer making less than $41,500 per year in total income, or any couple making less than $83,000. The $32,000 figure is approximately the taxable income of a single person making $41,500 per year, after all deductions and exclusions." (FactCheck.org, "The $32,000 Question," www.factcheck.org, 7/11/08)

· The Democrats' Budget Raised Tax Rates On The 25, 28, 33 And 35 Percent Brackets. For 2008, The 25 Percent Bracket Begins At The Taxable Income Level Of $32,550, Which Is The Figure After All Deductions And Exclusions Are Subtracted From Total Earnings. ("2008 Individual Income Tax Rates, Standard Deductions, Personal Exemptions, And Filing Thresholds," www.taxpolicycenter.org, 11/4/07; Andrew Taylor, "Presidential Hopefuls To Vote On Budget," The Associated Press, 3/13/08)

NOTE: Even Though Obama Voted To Raise Taxes On The 25, 28, 33 And 35 Percent Tax Brackets, Obama's Economic Advisers Claim Obama Would Only Raise Taxes On The Top Two Income Tax Brackets. "The top two income-tax brackets would return to their 1990s levels of 36% and 39.6% (including the exemption and deduction phase-outs). All other brackets would remain as they are today." (Jason Furman and Austan Goolsbee, Op-Ed, "The Obama Tax Plan," The Wall Street Journal, 8/14/08)

Obama Shifting On Who Would See Higher Taxes: From The Top 1 Percent To The Top 5 Percent Of Earners, To Individuals Earning Over $97,500, To Individuals Earning Over $200,000, To Couples Earning Over $250,000:

August 2008: Obama's Economic Advisers Finally Acknowledge That Individuals Would See Higher Taxes At $200,000, Not $250,000. "Sen. Obama believes that one of the principal problems facing the economy today is the lack of discretionary income for middle-class wage earners. That's why his plan would not raise any taxes on couples making less than $250,000 a year, nor on any single person with income under $200,000 -- not income taxes, capital gains taxes, dividend or payroll taxes." (Jason Furman and Austan Goolsbee, Op-Ed, "The Obama Tax Plan," The Wall Street Journal, 8/14/08)

June 2008: Obama Said He Would Raise Taxes On Families Earning $250,000 A Year Or More. Obama: "If you are a family making less than $250,000, my plan will not raise your taxes - not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes." (Sen. Barack Obama, Remarks On Taxes, Kaukauna, WI, 6/12/08)

June 2008: Obama Said He Would Raise Taxes On The Top 5 Percent Of Earners. Obama: "It is true that those like myself who are in the top 5 percent, we're going to see a tax increase. I'm going to roll the Bush tax cuts back to the levels they were in the 1990s." (Fox Business' "Fox Business," 6/26/08)

· In 2005, The Cut Off For The Top 5 Percent Of Earners Began At $145,283 - Well Below Obama's $200,000 Threshold. "Including all tax returns that had a positive AGI, those taxpayers with an AGI of $145,283 or more in 2005 constituted the nation's top 5 percent of earners." (Gerald Prante, "Summary Of Latest Federal Individual Income Tax Data," www.taxfoundation.org, 10/5/07)

February 2008: Obama Said He Would Raise Taxes On The Top 2 Percent Of Earners. Obama: "I have paid for every element of this economic agenda. By ending a war that's costing us billions, by closing tax loopholes for corporations, by putting a price on carbon pollution, and by ending George Bush's tax cuts for the wealthiest 2 percent of Americans." (Sen. Barack Obama, Remarks On Economic Prosperity, Janesville, WI, 2/13/08)

October 2007: Obama Said He Would Raise Taxes On The Top 1 Percent Of Earners. Obama: "So I put forward a very specific plan. ... Those kinds of progressive tax steps, while closing loopholes and rolling back the Bush tax cuts to the top 1 percent, simply restores some fairness and a sense that we're all in this together, as opposed to each of us being in it on our own." (Sen. Barack Obama, MSNBC Democrat Presidential Candidates Debate, Philadelphia, PA, 10/30/07)

· In 2005, The Cut Off For The Top 1 Percent Of Earners Began At $364,657 - Well Above Obama's Proposed $200,000. (Gerald Prante, "Summary Of Latest Federal Individual Income Tax Data," www.taxfoundation.org, 10/5/07)

September 2007: Obama Proposed Applying The Payroll Tax To All Income Over $97,500. Obama: "If we kept the payroll tax rate exactly the same but applied it to all earnings and not just the first $97,500, we could virtually eliminate the entire social security shortfall." (Sen. Barack Obama, Op-Ed, "Fixed-Income Seniors Can Expect A Tax Cut," Quad City Times [IA], 9/21/07)

HIGHER TAXES FOR MIDDLE CLASS AMERICANS ONCE IN OFFICE?

Obama's Economic Advisers Favorably Compare Clinton's 1993 Economic Plan - Which Included "The Largest Tax Increase In U.S. History" - To Obama's Tax Plan:

Furman And Goolsbee Favorably Compare Clinton's 1993 "Deficit-Reduction Plan" To Obama's Tax Plan. "Even as Barack Obama proposes fiscally responsible tax reform to strengthen our economy and restore the balance that has been lost in recent years, we hear the familiar protests and distortions from the guardians of the broken status quo. Many of these very same critics made many of these same overheated predictions in previous elections. They said President Clinton's 1993 deficit-reduction plan would wreck the economy. ... Now they are making the same claims about Sen. Obama's tax plan, which has even lower taxes than prevailed in the 1990s -- including lower taxes on middle-class families, lower taxes for capital gains, and lower taxes for dividends." (Jason Furman and Austan Goolsbee, Op-Ed, "The Obama Tax Plan," The Wall Street Journal, 8/14/08)

FLASHBACK: Clinton's 1993 Economic Plan Scrapped The Middle Class Tax Relief He Had Promised On The Campaign Trail And Instead Raised Taxes On Middle Class Americans:

"Clinton Promised Not To Raise Taxes On The Middle Class To Pay For His Social Programs. In Fact, He Repeatedly Promised A Middle-Class Tax Cut." (Cal Thomas, Op-Ed, "On Many Issues He Insists On Having It Both Ways," Chattanooga [TN] Free Press, 10/5/96)

But In August 1993, President Clinton Signed Into Law A $241 Billion Tax Hike - "The Largest Tax Increase In U.S. History." "On August 10, 1993, Pres. Clinton signed into law the largest tax increase in U.S. history... The Omnibus Budget Reconciliation Act of 1993 (OBRA93) is constructed to collect $241,000,000,000 in new taxes on personal income, corporations, and gasoline over the next five years." (Alvin Rabushka, "10 Myths About Higher Taxes," USA Today (Magazine), 5/94)

· The 1993 Legislation Hit Middle Class Americans By Raising Taxes On Social Security Benefits And Gas Taxes. "The income tax boost accounts for more than half the revenue raised by the 1993 Clinton package. Two smaller elements, accounting for about a fifth of the revenue, pinch the middle class: the gas tax and a tax boost for Social Security recipients earning more than $34,000." (Howard Kurtz, "To GOP Hopefuls, Clinton Is Target Of Opportunity," The Washington Post, 10/5/94)

OBAMA SHIFTING ON HIS SOCIAL SECURITY TAX PROPOSAL

Obama Originally Planned To Tax All Earnings To Fund Social Security - Now Plans To Exempt Earnings Between $102,000 And $250,000:

Obama Said He Wouldn't Raise Taxes On People Earning Less Than $250,000, But "Found Himself In An Apparent Contradiction" With His Plan To Apply The Payroll Tax To All Earnings. "Obama started his campaign saying his plans would not increase taxes for people earning less than $250,000. But he found himself in an apparent contradiction by saying he would tax all income to fund Social Security, not just income up to $102,000, as is now the case." (Abdon M. Pallasch, "Tax Facts: Obama Vs. McCain," Chicago Sun-Times, 6/30/08)

· So Obama Altered His Plan To Exempt Income Between $102,000 And $250,000 From The Payroll Tax. "So now, Obama's plan calls for no Social Security tax on income between $102,000 and $250,000, but all income above $250,000 would be taxed for Social Security." (Abdon M. Pallasch, "Tax Facts: Obama Vs. McCain," Chicago Sun-Times, 6/30/08)

· "Prior To [June 13, 2008], Obama Had Kept Open The Possibility That He Would Impose The 12.4 Percent Social Security Tax On Income As Low As $97,500, The Annually Adjusted Ceiling In Place In 2007." (Teddy Davis, Sunlen Miller and Gregory Wallace, "Obama Kisses Billions Goodbye," ABC News' "Political Radar" Blog, blogs.abcnews.com, 6/18/08)

Obama Had Suggested Applying The 12.4 Percent Tax On All Income To Fund Social Security, Now Plans To Apply A 4 Percent Tax Only To Income Over $250,000:

In September 2007, Obama Suggested Applying The 12.4 Percent Tax On All Earnings. "While Obama has suggested imposing the 12.4 percent tax on all income above $97,000 per year, Edwards would only impose it on those making more than $200,000 per year. Income between $97,000 and $200,000 would continue to be exempt from Social Security taxes under the Edwards proposal." (Teddy Davis, "Obama Floats Social Security Tax Hike," ABC News, abcnews.go.com, 9/22/07)

· Obama: "If We Kept The Payroll Tax Rate Exactly The Same But Applied It To All Earnings And Not Just The First $97,500, We Could Virtually Eliminate The Entire Social Security Shortfall." (Sen. Barack Obama, Op-Ed, "Fixed-Income Seniors Can Expect A Tax Cut," Quad City Times [IA], 9/21/07)

In July 2008, Obama Said The Social Security Tax He Would Impose On Income Over $250,000 Would Not Exceed 4 Percent. "Under current law, income up to $102,000 a year is taxed for Social Security. Obama would create a 'doughnut hole' by not imposing new Social Security taxes on income between $102,000 and $250,000. His aides said income exceeding $250,000 would be taxed at a rate of 2 percent to 4 percent, rather than the 6 percent tax that people pay toward Social Security on income below the $102,000 cutoff, which is matched by their employer's paying a 6 percent tax. Employers would probably pay an additional tax, but the total tax paid by both employee and employer would not exceed 4 percent of the amount of income earned over $250,000." (Perry Bacon Jr., "Candidates Diverge On How To Save Social Security," The Washington Post, 7/8/08)

OBAMA SHIFTING ON THE CAPITAL GAINS TAX

Obama Said He'd Exempt Families Earning Up To $250,000 From His Capital Gains Tax Increase, Even Though He Previously Said Raising The Tax Wouldn't Impact The "Average Person":

In June 2008, Obama Shifted And Said Families Earning Under $250,000 Would Not See Higher Taxes - Including Capital Gains Taxes - Under His Plan. Obama: "If you are a family making less than $250,000, my plan will not raise your taxes - not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes." (Sen. Barack Obama, Remarks On Taxes, Kaukauna, WI, 6/12/08)

FLASHBACK: In April 2008, Obama Said Raising The Capital Gains Tax Wouldn't Impact The "Average Person." Obama: "In terms of capital gains, I've suggested we might go back up to 20 (percent), because..." Fox News' Chris Wallace: "You had suggested 28 (percent)." Obama: "Well, what I've said is I certainly would not raise it higher than it was under Ronald Reagan, but the fact is that I'm mindful that we've got to keep our capital gains tax to a point where we can actually get more revenue. But that's not something that's going to affect the average person with a 401(k) when people start talking about how, 'Well, there are, you know, millions of Americans who own stock,' most of them own stock in 401(k)s where their taxes are deferred and they pay ordinary income taxes when they finally cash out." (Fox News' "Fox New Sunday," 4/27/08)

· In 2006, Nearly 27 Million Americans Reported Capital Gains Income. (Internal Revenue Service Website, "Individual Income And Tax Data, By State And Size Of Adjusted Gross Income, Tax Year 2006," www.irs.gov, Accessed 8/14/08)

Obama Has Shifted On How High He'd Raise The Capital Gains Tax Rate:

March 2008: Obama Told CNBC's Maria Bartiromo That He Would Raise The Capital Gains Tax As High As 28 Percent. CNBC's Maria Bartiromo: "How do you plan to change the tax code when it comes to capital gains? How high will that 15 percent rate go?" Obama: "Well, you know, I haven't given a firm number. Here's my belief, that we can't go back to some of the, you know, confiscatory rates that existed in the past that distorted sound economics. And I certainly would not go above what existed under Bill Clinton, which was the 28 percent." (CNBC's "Closing Bell," 3/27/08)

August 2008: Obama's Economic Advisers Said Obama Would Raise The Capital Gains Tax Rate To 20 Percent. "The top capital-gains rate for families making more than $250,000 would return to 20% -- the lowest rate that existed in the 1990s and the rate President Bush proposed in his 2001 tax cut." (Jason Furman and Austan Goolsbee, Op-Ed, "The Obama Tax Plan," The Wall Street Journal, 8/14/08)