Portman whacks Obama on taxes

Former Bush administration budget chief Rob Portman took a few minutes away from campaigning Saturday to keep pressing John McCain’s argument that he’s the better man to handle taxpayers’ money than Barack Obama.

During a press conference call, Portman, a former U.S. representative from Cincinnati, said undecided voters he spoke to have a lot of concerns about Obama’s tax plans and about the economy as a whole. Portman continued the line of attack on Obama’s tax plan, saying he will raise taxes on those making less than $250,000, as interpreted from statements from Obama, Joe Biden and Bill Richardson in recent weeks.

“The point is that the tax plan seems to change on a daily, weekly basis,” Portman said, adding that Obama’s spending plan will result in higher taxes.

Portman said Obama’s plan to give refundable tax credits to some people is not a tax reduction.

“It’s hard to call it a tax cut, you just say ‘transfer,’” Portman said, adding that the effect of tax credits on the economy would be like that of the spring economic stimulus package: failure to spur growth.

Portman said tax rates are relevant to those who are not burdened by high income taxes but have seen their retirement investments in the stock market decimated recently. Specifically, McCain’s call to cut the capital-gains tax by half would encourage market investment, while Obama’s plan to raise some capital-gains rates would drive more people out of the market.

“You don’t want to put out the message that if you’re elected that you’ll raise capital gains. You want to encourage investment, in the stock market in particular,” Portman said.

Obama’s plan calls for raising capital gains taxes on those earning more than $250,000 annually from 15 to 20 percent, according to his leading economic advisers. Obama wants to eliminate capital gains taxes on start-up and small businesses.