Friday, October 1, 2010

CD8 Air War: Giffords Hits Kelly on Tax Policy

Posted By on Fri, Oct 1, 2010 at 6:43 PM

Congresswoman Gabrielle Giffords has a new TV ad hitting Republican challenger Jesse Kelly for his support for a national 23 percent sales tax that would replace the income tax.

Kelly has said he supports the tax, but would prefer a 10 percent flat income tax. Last week, he said that a more likely alternative was a 10 percent income tax on individuals earning up to $50,000 and a 25 percent income tax on anything earned above $50,000, along with a 8.5 percent sales tax.

Team Giffords says:

Today, Giffords for Congress is releasing a new TV ad, “He’s not looking out for my family.”

In the ad, Southern Arizona mom Rachel McMenamin describes how Jesse Kelly's proposed 23% national sales tax on everyday items like food, gas and medicine would devastate her family.

"We’re really struggling at this point to make ends meet,” she says. “We could never afford to pay 23% more on groceries or gas."

Jesse Kelly's proposed 23% national sales tax would give a big tax break to millionaires and corporations that ship jobs overseas while raising taxes on working Southern Arizona families.

The Kelly tax on everyday items like groceries, gas and medicine would raise the overall tax burden paid by 80 percent of Arizonans by an average of more than $3,000 each year. At the same time, it would cut taxes for the wealthiest five percent of income earners by an average of more than $40,000 each year and eliminate corporate income taxes altogether.

While Kelly has recently tried to backpedal from his support of

the so-called “Fair Tax,” he endorsed the 23 percent national sales tax enthusiastically for months.

Kelly reiterated his support for this abusive tax in this week's Tucson Weekly cover story. When asked by a local senior if he supported the proposal, he is quoted as responding with a resounding, "Yes Ma'am."

Team Kelly responds:

Giffords is the one who wants to dramatically increase energy cost for families, Giffords is the one who voted to raise taxes, and Giffords increased the cost of health care. She is lying about my proposal to expand the economy and bring new jobs to Arizona. I support a low flat tax, excluding income up to the federal poverty level. We need double-digit economic growth, not the double-digit unemployment that Giffords has caused with her liberal agenda.

Giffords cut taxes as part of the stimulus package, although she favors repealing the Bush tax cuts for individuals earning more than $200,000.

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