McCain Unveils Economic Plan

By: John Bentley
Topics: John McCain

(CBS)

From CBS News' John Bentley:

(BLUE BELL, PA.) – Unveiling an economic plan aimed squarely at older workers who may hold the key to reversing his sliding poll numbers, John McCain said he would lower taxes on retirement accounts, reduce capital gains taxes, and eliminate taxes on unemployment benefits.

"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," McCain said. "Retirees have suffered enough and need relief, and the surest relief is to let them keep more of their own savings."

But McCain does not believe people should be allowed to make early withdrawals from their IRAs and 401k plans, and instead proposed cutting the capital gains tax in half.

"Obama yesterday offered up a proposal that would have the effect of encouraging early withdrawal of funds from 401k accounts, by suspending penalties through 2009. This is an invitation to capital flight, and therefore to continued instability in the market, at a moment when exactly the opposite is needed," McCain said. "Any family that takes part in this will not see the benefits of the market recovery that smart policy can help bring about."

But that policy would cost roughly $50 billion over two years, and McCain has not outlined a way to pay for that kind of increase. Obama's campaign said McCain's plan was targeting the wrong part of the economy.

"Sen. 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," said Obama spokesman Bill Burton. "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."

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by pwest9 October 14, 2008 10:46 PM EDT: Here''s the definition of capital gains, it will help many people, especially now:

A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

For equities, an example of a popular and liquid asset, each national or state legislation, have a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction because, among other reasons, it could be assumed that taxation is already incorporated into the stock price through the different taxes companies pay to the state, or that tax free stock market operations are useful to boost economic growth.; Reply to this comment


by mlr_08 October 14, 2008 6:23 PM EDT: I find it very hard, after all the flip-flopping on EVERYTHING out of his mouth, to believe ANYTHING that McCain proposes. I''m left thinking "Well, will he change his mind, his policy, once again after he''s in office?" I have nothing to go on but what he keeps doing NOW. He used to seem pretty stalwart, but not anymore, and I think now (unfortunately) anything I hear just seems to be nothing more than empty promises and desperate bids to win. Like he''ll say anything, do anything to be elected. If so many people who have known him for so long - of his own party, moreso - say he''s not the McCain they know, that just backs up my own impression. I feel like I can''t trust his words anymore.; Reply to this comment


by lucite53 October 14, 2008 5:31 PM EDT: This ACORN thing is such a crock. Obama''s poll numbers does not need a few extra thousand votes being drummed up by Acorn. Black Mafia?
Geraldine lost her position because of Italian mob ties. Oh Please... Enough already. What about the biggest fraud of this decade? Let''s not forget about our troops in Iraq, the war is still raging despite McCain''s "we won the war" mantra.; Reply to this comment


by Regensburger October 14, 2008 5:29 PM EDT: This morning as I listened to John McCain introduce his latest economic plan, I was struck by his characterizing it as having been created in response to a need for a "swift and bold" solution to our current economic situation. Given his behavior over the past several weeks, which has been widely regarded as erratic, I couldn''t help but wonder if what he saw as "swift and bold" wasn''t actually impulsive and reactionary--not to mention conveniently rushed in order to meet the time frame of the final debate.

The second thing that struck me was that McCain''s plan appeared to be his and his alone. There was no mention whatsoever of consultation with advisors in formulating this plan. This is in stark contrast to Obama, who has hand-selected what is widely seen as one of the most highly regarded sets of advisors in recent memory. It is in further contrast to the manner in which McCain selected his running mate, which was apparently done for electoral purposes, whereas the Biden selection was made specifically with post-election advisory capacity in mind.

Initial reactions indicate that McCain''s plan is being panned by economic experts.; Reply to this comment


by DCropp October 14, 2008 5:22 PM EDT: Cutting the capital gains tax...

Warren Buffet and Bill Gates are the biggest beneficiaries of this. Combined, they will save over $5 billion if McCain''s plan is enacted.

Why does McCain want the two richest Americans to get $5 billion of taxpayer money?

Buffet and Gates have both say they don''t need the money, so why is McCain giving them even more than Bush?; Reply to this comment


by briannorwood October 14, 2008 4:27 PM EDT: McCain talks about Obama''s "associations".

Earth to Grandpa! ALL YOUR ASSOCIATIONS ARE DEAD!; Reply to this comment


by briannorwood October 14, 2008 4:25 PM EDT: McCain says we need a "capital gains cut".

Earth to Grandpa! WHAT CAPITAL GAINS?; Reply to this comment


by misha128-2009 October 14, 2008 4:16 PM EDT: More tax breaks for the rich coupled with largely useless tax breaks for the rest of the nation. JUST MORE OF THE SAME BUSH POLICIES. To be exact the revitalization of a Bush policy that was not approved.; Reply to this comment


by misha128-2009 October 14, 2008 4:13 PM EDT: Acorn is a Republican lie.

Completed registrations regardless of the validity of the contents must be submitted in most states -- WISELY I might add to prevent improper treatment by any partisan interests and the potential for subsequent voter suppression. IN addition the HAVA act requires all new voters to be verified -- eliminating faked applications -- with verifications that include drivers license numbers or the last 4 digits of the social security number.; Reply to this comment