Economic+Policy


 * __Where Obama stands on Economic Policies:__**
 * Bush tax cuts**: He endorses Bush’s 2001 and 2003 income-tax cuts for tax filers making less than $200,000 a year. (94%) New tax cuts would be financed by getting rid of Bush tax cuts for the top 1%, or letting them expire in 2010. Obama would also let Bush’s cuts on income from capital gains and dividends expire at the end of 2010. This would raise the rate from 15% to 28%
 * New tax cuts:** Obama wants to start a yearly tax credit of $500 for individuals and $1000 for married couples. This would apply to everyone who pays Social Security. He also is trying to pass legislation that would allow individuals who are 65 years or older and making less than $50,000 a year would not have to pay income tax. (His income tax plan would cost approximately $280 million over 10 years.)
 * The budget:** Has committed to a “pay-as-you-go” approach by offsetting new spending or tax cuts with new taxes or spending cuts.
 * Housing and credit crisis:** He would empower the Federal Reserve to regulate investment banks and any other institutions to which it lends. His 2007 bill would expand federal regulations of mortgage lending and toughen criminal penalties for fraud. Obama proposes a $10 billion fund to help homeowners avoid foreclosure and $10 billion to help state and local governments.
 * Workers:** Support indexing the minimum wage to inflation, extending unemployment benefits beyond the current maximum of 26 weeks, and providing unemployment insurance to part-time and temporary workers.


 * __Obama’s Record:__**
 * 2008 Economic stimulus bill**: Supported it but did not vote.
 * Stop Fraud act**: Sponsored legislation that would have expanded the federal role in regulating home-mortgage lending and increased the penalties for mortgage fraud.
 * E-government transparency on spending**: Was the lead Democrat for a bill enacted in 2006 that established USASpending.gov, a searchable database of government contractors and other recipients of federal spending.
 * Executive compensation**: Sponsored a bill giving shareholders an advisory role in setting the salaries the salaries of corporate executives.
 * Tax credits for low-income workers:** As a state legislator in Illinois led efforts to cut taxes for low-income workers.

**__Where McCain stands on Economic Policies:__**
 * Bush tax cuts:** Would make permanent the 2001 and 2003 income-tax cuts that expire at the end of 2010, including those that set the tax rate for most dividend and capital-gains income at 15 percent. McCain would preserve most of Bush’s temporary cut in estate taxes, establishing a 15 percent rate for estates worth $10 million or more.
 * New tax cuts:** Has pledged to eliminate the alternative minimum tax. McCain would double the personal exemption for dependents from $3,500 to $7,000 a move that benefits larger families. He has said he would cut the corporate income-tax rate from 35 percent to 25 percent.
 * The budget:** Wants a “pay-as-you-go” approach to budgeting but has not explained how his many tax cuts would be financed. Beyond the small savings from eliminating earmarks, McCain contends that hundreds of millions of dollars can be saved each year by eliminating “waste, fraud, and abused,” but he hasn’t provided examples. McCain’s tax cuts would cost as much as $400 billion a year, or about 40 percent of all discretionary spending.
 * Housing and credit crisis:** Supports a larger but unspecified role in the Federal Reserve in regulating financial institution but would encourage-rather than require- larger capital reserves by banks. Mc Cain opposes large increases in government spending to help renegotiate existing mortgages, and he proposes programs that would exclude people who borrowed too much to buy their homes or are currently unlikely to meet the terms of a new mortgage.
 * Workers:** Has embraced wage insurance, in which a portion of unemployment insurance premium would be used to supplement wages when an unemployed person is forced to take a lower-paying job.


 * __McCain’s Record:__**
 * 2008 Economic stimulus bill**: Voted for it.
 * Gramm-Rudman:** Was an early and instrumental supporter of the bill imposing limits on federal spending that came to dominate government in the 1980's.
 * Line-Item Veto Act of 1996:** Successfully pushed the law that for the first time gave presidents the right to veto individual spending projects. The Supreme Court found the law unconstituional in 1998.
 * Bush tax cuts:** Was one of the few Republicans to oppose Bush's tax cuts in 2001 and 2003, saying that they were irresponsible in a tim eof war. He dropped his opposition in 2004 and now supports making the tax cuts permanent.

Infromation taken from: Maggs, John. "Economy." National Journal 30 Aug. 2008 36-27.

__**How do the candidates differ in their economic rescue plans?**__ Obama and Mccain, have very different ideas on how the economy should be handled in this economic crisis. Both have put together a team. The team will put together a rescue package that both believe should boost the economy. Mccain’s team is made up of, Phil Gram, Carly Fiorina, and Douglas Holtz. Their idea is to mix populist outrage with pro-business and pro-free market ethos. Obama’s team is made up of Austin Goolsger, Laura Tyson, and Larry Summers. Their idea is to have conveying gravitas while maximizing the democrat’s economic advantage. Both candidates did oppose the early 700 billion dollar bail out plan. The bail out plan that was thought of 3 weeks later the candidates, supported as did most government officials. Both candidates have a plan to “fix” taxes. Obama’s plan will cut taxes for 95% of people. These people are people who make fewer than 250,000 dollars a year. Mccain’s plan will cut corporate taxes from 35% to 25%. He will also not raise taxes for any person. Both candidates want to pump money into the economy, and both want to stop buying oil overseas. One big issue that may be overlooked some of the time is, Iraq. The Iraq war has cost us 3 trillion dollars. All that money could have gone into the economy, paying of the national debt, buying foreclosed houses, any many other things. Mccain wants to kept troops in Iraq. This plan will cost us much more money. Obama says that he wants to pull out troops as soon as he can. This will cut any war related spending. Mccain too said that he will pull out troops eventually. Both Candidates have a plan that they both believe will rescue the economy. It is up to you to figure out which plan suits you best. Resources used: Cnn.com, Time Magazine, Both of their websites.


 * __Videos:__**

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 * Obama on Economic Policy:**

**McCain on Economic Policy:** media type="youtube" key="lxg-9qcGlHY&hl=en&fs=1" height="344" width="425"

**McCain and Palin's speech on Economic Policy:** media type="google" key="-1353925341506161309&hl=en&fs=true" width="400" height="326"

**Difference in McCain's and Bush's Economic Policy:** media type="youtube" key="kVVWySimI_w&hl=en&fs=1" height="344" width="425"

**__Articles on Economic Issues:__**

Obama [|Washington Times: Obama's Economic Plan] [|Time (CNN): What is Obama's Economic Plan] [|The Grand Rapids Press: Barack Obama addresses economic issues in Grand Rapids]

McCain [|New York Times: Tax Cuts-Center of McCain's Economic Plan] [|San Francisco Chronicle: MCains economic plan to boost middle Class] [|The Huffington Post: Obama's Economic Plan is Unworkable]

Both McCain and Obama [|Kansacity.com: As stock markets slide, McCain and Obama talk economics]

Direct links [|Obama] [|McCain]
 * __Candidates pages on Economy Plan:__**