McCain Reveals Economic Plan

On Tuesday, Oct. 14, 2008, just one day after Barack Obama, Senator John McCain released his $52.5 billion economic plan aimed at easing financial distress on the nation’s workers, unemployed and elderly.

McCain strongly criticized Obama’s previously proposed policies, and stated that Obama, who has proposed tax cuts for 95 percent of American families, would actually raise taxes. McCain proposed that people ages 59 and up who withdraw money from IRAs or 401(k) retirement plans in 2008 and 2009 pay a tax rate of 10 percent on the money rather than their higher normal rates.

“Not everyone has 401(k)’s or retirement plans. It seems that McCain is only proposing to take care of the wealthier half of America. Obama is at least talking about catering to the majority; the middle and lower classes,” said New York City public school teacher, Eileen Byrne.

That part of the plan would cost $36 billion, based on the McCain campaign’s estimation. He is proposing a reduction in the tax on long-term capital gains to 7.5percent from 15 percent in 2009 and 2010 at an estimated cost of $10 billion.

McCain is also striving for speeding up the process in the tax write-off for stock losses, allowing Americans to subtract $15,000 in losses a year for the tax years 2008 and 2009, and current rules allow deductions up to $3,000 in losses. Along with that, he is pushing for a suspension on the tax on unemployment insurance benefits in 2008 and 2009, and a government guarantee on 100 percent of all savings accounts for six months.

“It sounds like it would be very beneficial. I know it’s cheaper than Obama’s plan, and I wonder where the money to fund these plans is coming from. At least McCain somewhat explained how the process of the tax deductions would work,” said ex-New York Police Officer, Patricia Mullins.