Fact Check: Obama Ad Blasts Romney's Tax Plan - 8 News NOW

Fact Check: Obama Ad Blasts Romney's Tax Plan

Claim: An advertisement endorsed by the campaign for President Barack Obama that is airing on KLAS-TV Channel 8 states: "The choice on taxes. Mitt Romney's plan: A 25 percent tax cut for millionaires, tax breaks for oil companies and corporations that ship jobs overseas but a tax hike for 18 million working families."

Verdict: Partially true and partially misleading. Republican presidential candidate Romney is advocating across-the-board 20 percent cuts in marginal federal income tax rates as part of a comprehensive package of lower taxes. But an analysis of his tax plan by the Tax Policy Center, a collaboration of the Urban Institute and Brookings Institution think tanks, found that individuals with incomes of at least $1 million would average $250,535 in federal tax cuts under one scenario and $390,876 under a second option. That means someone who earns $1 million could see tax reductions as high as 25 to 39 percent. Politifact.com, referenced in the ad, also reported that 18 million filers could see their taxes go up because Romney hasn't said he would extend certain tax cuts that were part of the economic stimulus package signed by Democrat Obama in 2009. These included increases in the American Opportunity Tax Credit for education, the Earned Income Tax Credit for low-income working families and the Child Tax Credit to offset the cost of raising a child. Where the ad misleads viewers is that Romney isn't proposing business tax breaks only for oil companies and corporations that ship jobs abroad. He favors cutting all corporate taxes from 35 percent to 25 percent, repealing the corporate Alternative Minimum Tax and making permanent the tax credit for research and development.