Wednesday, October 15, 2008

McCain vs. Obama - Economic Plans

Over the past 24 hours, Sen. John McCain finally released his plan, called "the pension and family security plan," which builds on the senator's "American home ownership resurgence plan," which he introduced during last week's debate. His announcement comes on the heels of an Obama announcement on Monday and speculation by his campaign surrogates that something was in the offing.

McCain's "Pension and Family Security Plan":

That home owner proposal that McCain released last week called for using $300 billion of the $700 billion financial bailout package to keep Americans in their homes, stop declining housing values, and stabilize the financial markets. The proposal has the federal government buying all of the mortgages of houses whose property values have declined and then refinance them for the homeowner... projected cost: $300 million.

McCain's new plan includes specific proposals to help seniors, those saving money and homeowners.

The plan will help seniors by lowering taxes on withdrawals from their retirement accounts and suspending tax rules that force them to sell their stocks during the financial crisis, the campaign said.

The plan will help those saving money by accelerating the tax write-offs for those forced to sell stocks at a loss in the current market and reducing capital gains taxes for 2009 and 2010 to raise the incentive to save and invest, according to the campaign.

To provide relief for homeowners, the plan includes a proposal to purchase mortgages directly from the homeowners and mortgage servicers and replace them with manageable, fixed-rate mortgages.

To assist workers, the plan would eliminate taxes on unemployment benefits, according to the campaign.

Sen. Barack Obama has called McCain's plan "a day late and 101 million middle-class families short."

On Monday, Obama released his four-part "economic rescue plan" for the middle class.

Obama's "Economic Rescue Plan":

Obama's plan proposes a temporary tax credit of $3,000 for firms that create new jobs in the United States over the next two years, and penalty-free withdrawals from IRAs and 401(k)s in 2008 and 2009.

The Democratic candidate called for new legislation that would give families the option of withdrawing as much as 15 percent of their retirement savings --- up to a maximum of $10,000 --- without facing a tax penalty this year or next. He also called for a temporary lifting of taxes on unemployment insurance benefits.

The Illinois senator also proposed a 90-day foreclosure moratorium for homeowners acting in good faith, and a new effort to address the growing credit crisis at the state and local level.

Under the Obama plan, the Federal Reserve and the Treasury would provide much the same kind of backing to state and municipal governments as the recent federal bailout did to the commercial credit market.

"We can't wait to help workers and families and communities who are struggling right now -- who don't know if their job or their retirement will be there tomorrow; who don't know if next week's paycheck will cover this month's bills," Obama said. "We need to pass an economic rescue plan for the middle-class ... and we need to do it right now."

Calculate your household savings with the Obama Plan vs. the McCain Plan:

Read the article about McCain's economic plan here.

Read the article about Obama's economic plan here.

Read the New York Times article that compares the two plans here.

Read and download the Obama campaign PDF that does a side-by-side comparison of the two plans here.

plez sez: using Obama's calculator, my family will save about $1300 in taxes under the Obama plan and around $220 in taxes under the McCain plan.

later tonight, both candidates will get the opportunity to speak to their plans in more detail in the final presidential debate... where mccain promised to beat Obama's "you-know-what"!

i'm debated out! i doubt i'll be tuning in...

1 comment:

All-Mi-T [Thought Crime] Rawdawgbuffalo said...

to be honest - they both foul, but im just an idiot savant, we gone be worse than argentina and Thailnad combined deposits and despots