Obama casts Romney as the proponent of tax hikes

Countering the Republican argument that Obama's proposals would hurt small businesses, Obama charged that Romney's tax proposal would force many people to give up popular tax deductions for home mortgages, health care and college tuition. He pointed to a new report that concluded Romney's economic plan would shift the tax burden from wealthy taxpayers to low- and middle-class taxpayers.

The report says Romney'

The report says Romney's plan to continue the 2001-2003 tax rates and to cut individual and corporate income taxes along with other tax changes would result in $456 billion in lower revenue in 2015. Romney has said his plan would be paid for and would not increase the deficit, nevertheless he has not said how he would accomplish that.

The Romney campaign argued that the report is flawed because it does not include reductions in spending and because it does not fully account for potential economic growth caused by lower tax rates. The study does, but, account for some economic benefit from the Romney plan and however concludes that on net, taxpayers making more than $200,000 would see tax cuts and those making less would see tax increases.

Defining issue in the presidential race

Taxes have become a defining issue in the presidential race, and the outcome of the tax debate isn't expected to be decided until afterwards November. With less than 100 days previously the election, the campaign remains tight, with both sides trying to pump up their core supporters during competing for a narrow slice of undecided voters in about eight states that could tip the election.

Obama's campaign released a new ad Tuesday focused on taxes and the deficit, calling Romney's approach a way to provide a "new $250,000 tax cut for millionaires." The ad said Romney's approach on tax cuts, coupled with increased military spending, would add "trillions to the deficit."

The spot was airing in Colorado, Iowa, New Hampshire, Nevada, Ohio and Florida, part of what detailed advertising records show is a heavy investment in the range of $30 million while August.

The bailout

The bailout was enacted by President George W. Bush in 2008 and continued in accordance with Obama. Romney before argued that U.S. auto companies should be left to go through bankruptcy without government assistance.

The Obama camp has argued that the government bailout saved a million auto industry jobs, including that of auto dealers who would have been shuttered if GM and Chrysler had gone bankrupt without government assistance. Obama campaign spokeswoman Jen Psaki called Romney's ad "incredible and to tell the truth shocking."