McCain unveils economic prescription
After some apparent confusion within his own campaign on the timing, John McCain today rolled out his latest ideas to boost the faltering economy.
The proposals include eliminating taxes on unemployment benefits, lowering to 10 percent the tax rate for the first $50,000 withdrawn from retirement accounts in 2008 and 2009, accelerating the tax write-off for those forced to sell at a loss in the current market, and reducing the tax rate on long-term capital gains to 7.5 percent in 2009 and 2010.
"Over the last 21 days, we have seen once-sturdy Wall Street institutions vanish, we have seen huge swings in the market both down and up, and we have seen new federal commitments in the hundreds -- hundreds of billions of dollars. We have seen how suddenly a crisis can unfold these last several weeks, and how great the costs can be in jobs, savings, lost opportunity, and taxpayer dollars. What we need to see now is swift and bold action to lead this country in a new direction," he told a rally in Blue Bell, Pa.
"If I am elected president, I will help to create jobs for Americans in the most effective way a president can do this – with tax cuts that are directed specifically to create jobs, and protect your life savings," he added.
McCain proposed a move similar to what European countries have already done, guaranteeing all savings deposits. As part of the $700 billion bailout earlier this month, deposit insurance was raised from $100,000 to $250,000 per account.
"We must restore trust to our financial system. On my orders, the Department of the Treasury will guarantee 100 percent of all savings accounts for a period of six months," he said. "This will calm the understandable fears of widespread bank failure, while also restoring rational judgment to the choices of the market."
He also criticized Democrat Barack Obama's proposal, unveiled Monday, to allow people to withdraw up to $10,000 from their retirement accounts without any penalty this year and next.
"This is an invitation to capital flight, and therefore to continued instability in the market, at a moment when exactly the opposite is needed. Any family that takes part in this will not see the benefits of the market recovery that smart policy can help bring about."
Instead, he proposed increasing the amount of capital losses -- from $3,000 to $15,000 -- that can be deducted from income in tax years 2008 and 2009. "So much of this decline in our markets and value destruction was due to the failure of Congress and the administration to come out with a timely rescue package," he said. "Investors are always responsible for their investment decisions, but the hard-earned savings of Americans should not be penalized by the erratic behavior of politicians."
McCain also proposed cutting in half the tax rate on capital gains from stocks and other assets held for at least a year from 15 percent to 7.5 percent. "This vital measure will promote buying, raise asset values, help companies, and shore up the pension plans for workers and retirees," he said.
McCain also found time to criticize Obama's broader economic proposals and those on tax cuts as soaking the rich and redistributing wealth.
"This is the man who now presents himself as a tax cutter and champion of middle-class America," McCain said, shaking his head in disdain. "He is an eloquent speaker, but even he can't turn a record of supporting higher taxes into a credible promise to cut taxes. What he promises today is the opposite of what he has done his entire career. Perhaps never before in history have the American people been asked to risk so much based on so little."
"You can look at the record of what he's done or you can just go with your gut, but either way you're left with the same conclusion: Senator Obama is going to raise your taxes. And in this economy, raising taxes is the surest way to turn a recession into a depression."
McCain declared, "My plan for economic recovery does not require guesswork or blind faith from the American people. You know my record. You don't have to hope I will do what I promise. When I say I will cut spending, you need only look at my record to know that it's true. When I say I will defend taxpayers, you know it's true because it's what I've always done. When I say I will work across the aisle, you can see it in the results that I've delivered. And when I say I will change Washington, you know I'll do it, because for me change isn't a political slogan, it's what I've been doing my whole career."
The campaign of Obama, who issued his own proposals on Monday, is predictably unimpressed.
“John McCain's latest gambit is a day late and 101 million middle-class families short. McCain's plan would spend $300 billion to bailout the same irresponsible Wall Street banks that got us into this mess without doing anything to help jumpstart job growth for America's middle class. His plan continues to provide no tax relief at all to 101 million hardworking families, including 97 percent of senior citizens, and it does nothing to cut taxes for small businesses or give them access to credit. Senator McCain also shows how little he understands the economy by offering lower capital gains rates in a year in which people don’t have an awful lot of capital gains. His trickle-down, ideological recipes won’t strengthen our economy and grow our middle-class, but Barack Obama’s pro-jobs, pro-family economic policies will,” said Obama spokesman Bill Burton.
UPDATE: The Obama campaign tried to jump on McCain's comment that the "hard earned savings of Americans should not be penalized by the erratic behavior of politicians" to again accuse the Republican of being "erratic" -- what his supporters say is a code word for calling him too old to be president.
Obama's camp issued a memo seeking to contrast what it describes as the Democrat's "consistent, steady leadership" during the economic crisis to McCain's:
"While John McCain claims that these times require a “steady hand on the tiller,” his reaction has been anything but. The most recent example saw the McCain campaign promising the rollout of new economic plans this weekend, but by Monday opting to give a new political speech. Today, in another erratic response to the financial crisis, McCain rolled out new spending proposals while his campaign argued that he had always planned to roll out new economic plans today, a day after saying they had no plans to unveil any new economic proposals. This comes less than a week after the sloppy rollout of his new mortgage plan, which found him and his head economic adviser disagreeing, within hours, about whether new funding would be needed to implement that plan. In the past month, McCain’s response to the crisis has “careened,” sometimes changing course within the span of a single day and this past spring, he offered three different housing plans after admitting that he didn’t anticipate the housing crisis. McCain’s unsteady responses over the course of this crisis have demonstrated how out-of-touch he is with the struggles facing working Americans and how ill-equipped he is to implement the solutions and changes that we need."
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FINALLY SOMEONE WHO GETS IT.................NO TAXES ON UNEMPLOYMENT BENEFITS...... ONE OF THE STUPIDED TAXES OF ALL TIME....
If you want to see what Obama's great plan, no tax increase on 95% of americans eally means, read the October 13, 2008 Wall Street Journal article entitled "Obama's 95% Illusion". He's trying to fool everyone, as usual>
Eliminating taxes on unemployment benefits? Um, didn't Obama already propose that in his plan, yesterday?
This is a good plan that will help where we need it. I am so afraid of the potential long effects of having government involved with our financial institutions. Further, I wish the average American understood the harm Obama can do with a majority Democratic Congress acting on his redistribution of wealth agenda. I'm no scholar but I do understand the foundation for Socialism when I see it. Why can't the McCain team get this message across America?
Wow McCain... it only took you two whole weeks to come up with a coherent thought about the economic crisis. Leadership indeed.
Also, how many of us are really worried about our "capital gains" taxes? The only parts of this proposal that remotely effect your average american are already present in the Obama plan.
To those who say Obama is spending dangerously... when they estimate the deficit that that each candidate would le leave us with... McCain is spending over $2 trillion more. BuBut his 'spending is mainly just making sure the rich keep their tax cuts.
J. Honacek -
I hate to break it to you, but McCain is trying to fool you, too. The way to know if a politician is lying is if their mouth is moving.
And yes, the tax on unemployment benefits is one of the silliest things of all time. "Here, have a nice kick while you are down and out of a job".
John McCain continues to do what he does best - lie through his teeth about Obama. The bottom line is this - Obama's tax plan will result in no new taxes unless you're making a quarter million a year. It will result in his paying more taxes. McCain's plan will give McCain an additional $120,000 per year in tax breaks. Country first for McCain? Only if you're talking about his potential musical preferences.
Vincent Finn, where have you been the last 8 years? The fundamentals of the ecomony are strong, the fundamentals of the ecomony are strong, the fundamentals of the ecomony are strong...............
These would make a good pole and get it on a ballot:
Americans pay another 6% in federal tax to secure the Social Security system so it will not fail, A nation health care system for every American and more college assistance programs based on incomes.
Raise Federal gasoline tax by 50 cents/gallon to make it a user tax to pay for bridges and highways like Europe. This money can also be used by the auto industry to develope more fuel efficient vehicles. This will also eventually remove the gas guzzlers from the roads.
Crying about taxing unemployment!!
We shouldn't even have unemployment. I'm sick and tired of working while YOU sit at your house and watch TV. I've always worked when I needed money.
Here is a better economic plan. Stop being a left leaning welfare case and GET A JOB!!!
Pickandstrings: ask yourself how long you would sit in a church and listen to a preacher that said "we should hate America, America is evil, white people are evil"? This went on every sunday with the same focus being served every time.
one day
one week
one month
9 years
@Vincent Finn...
It's sort of silly to assume that because the "average American" supports Obama's plan they don't *really* understand it. It's far more likely that they do understand it pretty well and prefer it to more of the same policies that put us in the current crisis to begin with. The current preference among the public for cutting taxes for 95% of American workers vs cutting taxes on capital gains is not born out of ignorance...it's born out of the experience of having watched it happen and the knowledge that it has, in part, brought us to where we are at today.
Sure John, just like you support the vets. You voted no for them. You say you know the vets but yet you never support them in the VA Budget. You LIE!
We can almost read your lips.
Bye, Bye see you around the block. By the way how is it you can't seem to put on any kind of ralley on without your wife standing behind you? Does she carry your note cards for you?
Some guy you are that picks a VP we can't even interview. You put as much thought into her as you do the economy. Maybe we get the idea that you are just talking out the side of your mouth. No, maybe it's not a idea, it's the fact!
Thank You John, for nothing.
We've seen the Republican plan.
We're living it.
------------------------
Why would America REWARD complete Republican failure ?
We wont.
Typical McCain, wait for Obama and his team to come up with the ideas, and then ripping it off and repackaging it with some additional detail (capital gains tax cuts in a bear market - GREAT IDEA) and fronting it as his own. This man has no new ideas. Ripping off the Change platform...then adding his point on "no earmarks" to a bailout plan that had NO earmarks copying all of Obama's remaining points...and now this? He thinks we are stupid. He is counting on the folks not listening to Obama to think he came up with this. What is John McCain going to do without Barack Obama's team coming up with the ideas? Spit political poison to save the economy? This is beyond believe.
#10 The RIGHT Way, says: "We shouldn't even have unemployment. I'm sick and tired of working while YOU sit at your house and watch TV. I've always worked when I needed money. "
I have to assume you or anyone in your family has never been laid-off. Yes, there are people who definitely abuse the system, but it does work, temporarily, for those who have been through layoffs. Here's hoping you never have to experience a layoff.
To: Picks and Strings-
Read the Wall Street Journal article I referenced if you really want to know what Obama's plan will mean, instead of mimicking his talking points as all democrats do. Hopefully you do know what the Wall Street Journal is don't you.
Yup, we know what the Wall Street Journal is. A regurgitation of Republican talking points.
@ brainz ""we should hate America, America is evil, white people are evil"? This went on every sunday with the same focus being served every time."
How do you know? Were you there too?
OOOH! That's right. Rush and Hannity told you.
Soundbites played on "hate TV" do not equate to 9 years of sermons. Not that I'm saying it wasn't. But your post screams ignorance.
Let me ask people, did we inter Japanese Americans after Pearl Harbor?
Yes, we did.
Did we bomb Hiroshima? Did we have slavery? Jim Crow?
Yes, we did. Did we get involved in the first Gulf War? Did we run guns to
Afghanistan rebels to fight the Russians?
Yes, we did.
Rev. Wright was preaching as a black man, in a baptist church. He chose to preach about the intolerance and arrogance of America from his perspective. The examples he chose speak to his position, like it or not. For all we know there were an equal number of sermons on love and tolerance. To assume otherwise is just... well as I said ignorant.
Obama supporters are not stupid. They are tolerant.
Use a TRIC|KLE UP program to rescue the housing industry which will also rescue many banks and fannie and freddie. Appropriate some of the $700 billion to bail home owners who may be upside down on their mortgages. The Fed. to become a partner with those homeowners who may need to be rescued, whether they were initially qualified for their mortgage or not. I guess if we can rescue the Cheaters of Wall St. we can rescue those who may have cheated on the loan applications. Some percentage of the bail out money the home owner receives will be returned to the Fed. when the home owner of the rescued real property chooses to sell or refinance in the future. This will immediately cut the losses to banks. This will stop the flow of repossessed homes coming on the market. This will assist seniors in that their property values will level and begin ao appreciate once again. This will assist the working class struggling to make payments on a over encumbered home by reducing the loan balance and possibly their interest rate.
Here’s what it all comes down to — A story on Bloomberg says, “Oct. 14 (Bloomberg) — Barack Obama is likely to pick up 364 Electoral College votes, far surpassing the 270 needed to claim the presidency, . . . ”
Meanwhile, the National Journal says: “Barack Obama now leads the Hotline’s Electoral College projection with 361 EVs to John McCain’s 177 EVs. On Fri., Obama led 349 EVs to 180 EVs, while 9 EVs were toss-up.
Even more striking than Obama’s 184 EV overall lead is his total among solid states. The Dem nominee holds a 297-143 EV edge in states where a candidate has a statistically significant advantage. Obama crosses the 270 EV threshold necessary for election without even accounting for states he leads within the margin of error.”
The National Journal, by the way, is “the leading source of nonpartisan reporting on the current political environment and emerging policy trends”
I guess John is just going to have to be mad. In fact, I think John is mad — as in crazy mad.
"Pickandstrings: ask yourself how long you would sit in a church and listen to a preacher that said "we should hate America, America is evil, white people are evil"? This went on every sunday with the same focus being served every time."
Wow, well here's your informed electorate folks! And right here in the bastien of liberty, New England. Awesome. I'd like to see proof of all these speeches please. You must have the proof that every single sermon was like this, week after week if you're claiming it happened right? You wouldn't dare spew some bile on a blog and not have the evidence to back it up would you? Nahhhh, never.
J. Honacek- "Read the Wall Street Journal article I referenced if you really want to know what Obama's plan will mean, instead of mimicking his talking points as all democrats do. Hopefully you do know what the Wall Street Journal is don't you"
-why yes, the very institution that ripped McCain to shreds over his lack of economic knowledge just last month. And while they may be talking points, they're true. I WILL benefit more, WAY more under Obama. And I have a full time job, as does my husband. So no one here can claim superiority and tell me to get off welfare and pull my own weight. I'm already pulling and I think I've got some of your luggage in tow. I'M DONE!
We in the rest of the world just hope all the lazy americans will get out and vote for once, preferably for Obama. I don't mind McCain too much, but his team and his running mate are just plain stupid.