Why Does Obama Support Economic Policies That Are Bad For Missouri?

Today In Missouri, Obama Will Hold An Economic Roundtable:

"Democratic Presidential Front-Runner Barack Obama Will Be Traveling To Cape Girardeau [MO] On Tuesday As Part Of His Effort To Reach Out To Rural Voters." (Jo Mannies, "Obama Coming To Missouri On Tuesday," St. Louis Post-Dispatch, 5/10/08)

• "Barack Obama Will Visit The General Election Battleground Of Missouri [On May 13], His First Trip Designed Specifically To Lay The Groundwork For November." (Scott Helman, "Obama To Make Maiden Trip Of Fall Campaign," The Boston Globe's "Political Intelligence" Blog, www.boston.com, 5/12/08)

• "He'll Hold An Economic Roundtable In The 72,000-Population City, Located Near What's Called Missouri's Bootheel On The Southeast Corner." (Christina Bellantoni, "Obama's First General Election Stop: Missouri, Limbaugh Country," The Washington Times' "Bellatoni On The Democrats," Blog, washingtontimes.com, 5/12/08)

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

Obama Has Proposed A Laundry List Of Tax Hikes, But Missourians 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)

Missouri Taxpayers Had To Work Until April 14 Of This Year 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, Missouri taxpayers had to work until April 14 (ranked 36th nationally) to pay their total tax bill ..." (The Tax Foundation Website, www.taxfoundation.org, Accessed 5/12/08)

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

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)

• CNBC's Maria Bartiromo: "Right now, as you know, the cap gains tax is at 15%. ... He [Obama] 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)

In 2005, The Average Capital Gains And Dividend Income Reported Per Tax Return In Missouri Was $4,837. On Average, It Accounted For 7.95 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, 515,627 Missouri Taxpayers 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 5/12/08)

• 240,329 Missouri 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 5/12/08)

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

Obama Opposes Gas Tax Relief. "Obama does not support the 'gas tax holiday' and has said the average motorist would not benefit significantly from such a suspension ..." (Sara Kugler, "Clinton Focuses On Obama's Opposition To Suspending Federal Gas Tax For Summer Driving Months," The Associated Press, 4/28/08)

As Of May 12, 2008, The Average Price For A Gallon Of Regular Unleaded Gasoline In Missouri Was Over $3.58. (AAA Website, www.fuelgaugereport.com, Accessed 5/12/08)

Obama Has Called For A Tax On Coal, But Missouri Relies On Coal To Generate Most Of Its Electricity:

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)

"Coal Is The Dominant Fuel For Electricity Production In Missouri And Typically Supplies More Than Four-Fifths Of The Electricity Market." (Energy Information Administration Website, tonto.eia.doe.gov, Accessed 5/12/08)

In 2006, Missouri Used 45,603 Thousand Short Tons Of Coal To Generate Electricity. (Energy Information Administration Website, www.eia.doe.gov, Accessed 5/12/08)

OBAMA IS WRONG FOR MISSOURI'S SMALL BUSINESSES

Small Businesses Are Vital To Missouri's Economy:

In 2006: "Missouri Had An Estimated Total Of 508,900 Small Businesses." (Small Business Administration Office Of Advocacy, "2007 Small Business Profile: Missouri," www.sba.gov, Accessed 5/12/08)

Over 97 Percent Of Missouri's Employer Firms Are Small Businesses. "Employer firms totaled 138,600 in 2006, up 1.5 percent from the previous year. Of this total, an estimated 97.9 percent, or 135,700 were small." (Small Business Administration Office Of Advocacy, "2007 Small Business Profile: Missouri," www.sba.gov, Accessed 5/12/08)

Obama's Payroll Tax Hike Would Hurt Missouri'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)

Michael Tanner Of The Cato Institute: "Small Businesses Would Be Particularly Hard Hit. In Fact, About One-Third Of The Workers Affected By Raising The Cap Would Be Small Business Owners." (Michael Tanner, "Keep The Cap," The Cato Institute, www.cato.org, 6/8/05)

"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 Missouri'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)

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)

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)

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)

OBAMA IS WRONG FOR MISSOURI ON FREE TRADE

Missouri's Economy Strongly Benefits From Free Trade As Exports Have Increased 85 Percent Since 2003:

Missouri Export Shipments Totaled $13.4 Billion In 2007, Up 85 Percent Since 2003. "Missouri's export shipments of merchandise in 2007 totaled $13.4 billion, up 85 percent from the 2003 total of $7.2 billion, which is far larger than the 61 percent growth in total U.S. merchandise exports over the 2003-2007 period. Missouri ranks 11th among the states in terms of percentage growth in exports from 2003 to 2007." ("Missouri: Exports, Jobs, And Foreign Investment," Office Of Trade And Industry Information, International Trade Administration, U.S. Department Of Commerce, www.ita.doc.gov, 4/08)

Missouri Exported To 193 Foreign Destinations, With Its Largest Markets In Canada And Mexico, Followed By South Korea. "Missouri exported to 193 foreign destinations in 2007. The state's largest market in 2007, by far, was NAFTA member Canada, which received exports of $5.0 billion, or 37 percent of the 2007 total. Canada was followed by Mexico ($1.4 billion), South Korea ($1.3 billion), China ($1.0 billion), and Japan ($659 million)." ("Missouri: Exports, Jobs, And Foreign Investment," Office Of Trade And Industry Information, International Trade Administration, U.S. Department Of Commerce, www.ita.doc.gov, 4/08)

Obama's Protectionism Is Wrong For Missouri:

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)

Last 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)