Sen. John McCain unveiled a $52.5 billion economic plan today that would end taxes on unemployment benefits and cut the capital gains tax. And he took time out to warn voters that Sen. Barack Obama would raise taxes.
McCain also promised to help create jobs explaining that the most effective way a president can do this is with tax cuts that are directed specifically to create jobs, and protect your life savings. “Reducing business tax rates has the potential to stop and reverse the rise of unemployment, and could create millions of new jobs,” said McCain asserting that Obama’s plan to raise taxes would drive companies overseas.
Speaking from Blue Bell, Pennyslvania, McCain said that the country needs to raise the value of homes by directing the government to buy up bad mortgages and refinancing them. “Much stricter oversight” is the solution to prevent future bailouts, McCain says. “No more wild overleveraging, no more liabilities concealed from the public and from shareholders, no more bundling of assets to maximize profit by assuming insane risks. Those days are over on Wall Street.”
In contrast to McCain’s plan, Obama’s economic rescue plan for the middle class seeks to appeal to middle-class Americans who are struggling to pay their mortgage and other bills and who want jobs. His plan calls for a temporary tax credit for businesses that create new jobs in the U.S. over the next two years, penalty-free withdrawals from IRAs and 401(k)s in 2008 and 2009, a 90-day foreclosure moratorium for homeowners that are acting in good faith, and creation of a lending facility to address the credit crisis for states and localities. To keep jobs in America, Obama also wants to help U.S. automakers weather the financial crisis.
Additionally, Obama wants to eliminate taxes on unemployment insurance benefits.
Both Obama and McCain have proposed eliminating taxes on unemployment benefits, but each campaign had criticism for the other. McCain warned that Obama’s plan to allow penalty-free withdrawals from IRA and 401(k)s would invite “capital flight” from the markets. Instead he offered to shore up the pension plans for workers and retirees, and cut in half the capital gains tax on stocks purchased and held for more than a year from a rate of 15 to 7.5%, which he believes will help companies.
Instead of providing investors access to their retirement savings as they struggle to pay bills and other monthly necessities, McCain says it would be better to order the Department of the Treasury to guarantee 100% of all savings accounts for a period of six months. He also wants to cut the tax rate for