The Issues: Economy

Today, I'm starting a series of pieces breaking down the two presidential candidates on the issues. With each post, I will be linking the actual candidate page on the given issue - to assure my readers that I am accurately representing the candidate's views.
I'm open to questions on any of these issues - and will gladly provide posts giving you in depth information on anything you'd like to know more about.

Our First Issue: The Economy

Taxes:

John McCain Plan

McCain has been a constant defender against pork-barrel spending. In his economic plan, he claims he'll cut taxes by $500 billion over the next 5 years - mostly by expanding the 15% tax bracket to include more people in the middle class bracket.

He is in favor of the Bush tax cuts, given primarily to the top 2% of income earners in the country.

McCain has proposed a decrease in the Corporate tax, reducing it from 35% down to 25%. He also wants to improve business incentives by giving tax breaks for businesses which purchase new equipment.

McCain also wants to freeze the tax rates on dividends and capital gains at current rates: 15% - a number scaled back since the Clinton Administration
His plan would Ban new taxes on cell phones, and ban any tax on Internet businesses.
McCain wants to double the personal exemption for dependents - from $3500 to $7K.

Finally, McCain wants to make it more difficult to raise taxes, requiring a 3/5 majority vote in the congress to pass any increase.

Barack Obama's Plan Outline, Full Plan

Obama has said what's vital to his economic plan is rolling back the Bush tax cuts that were passed for the top 2% of income earners in the country.

His plan includes a $1000 income tax credit for working families and a $500 dollar income tax credit for per person. This would affect 150 million lower/middle class workers - and essentially eliminate an income tax for 10 million low income Americans.

Obama favors lifting the cap on the capital gains tax from 15% to as high as 28% (levels during the Clinton Administration).

His job stimulus plan includes tax breaks for clean technologies, tax breaks and loan guarantees for job training and education - specifically designed for green technologies.

Obama plans to implement a Renewable Portfolio Standard (RPS) - requiring 25% of electricity be derived from renewable sources by 2025, and the hope is this will spur job growth in the renewable energy field.

He also wants to make trade fair by revisiting NAFTA and changing our trade policy to ensure American workers aren't having their jobs sent overseas.

Gas Policy

John McCain

McCain has supported a Gas Tax Holiday for the summer months when gas prices tend to sky-rocket. This would remove the 18.4 cents/gallon tax all Americans pay from Memorial Day to Labor Day. Most economists say this will have little effect on the price of gas, as it will likely be passed on to the consumer. If it doesn't, it will save Americans about a half a tank of gas during the course of the summer.

McCain supports off-shore drilling, which could possibly reduce the price of gas after a ten year period of research and excavation. He suggests using all forms of alternative energy - including nuclear - to solve our energy crisis.

McCain also supports the suspension of filling up our Strategic Petroleum Reserve. This, according to McCain, would reduce the demand for oil - lowering costs.

Barack Obama

Obama does not support s Gas Tax Holiday, but does support a "windfall profits tax" on oil companies who have carried record profits in the last several quarters. He wants to use that money to go towards alternative energy research and development as part of his economic stimulus plan.

Obama is against off-shore drilling, saying that we should focus our money and energy on renewable fuels. The reasoning is that since oil exploration would take 10 years - why not use those ten years and created a new, renewable form of energy.

Obama has also said he supports another economic stimulus payment on the heels of the spike in gas prices.


Mortgage Crisis

Both McCain and Obama support a crackdown on predatory lending and have called for plans to make it easier for homeowners to avoid foreclosure.

Both call for help form the Justice Department in ending this practice.

Obama's plan calls for a more proactive approach, requiring lenders to provide more information to lendees, and closes bankruptcy loopholes for mortgage companies.


Hope Part 1 is useful and objective... please note, the information I ma using is strictly from John McCain and Barack Obama's Websites (which there is a vast difference in the level of information on each site.... see for yourself) as well as press releases from both of the campaigns.

Please feel free to submit any questions!