Wednesday, October 15, 2008


2008 New York Times News Service

WASHINGTON – With Sen. John McCain unveiling a $52.5 billion package of proposals on Tuesday, both presidential candidates have now outlined their plans for addressing the economic crisis, leaving voters with a clear choice when it comes to one of the biggest challenges the next president will face.

McCain’s new plans include tax cuts on capital gains and on withdrawals from retirement accounts by people 59 and older, bigger write-offs for stock losses and a tax waiver for unemployment benefits.

If I am elected president," McCain said Tuesday in Blue Bell, Pa., "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."

Obama vows to reduce deficits, while keeping his early promises for near-universal health care coverage and more. Because oil prices have been falling, he has shelved a proposal to offset the estimated $65 billion cost of his proposed tax rebates to the middle class with a windfall-profits tax on oil companies, leaving himself an even bigger budget gap.

On retirement accounts, given the market’s drop, both candidates proposed to waive the requirement that at age 70 1/2, taxpayers had to begin withdrawing their savings.

But where McCain proposed a lower tax rate for older Americans who do withdraw money, including the wealthy, Obama would help younger savers who tap into their retirement accounts to get by in the downturn. He would waive the 10 percent tax penalty for withdrawals before age 59 1/2. Many economists object that doing so would further reduce the already low savings rate in the United States.

No comments: