Tuesday, June 10, 2008

McCain & Obama: Different Ideas on How to Salvage the Economy

John McCain and Barack Obama have begun to debate what will surely be the single-largest issue of the 2008 election campaign: The US Economy. Their strikingly divergent plans and ideas are indicative of how much this Presidential election will shape the economic direction of our country for the next four years.

John McCain’s Early Economic Platform

- A health care plan that allows for affordable, portable health care - Employees could take the plan with them from job to job.
- A “simpler, a flatter, and a fair tax code” - All people would be taxed at the same rate, regardless of total income.
- Keep the ‘Capital Gains Tax’ Low – Investors would keep more of their profits and invest them back into more business ventures.
- Keep ‘Estate Taxes’ Low – When a family member passes away, a low estate tax would keep the government from taking away a substantial portion of the family’s inheritance.
- Phase Out the Alternative Minimum Tax – The AMT, which was originally meant to tax only the nation’s largest incomes, now taxes a larger proportion of the populace than originally intended. McCain says he could save middle-class families $2000 a year by depleting it.
- Keep NAFTA as is – McCain vows to not “undo the gains” of NAFTA during “a time of uncertainty” for American workers.
- Greater Government Intervention for Homeowners – McCain’s most striking economic disagreement with George W. Bush concerns his more-leftist belief that the government should take direct action against mass-scale foreclosures.

Barack Obama’s Early Economic Platform

- $50 Billion Economic Stimulus Package – This is a traditional stimulus package to keep demand high and avoid a positive feedback loop of a descending profits and subsequent job losses.
- Relief for Homeowners Facing Foreclosure – Similar to McCain’s belief that the government should step in to help struggling homeowners.
- Keep Social Security in Government Hands – Obama would require higher payments from the wealthy in order to avoid privitizing the Social Security industry.
- Expansion of Unemployment Benefits – Obama believes that in this period of economic “crisis” the unemployed must be directly assisted by the government.
- Tax Cuts for Middle-Income Families and Retirees – More middle-class money means intensified consumer demand.
- Repeal Bush's tax cuts for the wealthy – An increase in taxes here would compensate for cuts in other places.



Disappointed said...
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