Fact Check

Obama said he could "pay for every dime" of his spending and tax cut proposals "by closing corporate loopholes and tax havens." That's wrong – his proposed tax increases on upper-income individuals are key components of paying for his program, as well.
He twisted McCain's words about Afghanistan, saying, "When John McCain said we could just 'muddle through' in Afghanistan, I argued for more resources." Actually, McCain said in 2003 we "may" muddle through, and he recently also called for more troops there.
He said McCain would fail to lower taxes for 100 million Americans while his own plan would cut taxes for 95 percent of "working" families. But an independent analysis puts the number who would see no benefit from McCain's plan at 66 million and finds that Obama's plan would benefit 81 percent of all households when retirees and those without children are figured in.
Obama asked why McCain would "define middle-class as someone making under five million dollars a year"? Actually, McCain meant that comment as a joke, getting a laugh and following up by saying, "But seriously ..."
Obama noted that McCain's health care plan would "tax people's benefits" but didn't say that it also would provide up to a $5,000 tax credit for families.
He said McCain, far from being a maverick who's "broken with his party," has voted to support Bush policies 90 percent of the time. True enough, but by the same measure Obama has voted with fellow Democrats in the Senate 97 percent of the time.
Obama said "average family income" went down $2,000 under Bush, which isn't correct. An aide said he was really talking only about "working" families and not retired couples. And – math teachers, please note – he meant median (or midpoint) and not really the mean or average. Median family income actually has inched up slightly under Bush.
Analysis
Democratic presidential candidate Barack Obama accepted his party's nomination Aug. 28, speaking before more than 84,000 people in Denver's Mile High football stadium. Some of his comments were worthy of a ref's yellow flag.

Not Quite Every Dime
Obama reassured voters that he can pay for all his spending proposals:

Obama: Now, many of these plans will cost money, which is why I've laid out how I'll pay for every dime – by closing corporate loopholes and tax havens that don't help America grow.
This is misleading. Even by his own campaign's estimates, closing corporate loopholes and tax havens won't pay for all of Obama's new plans. In July, the campaign told the Los Angeles Times that they estimate the yearly cost of their proposed tax cuts at $130 billion. They put revenue from closing tax loopholes at just $80 billion. Obama also proposes to raise taxes to pre-Bush levels for families earning more than $250,000 a year and singles making more than $200,000, yielding additional revenue. But he didn't mention that in his speech.

But Obama's claim is misleading on another level. According to the nonpartisan Tax Policy Center, "without substantial cuts in government spending" Obama's plan – and McCain's, too – "would substantially increase the national debt over the next ten years." Obama spokesman Tommy Vietor told FactCheck.org that the Tax Policy Center's analysis "fails to take in account Senator Obama's spending cuts, including ending the Iraq war." That's true, but Obama's proposed cuts are dwarfed by the Tax Policy Center's projected deficits. Obama's new spending programs might be completely offset by new revenue and spending cuts. But overall spending will still exceed overall revenue, and the nation would face at least 10 more years of annual deficits.

Afghan Muddle
Obama twisted McCain's words about Afghanistan, incorrectly implying that McCain saw no need for more troops there.

Obama: When John McCain said we could just "muddle through" in Afghanistan, I argued for more resources and more troops to finish the fight against the terrorists who actually attacked us on 9/11.
Actually, McCain said in 2003 that the U.S. "may" muddle through, not that we could or would. He also said he was very concerned about a rise in al Qaeda activity there. He said then that he was "guardedly optimistic" that the government could handle it.

Health Care Half Truths
Obama gave only half the story when he described a feature of McCain's health care plan:

Obama: How else could he offer a health care plan that would actually tax people's benefits...
McCain proposes to grant families up to a $5,000 tax credit to use for health benefits. The flip side of that proposal, which McCain seldom if ever mentions, is that the value of employer-sponsored benefits would also become taxable.
Party Hearties
Obama painted McCain as a Republican partisan who's supported the unpopular President Bush consistently:

Obama: And next week, we'll also hear about those occasions when he's broken with his party as evidence that he can deliver the change that we need. But the record's clear: John McCain has voted with George Bush 90 percent of the time.
It's true that McCain's voting support for Bush policies has averaged slightly above 89 percent since Bush took office, according to Congressional Quarterly's vote studies. But it has ebbed and flowed. It reached a low of 77 percent in 2005. Last year it was 95 percent. By comparison, Obama's own record of supporting Bush policies has averaged slightly under 41 percent since the senator took office. However, Obama's voting record is no less partisan than McCain's. He has voted in line with his party an average of nearly 97 percent of the time. The truth is that neither candidate can claim a strong record of "breaking with his party" if Senate votes are the measure.

He Didn't Mean It
Obama also pulled some sleight of hand when he stated that "the average American family" saw its income "go down $2,000" under George Bush. That's not correct. Census figures show average family income went down $348.

As it turns out, when Obama said "average family income," he didn't mean "average," and he didn't mean "family," either. An Obama aide says he was really referring to median income – which is the midpoint – and not to the average. And Obama was talking only about "working families," not retired couples.

For all families, median family income actually inched up under Bush by $272.


Source: Factcheck.org