McCain Proposes $52.5B Economic Plan

Republican Calls For Eliminating Taxes On Unemployment Checks, Lowering Taxes On Retirement Accounts And Capital Gains

(CBS/ AP)  Republican presidential candidate John McCain on Tuesday proposed a $52.5 billion economic plan that would eliminate taxes on unemployment benefits and cut the capital gains tax while warning voters about taking a chance on Democratic rival Barack Obama.

"Perhaps never before in history have the American people been asked to risk so much based on so little," McCain told a suburban Philadelphia audience about his opponent.

McCain also promised that as president he would order the Treasury Department to guarantee 100 percent of all savings for six months.

The Arizona senator, who trails in the polls on economic issues, said, "The moment requires that government act. And as president I intend to act, quickly and decisively."

McCain said President Bush's $250 billion plan to buy shares in the nation's leading banks should be short-term and last only until the institutions are reformed and put on a sound footing again.

"When that is accomplished," McCain said, "government will relinquish its interest in these private companies. We're going to get the government out of the business of bailouts and equity stakes and back in the business of responsible regulation."

"Like the proposals offered by Obama yesterday, these are designed to help ease some of the economic pain being felt by various groups," said CBSNews.com senior political editor Vaughn Ververs. "The problem for McCain is that voters increasingly see Obama as better able to deal with the overall economic situation and piecemeal proposals aren’t likely to do anything to alter those perceptions. He has one more chance to make his case in tomorrow night’s final presidential debate."

More than 3.6 million Americans received unemployment benefits, according to the McCain campaign. If the government eliminated taxes on unemployment benefits, recipients would see an increase on average of nearly 10 percent, the campaign said.

McCain also called for cutting the tax rate on capital gains in half, down to 7.5 percent for two years. "This vital measure will promote buying, raise asset values, help companies and shore up the pension plans for workers and retirees," he said.

McCain proposed lowering the tax rate on Individual Retirement Accounts and 401(k) plans to the lowest rate, 10 percent, on the first $50,000 withdrawn. The McCain campaign estimated it would affect 9 million people over the age of 60.

"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," Obama campaign spokesman Bill Burton responded. "His trickle-down, ideological recipes won't strengthen our economy and grow our middle-class." Burton added that the McCain plan provides "no tax relief at all to 101 million hardworking families, including 97 percent of senior citizens, and it does nothing to cut taxes for small businesses or give them access to credit."

Obama's economic plan announced Monday called for suspending the tax on unemployment benefits as well as extending benefits. The Democrat also proposed allowing people to withdraw up to $10,000 from their retirement accounts without any penalty this year and next, a 90-day moratorium on home foreclosures at some banks, and a two-year tax break for businesses that create new jobs.

McCain kept up a drumbeat of criticism for Obama's economic plans, particularly his promise to cut taxes for everyone making less than $200,000 a year.

Obama "now presents himself as a tax cutter and champion of middle-class America," McCain said, "But he can't turn a record of supporting higher taxes into a credible promise to cut taxes. What he promises today is the opposite of what he has done his entire career."

The two candidates unveiled their plans ahead of Wednesday's third and final presidential debate and with just three weeks to Election Day.

McCain's proposal comes as Republican campaign veterans say he needs to do more than just criticize Obama in an economic environment that favors Democrats. Recent polling shows Obama with an edge on which candidate can do a better job handling the economy.

Obama leads in pre-election polls in enough states to be within reach of the 270 Electoral College votes needed for victory while McCain is being forced to defend Republican turf where polls show the race close. That's partly because of Obama's well-funded onslaught of TV ads and extensive network of field troops registering and canvassing voters; McCain trails on both fronts.

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[DCropp]

Dow was up more than 1% before McCain''s speech, now it''s dropping like a rock.

[oscarez]

Knock Knock, John it''s over. Go home, enjoy you retirement. Take the old lady to Prais France. Help her spend some of her $100 million. You did your best.

[misha128-2009]

John, I hate to inform you that your party is blocking unemployment checks for many long term unemployed and your friends in the financial community has decimated the retirement savings of the middle class. Please explain how your tax cuts help anyone but your rich buddies as they further plunder the markets.

[satch1942]

McCain waits.. See what Obama does... Then copies most of it saying his proposals are best.. Get a life John... You are behind the times... I am 65.. I see we need the change from Senators & Reps. who have been in Washington too long.. Where were your ideas the past 26 yrs..

[teacher1917]

So, now the fall in the Stock Market is John McCain''s fault? OK, I''ll accept that. When is he going to dump Palin and pull an "October Surprise"?

[Gary Kempf]

John, John, John, Looking at the photo above. You look like a deer about to be nailed by the eighteen wheeler. Or like your doctor is about to check your prostate minus the lubricant.

It is over, you have lied and screwed the working class for over 26 years. the *** has caught up to you....

[LFforMcCain]

OMG! This is huge! McCain is definitely going to win in November with this radical new plan. I work in a CPA firm & people are so excited by this plan it''s insane! Too bad CBS is so in the tank for Obama that they''re not reporting all the Pros in McCains plan. HOpefully people will switch over to a REAL news station & get all the goodies in this plan. There''s something for everyone!

[albertw40]

McCain''s economic plan is too little, too late. The problem is that it doesn''t change his fundamental philosophy. He still offers a health plan which puts all the money in the pockets of the insurers, taxes premiums, does away with employer health benefits, puts the health rebates directly to the insurance companies, and does nothing to keep insurance companies from raising premiums or deductibles, from excluding you because of pre-existing conditions, or from cherry picking, choosing the most healthy to insure. (Remember the donut hole drug plan? This is the donut hole health plan.) The same is true with McCain''s other policies. He would extend the Bush tax cuts to the rich. He would give huge tax cuts to the corporations including rich oil companies, and even the plan outlined above does nothing to create jobs, keep companies from moving their operations overseas and still receiving tax cuts, or to keep foreign companies from buying and gutting American companies. The great need of this nation is good, well-paying jobs, reasonable health care, pensions which can''t be raided by greedy CEOs, and the ability to save to buy homes and pay for retirement. The GOP, including McCain, has built their government around CEOs who temporarily increase profits by laying off hundreds of thousands of people. Then they take golden parachutes of tens or hundreds of millions of dollars. All that needs to end. McCain''s plan is too little too late.

[miles1967-2009]

To read about the REAL John McCain, check out this link:

http://www.rollingstone.com/news/coverstory/make_believe_maverick_the_real_john_mccain

To read about the REAL Sarah Palin, check out this link:

http://www.rollingstone.com/politics/story/23318320/mad_dog_palin

[timetrips1]

Sorry John,

I respect you as a person and had hoped to be able to vote for you evan though I have refused to vote for a republican since 2004. I just don''t believe anymore that republicans stand for anything but being holier-than-though and lining the pockets of the rich. I doubt the Democrats are going to do any better but after 12 years of failed republican policies it time for a change. I was undecided until today but now I know, I''m voting a straight democratic ticket no matter who the Democrat is. I hope this year is a tidal wave and cleans out all sitting republicans in the house. Maybe it would be a wake up call for Democrats to clean up their act and work toward the good of the country and not just special interest groups.

[craigh9]

Once again, as a tried and true Republican, he tries to plug holes versus having a coordinated plan of how to improve the econmy. And in true Republican fashion - targets special groups versus the middle class that are the ones that need help in order to get out of this mess.
Stick to thoughts about your own retirement - that will be your sole focus in 2009

[checkthepast]

I hope this year is a tidal wave and cleans out all sitting REPUBLICANS in the house. Maybe it would be a wake up call for DEMOCRATS to clean up their act and work toward the good of the country and not just special interest groups.

Posted by timetrips1

WOW! Can''t decide who to dis, or what?

Roses are red, violets are blue.
I''m schizophrenic, and so am I.

[cbshoveit2]

WHERE IS ALL OF THIS MONEY COMING FROM? I GUESS WE CAN ALWAYS PRINT MORE LIKE THOSE THIRD WORLD COUNTRIES THAT HAVE INFLATION RATES OF 300 PERCENT. MONEY DOWN A HOLE

[LTSTUDIOS]

Well, HERE WE GO AGAIN with another in McCain''s "PLAN A DAY" that looks good on the surface until you get into the details or sit back and do a little old fashion "THINKING" which most Republicans seem to forget how to do. Look folks, your savings are ALREADY INSURED up to $100,000 through the FIDC and under the so-called recovery plan passed by congress your savings are now insured through the FDIC up to $250,000! Therefore, this idea of McCain''s is once again designed for the very wealthy 1% of the riches people here in the United States. In short, McCain''s plan benefits the filthy rich and since it would cover ALL SAVINGS REGARDLESS OF AMOUNT for 6 months, but not really do anything for smaller accounts since there are already covered by the FDIC. Please don''t be fooled again!!

[luvcomments]

And McCain is proposing a lowering of taxes because? Does he really assume we will think he actually cares about people - you know, the great unwashed beneath him and his self-serving kind? What a sham he is. Just goes to demonstrate he will go against even everything he believes in just to try to further his own personal ambitions. Ego personified.

[DCropp]

Why does Senator McCain continue to take money from responsible Americans?

McCain''s reducing the capital gains for the next two years. In this market, the only ones making money were the greedy insiders. Now, McCain wants to lower taxes for these corrupt insiders. Remember Enron, while the stock tank, insiders made millions. Now, McCain''s giving more of our money to them.

[suzyku]

mccain has absolutely NO credibility whatsoever! Even if I believed this was a good plan, which I don''t, I wouldn''t trust him to implement it! He has flip flopped so much that I don''t think he knows what he''s talking about and his advisers are the big money, DEregulation guys that helped to get us into this mess in the first place! NO THANKS MCCAIN!

[joker1944-2009]

This is CLASSIC!

BASH: Now, whether or not, since I know you''ve heard this during your rallies, since you have been talking about Ayers -- and your running mate has, also -- we''ve heard people in the crowd screaming things like "Terrorist!," "Traitor!," when you talked about Senator Obama -- and worse. When you hear that do you...

MCCAIN: I''ve heard the same thing, unfortunately, at Senator Obama''s rallies being said about me.
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Johnny, Johnny, Johnny. Why must you lie like this? Are you determined not only to LOSE this election, but to jetison whatever dignity and honesty you might have had left?

Please. At least Bob Dole lost graciously and - apart from literally falling on his face once - was able to maintain a sense of respectability for the office he was running for. You''re just an embarassment for both sides now.

[cutetinia]

Is he gonna suspend his campaign to push this one too? haha

[misha128-2009]

More tax breaks for the rich and an illusion of tax breaks for the remainder of the people. JUST MORE OF THE SAME. Just like his mortgage buy back program that protects CxO salaries and golden parachutes and dumps all losses onto the taxpayers in a manner guaranteed never to be recoverable. JUST MORE OF THE SAME.

[usclimey]

Another thing to remember, the government doesn''t take out tax from unemployment checks and, in a lot of cases, 6 months unemployment puts you in the zero income bracket. Thus both packages do very little in this area.

[interobserv]

DO NOT count Senator McCain out! He has a reputation as a fighter who has come back from the brink many times. If Senator Obama does dismiss him, he does so at his (and the country''s) peril.
As for his plan, when is Senator McCain going to give up on the discredited ideas of Arthur Laffer and "Trickle Down" economics. Americans don''t want to eat the crumbs off the table of the wealthy. By making them wealthier, we get poorer. I don''t think Sensator McCain will ever get it. Too bad! He''s a good man!!

Obama/Biden 08!

[misha128-2009]

Is he gonna suspend his campaign to push this one too? haha

Posted by cutetinia at 01:01 PM

Satire alert
-- (necessary for some of the current Republicans)

Could he make the suspension for real this time -- about three weeks and a day should cover it nicely. Also for sure this should extend to Gov Palin her expertise in this area and other areas is an absolute necessity! -- Just like her outdated belief there is a ban on the export of Alaskan oil. You betcha.

[misha128-2009]

DO NOT count Senator McCain out! He has a reputation as a fighter who has come back from the brink many times. If Senator Obama does dismiss him, he does so at his (and the country''''s) peril.
As for his plan, when is Senator McCain going to give up on the discredited ideas of Arthur Laffer and "Trickle Down" economics. Americans don''''t want to eat the crumbs off the table of the wealthy. By making them wealthier, we get poorer. I don''''t think Sensator McCain will ever get it. Too bad! He''''s a good man!!

Obama/Biden 08!

Posted by Interobserv at 01:02 PM

SHOW UP AND VOTE.

[txlakeside]

McSame still gives the largest tax breaks to the rich (his wife) and provides little to nothing for the lower classes. very few of the lower class will have a capital gains or a 401K. Completly out of touch with America!

More of the same with little John McCain!

[gregg_7]

McCain''s ideas for the economy- CUT TAXES.

Obama ideas for the economy- INCREASES TAXES.

Since the Obambi has never had a real job apart from community organising, he has no CLUE on the economy.

[gregg_7]

Since COMMUNITY ORGANISER Obama has no idea of what a REAL JOB looks like, take pity on him, Obama has no CLUE on the economy.

[bracemic]

Obama has done nothing concrete with his economic planning. He either says nothing to look like an intelligent "thinker," or he makes generalizations that help absolutely nothing. I don''t care if McCain does not personally have the economy mastered. He''ll be surrounded by economic experts, while Obama will rely on his own "pie in the sky" visions. I''m so excited about Obama''s plan for the government to "invent" the technology to resolve our energy crisis, as he promised us at the debates. Obama is the gambler here, not McCain. If Obama''s long shots fail, our country is going to be in shambles.

[gop_will_win]

McCain''''''''s ideas for the economy- CUT TAXES.

Obama ideas for the economy- INCREASES TAXES.

Since the Obambi has never had a real job apart from community organising, he has no CLUE on the economy.

Posted by Gregg_7 at 01:19 PM : Oct 14, 2008
=========================
McCain is going to tax my employer provided healthcare. It will cost me an extra $125 a month in taxes. Hooray for McCain!

[byeneocons]

Wow, after 25 years in the Senate, McCain has a plan!
Who would have thought Gramps could pull a rabbit out the hat this late hour!! WTG Pops!

Obama served in the Illinois senate, you right wing neocon nutjob idiots. He hasn''t been dining with lobbyists for the past 25 years like McCain.

[thcarson-2009]

All of you Obama supporters fail to realize that if he raises taxes on businesses that said business will recoop that money somewhere. Now that may be in your benefits package or may be your job, but they will recoop that money. I guess when you''re unemployed from Obamas master plan you can consider that the ultimate tax break.

[gop_will_win]

McCain''''''''s ideas for the economy- CUT TAXES.

Obama ideas for the economy- INCREASES TAXES.

Since the Obambi has never had a real job apart from community organising, he has no CLUE on the economy.

Posted by Gregg_7 at 01:19 PM : Oct 14, 2008
======================
No if this ID is banned I will come up with a name that starts with GOP again.

[gregg_7]

McCain is going to tax my employer provided healthcare. It will cost me an extra $125 a month in taxes. Hooray for McCain!


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Posted by gop_will_win at 01:25 PM : Oct 14, 2008



Obama Plans to increase penalties and penalise SMALL BUSINESS OWNERS if they dont insure their employees.

YEAH fine those employers, Great way to create JOBS Obama!

[gregg_7]

''Obama served in the Illinois senate, you right wing neocon nutjob idiots''


Yeah he served all right? Obama has been busy helping CONVICTED felon RezKo is his corrupt business activities and also helping the Chicago mob. McCain atleast does not get involved with mob groups to enhance his career.

[targaray-2009]

Reporter: "Gov Charlie Crist, will you be campaigning for the Bush/McCain presidential ticket this weekend

Gov Crist: Nah, I don''t have the time, I''m going to Disney World...

[bracemic]

Senator Obama, you tell us you%u2019re ready to lead America? Why didn%u2019t you choose to lead Illinois? Do you remember the three buttons that were in front of you in the Senate? The green button for Yes, the red button for No, and the one you used one hundred and twenty nine times: the %u201CChicken Button%u201D. Why, Senator, were you so consistently afraid to take a stand? What happens when we elect a Senator who loves the Chicken Button? Please, America, let%u2019s never find out.

[khadilov]

Once again McCain proves he is an excellant follower. What ever Obama does, he is sure to follow. Except of course when it comes to slinging mud and stiring the pot of fear!

[briannorwood]

McCain proposes tax cuts on capital gains?

Earth to Grandpa...WHAT CAPITAL GAINS?

[medmom04]

''plan''??? LOL! you''ve GOT to be kidding me. I guess he needed to throw that ''middle class'' term out there quick to preserve a vote or two! and look there, there''s his drug-enduced coma of a spouse, hawking in the background! this has become the GOP circus train. where''s palin and her future son-in-law WHO IS NOT REGISTERED TO VOTE & COULD CARE LESS? these Wasillans are notorious for giving a load about national policy, aren''t they??? gets better and better.

[navyjimfl]

Billions here, Billions there.......billions for bush''s war......where is all this money coming from?

[medmom04]

Oh yeah, RIGHT! He''''s going to save money by pulling out of Iraq and put it somewhere else!

The problem is that''''s borrowed money! HE WON''''T HAVE A FREAKING DIME TO PUT ANYWHERE ELSE!!!

HE''''S A LIAR AND A HOOD, AND A COMMUNIST ON TOP OF THAT!

**************
oh point and look! a combo economist/racist tossing out nonsensical, reactionary ***! the usual for this blog......

[brianp55]

Blatant pandering motivated by desperation.

[obamaslady]

"We''re going to get the government out of the business of bailouts and equity stakes and back in the business of responsible regulation." said McCain.

Well since when has he, during the past 26 years of his Senate career, ever said, "LESS DEREGULATION"? The answer is NEVER! His core belief has been to
DE-REGULATE while he has now states he BELIEVES IN ''LESS REGULATION'', so wonder who the public considers a ''culprit and assistant'' in the financial failures we have seen recently? I guess the answer is McCain! He will NOT change his core beliefs overnight if ever, so it''s real hard to take him at his worthless word!

His words about being a "fighter" are meaningless since there really is NO FIGHT here - he really is the underdog primarily due to his pick of PALIN THE IDIOT along with his incoherent vascillation and erratic knee-jerk decisions of which we witness daily. He constantly goes on about, "I can do that, I have done this, I know how to do that, I will do that", but forgets to tell anyone ''exactly how'' he can do anything. Apparently he thinks we believe he is Superman and can leap tall buildings at a single vound. Unfortuantely that just ain''t gonna get it.

He needs to accept the fact that he is losing and go back home - whichever one of the ''seven'' he wishes and can cry in without the public seeing him!

[gregg_7]

Lets face it, Obama''s community ORGANISING days and his illinois career deserves the scrutiny.

Obama is good friend of Rezko, helped Rezko with his connections.

In turn Rezko helped Obama to get a discount on a property he cannot afford, Fitzgerald is looking in to it and there is a possibilty Obama could be charged regarding it.

[medmom04]

How can "O"bama cut taxes on anyone? He is proposing $800 billion dollars in new spending. That''''''''''''''''s $2,400.00 in new taxes for every person in America?
Posted by bellschotsch at 01:27 PM : Oct 14, 2008
****************
no, no. get informed!!! it''s easy to do!!!!!!! the drudgery of the ignorant marches on, and on, and on. how bloody SICK I am of you types!!!!!! back to your ditch with you all!!!

[bailmeout1]

Obama served in the Illinois senate, you right wing neocon nutjob idiots. He hasn''''t been dining with lobbyists for the past 25 years like McCain.
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Posted by ByeNeocons at 01:25 PM : Oct 14, 2008

Well then, he got free dinners because he has zero earmarks. when faced with the biggest bill in history - $700 Billion, the Democrats in Congress decided this was the perfect time for $150 Billion in pork? And then they leave town? And Obama is ranked as the most liberal even among them? Cmon, Republicans - Let''s show them what the Silent Majority can do.

[medmom04]

Obama''''s USED CAR SALESMAN intellect from the HOOD!

***********
right. seems you''ve studied up well and collected your facts from a sewer. are you seriously this lost? how sad that folks like this will vote next month! scary, actually. does the amount of melanin in his skin immediately make an association in your pee brain to the ''hood''? perhaps this is one candidate who''s actually tried to address issues concerning the lower socioeconomic classes, unlike the rich whiteys you are bending over for???????? come on. you can''t be that much of a halfwit. but the racists are coming out like flies attending a poo circus.

[far_point200]

Hmmm.... Our choices for an economic saviour aren''t very good: a welfare lawyer and guy who has never had a real job.

Are write-in candidates allowed, like maybe someone who has a clue about finance and economics!

Warren Buffet for President!

[medmom04]

i''m insulting folks personally now. which means I have to go and apologize on top of it. I honestly can''t take the silly assumptions here any longer. there are more intelligent, well informed folks to debate, with a worthwhile purpose. i''m out. best to you all, hope you find your way.

[feedback3-2009]

Well at least McCain has finally decided to actually propose something of his own instead of continuing his desperate attacks. All you have to do is ask yourself a few questions: Did you have any capital gains in 2008? Are you expecting any in 2009? (McCain''s rich friends need not reply, we know who you''re voting for). Would you rather have an extra $30 bucks in your unemployment check or a job? Do you have more than $100,000 in savings that will need protecting in the next 6 months? Do you have enough (or anything) in a 401K plan so that you plan on taking out $50,000 to spend now, and what other than cat food do you plan on eating when that''s gone? An old person can be president, but a person with old ideas geared towards people who already have more than enough money and resources is useless.