McCain Proposes Gas Tax Holiday, Attacks Democratic Plans

(CBS)

John McCain jabbed at his Democratic opponents for earmark projects and supporting tax increases in his speech while laying out updates to his economic plan.

He spoke at Carnegie Mellon University in Pittsburgh this morning, unveiling more of his economic proposals and policies. He took swipes at Barack Obama and Hillary Clinton for wanting to raise taxes and supporting earmarked projects. "Among supporters of a tax increase are Senators Obama and Clinton. Both promise big change. And a trillion dollars in new taxes over the next decade would certainly fit that description," he said. "All these tax increases are the fine print under the slogan of hope: They're going to raise your taxes by thousands of dollars per year -- and they have the audacity to hope you don't mind."

"For their part, Senators Obama and Clinton have championed a long list of pork-barrel projects for their states -- like that all-important Woodstock museum that Senator Clinton expected Americans to pay for at the cost of a million dollars. That kind of careless spending of tax dollars is not change, my friends," he added.

New to his economic plan is a "gas tax holiday" over the summer, a one year freeze of discretionary spending, and a review of every government program and agency budget from top to bottom. He also pushed for a simpler tax code, emergency education loans, and reform in Medicare's prescription program asking some members to pay for their own medication.

McCain aides say he is focused on people who are waiting for their first homes, their first big break, their first shot at financial security and helping them will be his first priority. A "gas tax holiday" from Memorial Day to Labor Day gives people a break from high prices at the pump. His review of all government programs and agencies budgets is aimed to weed out ineffective programs. While the review is happening, 800 billion dollars will be saved in additional spending for that year, according to the campaign.

During his proposed year of halted discretionary spending, McCain says military and veteran's spending will be untouched. Yesterday he told reporters the cost of war has added to America's economic difficulties but said it is only one of many contributors. "I would only make two points. One, if we fail in Iraq, there will be chaos and genocide and the cost will be much higher in the sacrifice of American blood and treasure. Second, if you compare the percentage of our gross national product that we're spending on national defense today, as compared with the cold war--that percentage is smaller. But the Iraqis need to spend more on their own defense. They need to pick up a larger and larger part of the expense for American presence there," he said.

McCain wants a simpler code and he proposed an alternative today. "When this reform is enacted, all who wish to file under the current system could still do so. And everyone else could choose a vastly less complicated system with two tax rates and a generous standard deduction period," he said.
Retirees with income of $160,000 a year should pay for their own medication under Senator McCain's proposed reform of Medicare's prescription program. "People like Bill Gates and Warren Buffet don't need their prescriptions underwritten by taxpayers. Those who can afford to buy their own prescription drugs should be expected to do so. This reform alone will save billions of dollars that could be returned to taxpayers or put to better use," McCain said.

Today McCain pledged to work with every member of Congress to save Medicare and Social Security. His aides say he leaves all options on the table though McCain is a strong supporter of private accounts.