Fact Check: Obama Ad Says Romney Favors Big Banks, Wealthy - 8 News NOW

Claim: A new advertisement sponsored by the campaign to re-elect President Barack Obama that is airing on KLAS-TV Channel 8 features Democrat Obama stating: "Governor Romney's plan would cut taxes for the folks at the very top, roll back regulations on big banks and he says that if we do, our economy will grow and everyone will benefit. But you know what? We tried that top-down approach. It's what caused the mess in the first place."

Verdict: Partly true but mostly misleading. It is true that Republican presidential candidate Mitt Romney would roll back regulations on big banks, something he proposes by repealing the Dodd-Frank Wall Street Reform and Consumer Protection Act. That 2010 law, backed by Obama and congressional Democrats, was intended to increase regulations on banks and investment activities in response to the nation's economic meltdown. But Romney and fellow Republicans detest the law, saying it went too far. What is misleading is to suggest that Romney wants to cut taxes for the wealthy without also mentioning his proposal to slash income taxes by 20 percent across all marginal rates. Romney also proposes eliminating estate taxes, repealing the alternative minimum tax, and eliminating taxes for taxpayers with gross incomes below $200,000 on interest, dividends and capital gains. Some think tank analysts have suggested that when all of Romney's proposed tax cuts are added up, they would benefit the wealthy more than lower-income individuals. But that's different from leading viewers to believe that Romney favors tax cuts only for the wealthy. As for Obama's reference to "the mess," there is enough evidence to suggest that both Democrats and Republicans share responsibility and blame for the Wall Street activities that contributed to the Great Recession.