Federalists and anti-Federalist

On the Issues: Economy/Taxes

By SHAN CARTER, JONATHAN ELLIS, FARHANA HOSSAIN AND ALAN MCLEAN

Barack Obama

Democrat

U.S. Senator

John McCain

Republican

U.S. Senator

Said his plan for tax relief to middle and working classes would help stabilize the economy; repeal the Bush tax cuts for households earning more than $250,000.

Has said short-term plan is long-term plan: make the Bush tax cuts permanent; eliminate alternative minimum tax. Recently called for steps to reduce the price of gas in summer 2008.

Economic Stimulus Plan

SAID HIS PLAN FOR TAX RELIEF TO MIDDLE AND WORKING CLASSES WOULD HELP STABILIZE THE ECONOMY

He would repeal the Bush tax cuts for those earning over $250,000 and raise capital gains taxes. He would cut $80 billion in taxes through, among other things, a $1,000 per family tax credit, eliminating taxes for elderly workers making less than $50,000.

“That’s why I have proposed specific tax relief now, immediately, so that we would offset some of the payroll tax, that we would immediately put some additional dollars in the pockets of American families, working families typically making $75,000 a year or less.”

— Democratic debate, Jan. 5, 2008

TAKE STEPS TO REDUCE THE PRICE OF GAS IN SUMMER 2008

Suspend the 18.4-cent-a-gallon federal gas tax and 24.4-cent diesel tax from Memorial Day to Labor Day. Over the same period, stop filling the Strategic Petroleum Reserve.

— In Pittsburgh, April 15, 2008

PREVIOUSLY HAS SAID SHORT-TERM PLAN IS LONG-TERM PLAN

Like many Republican candidates, he previously has said his short-term plan is his long-term plan. Repeal of the alternative minimum tax and middle-class tax cuts are “the right stimulus,” he said Jan. 13. In a debate on Jan. 12, he said he would limit government spending and then seek to discourage oil imports.

“My middle-class tax cut is exactly what the sluggish U.S. economy needs. It would lower marginal tax rates, raise economic growth immediately and over the longer term and over the next five years lead to an additional $2,000 for every man, woman and child in America.”

— In Michigan, Jan. 12, 2008

Long-Term Tax Proposals

REPEAL THE BUSH TAX CUTS FOR HOUSEHOLDS EARNING MORE THAN $250,000

Cut taxes by $80 billion a year for workers, homeowners and retirees. Give credits to working families; eliminate income taxes for elderly workers making $50,000 or less. Keep estate tax. Raise capital gains taxes to as much as 28 percent.

MORE INFORMATION

Plan to Strengthen the Economy (barackobama.com)

MAKE THE BUSH TAX CUTS PERMANENT

Eliminate alternative minimum tax. Raise the personal exemption for each dependent from $3,500 to $7,000. Cut estate tax rate to 15 percent and exempt estates under $10 million. Cut the federal corporate tax rate to 25 percent from 35 percent and allow corporations to immediately deduct the costs of new equipments and technology. Establish a permanent tax credit for companies that is equal to 10 percent of wages spent on research and development. Require three-fifths vote in Congress to increase taxes. Propose an alternative tax system, while keeping the current one in place for those who want to use it, with “two tax rates and a generous standard deduction.”

Pay for cuts by eliminating earmarks, implementing “a one-year pause in discretionary spending increases, with the necessary exemption of military spending and veterans benefits,” and overhauling programs like Social Security and Medicare.

MORE INFORMATION

McCain’s Speech on the Economy, Pittsburgh, April 15, 2008

McCain Tax Cut Plan (johnmccain.com)

Obama wants to fix the problem of health care , education and the economy and John McCain just wants to help the big business and big companies. Before the Enlightenment, kings with wealth ruled, the wealthy ruled society. Like in the pre-Enlightenment, John McCain just want to help the people that are rich and the big companies. Like during the Enlightenment, Barack Obama wants to help the common man.

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