Tuesday 04 November 2008

Tax Policy is a Good Reason to Vote for John McCain

John McCain has been on the side of the middle-class for a very long time, taken from a February 2000 New York Times Article:

"MR. McCAIN'S tax-cut plan is valued at $238 billion over five years and $500 billion over 10 years. Its centerpiece is an expansion of the lowest income tax bracket, 15 percent, to cover higher incomes.

"Under the plan, the ceiling for the 15 percent bracket would rise to $70,000 from $43,050 for married couples filing jointly, and to $35,000 from $25,750 for single taxpayers. The effect would be to give a $3,504 tax cut to a couple with taxable income of $70,000 or more.

"Mr. McCain's plan would also double the child tax credit to $1,000 a year, expand tax incentives for savings and investment, reduce the tax on large estates and reduce the marriage penalty for some people by increasing the standard deduction for couples. Mr. McCain would offset a portion of the tax cuts by closing corporate tax loopholes.

"His pitch is that the plan is modest enough in size that it leaves plenty of money from the surplus tax revenues to deal with other needs. By expanding the 15 percent bracket to cover millions of additional taxpayers, he says, his plan amounts to a start on creating a system of flatter tax rates. And he argues that his plan gives much less of its benefits to the wealthy than Mr. Bush's plan does.

''I want a balanced approach,'' Mr. McCain said in the South Carolina debate. ''The difference between Governor Bush's proposal and mine is that I put a whole lot of money into Social Security, Medicare and paying down the debt. He puts a whole lot of money into tax cuts.''

"An analysis by Citizens for Tax Justice found that only 1.8 percent of the benefits of the McCain plan would go to the wealthiest 1 percent of taxpayers. Most of his proposed tax cuts would go to a broadly defined middle class: more than 52 percent to taxpayers making $65,000 to $130,000, and 21 percent to taxpayers making $39,000 to $65,000.
"Mr. McCain's plan, however, would do almost nothing for taxpayers with incomes below $39,000. Mr. Bush asserts that Mr. McCain's plan would leave too much of the surplus in Washington, where, Mr. Bush says, it would inevitably be spent not on Social Security but instead on bigger government and wasteful programs. And Mr. Bush regularly criticizes Mr. McCain's plan, contending that it would not help the working poor."

What I find really good here is that this problem they found with McCain's plan in 2000 he fixed this time around, by adding to his proposal what Bill Bradley suggested in 2000:

"As a former member of the Senate Finance Committee and one of the fathers of the 1986 overhaul of the tax code, Mr. Bradley arguably has more experience with tax policy than any of the other candidates...

"....The only specific tax cuts he backs are tax breaks on health insurance payments, an expansion of the earned-income tax credit for the working poor and an expansion of the child care credit in a way that would help low-income people."
Senator McCain also incorporated an issue from Al Gore regarding Research and Development:

"Mr. Gore has proposed allocating $250 billion to $300 billion to tax cuts over the next decade for specific goals. In particular, he supports expanded tax incentives for education and retirement savings....a permanent extension of the tax credit for corporate research and development."

The entire article is located here: http://query.nytimes.com/gst/fullpage.html?res=9404E7DC1F30F934A15751C0A9669C8B63&sec=&spon=&pagewanted=1

Additionally John McCain promises a ban on Internet taxes and Cell phone taxes, from his website:

"Ban Internet Taxes: John McCain believes we must make a farsighted, robust, and fervent commitment to innovation and new technologies to sustain our global competitiveness, meet our national security challenges, achieve less costly and more effective health care, reduce dangerous dependence on foreign sources of oil, and raise the quality of education in the United States. John McCain has been a leader in keeping the Internet free of taxes. As President, he will seek a permanent ban on taxes that threaten this engine of economic growth and prosperity.

"Ban New Cell Phone Taxes: John McCain understands that the same people that would tax e-mail will tax every text message - and even 911 calls. John McCain will prohibit new cellular telephone taxes."

The main thing missing right now is the raising of the income the lowest tax bracket, and I believe that's probably a good thing since, we have quite a bit of government debt to afford right now.

The point of this is to show that John McCain learns from his past, he does pay attention to the American People, that with all this talk of corporate lobbyists, there remains this man who only had a corporate tax benefits even 8 years ago of 1.9% to corporations. Admittedly 8 years ago our corporate tax rates were competitive, they no longer are. Look at how aggressively McCain's 2000 tax plan pursued getting the lower tax rate into the lower and upper middle-class incomes (70,000 a year) in 2000. I am certain that once our economy recovers John McCain will pursue raising the income level that the 15% tax covers, to "start on creating a system of flatter tax rates."

And McCain will do this without creating the corporate tax shelters that Obama does:

"One other thing I didn't mention, for small business people, I'm going to eliminate the capital gains taxes. So what it means is if your business succeeds, and let's say you take it from a $250,000 business to a $500,000 business, that capital gains you get, we're not going to tax you on it, because I want you to grow more. So you're actually gonna get some...you may end up, I'd have to look at your particular business, but you might end up paying lower taxes under my plan and my approach than under John McCain's plan. I can't guarantee that because I'd have to take a look a it. Alright? Thanks for your...thanks for the question though, I appreciate it." (http://www.youtube.com/watch?v=8Ilwk_wmsQk Obama says this at almost the end of the conversation.)

McCain is keeping the 15% capital gains tax in place, while phasing out the alternative minimum tax.

So the question boils down to: Is 500 or 1000 dollar checks (essentially an economic stimulus) the answer to our economy, or, providing a framework of growth by generating wealth for decades into the future? The answer to this is clear to me, John McCain.

Thank you for reading.

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