Everett, Wash. Published: Tuesday, September 16, 2008
Highlights of candidates' proposals for economy
Scripps Howard News Service
Highlights of the candidates' economic proposals:
Taxes
Sen. John McCain: Would extend all Bush income tax cuts. Would lower corporate tax rate and maintain current capital gains rate. Would offer tax credit of up $5,000 for those buying health insurance. Would ban Internet taxes.
Sen. Barack Obama: Supports ending Bush income tax cuts for households with income above $250,000. Would offer tax credit up to $1,000 to middle-class households and eliminate taxes on seniors making less than $50,000. Would raise top rate on capital gains.
Spending
McCain: Would institute a one-year freeze on nonmilitary discretionary spending. Would veto earmarks. Would provide $7 billion to $10 billion in subsidies to state health insurance pools for high-risk patients.
Obama: Would spend $15 billion annually on alternative energy development and $18 billion on education. Would cut earmarks to 2001 levels and end subsidies to the oil and gas industry.
Budget deficit
McCain: Would balance the budget by 2013 by boosting economic growth and clamping down on spending. Would work with Congress on a bipartisan deficit reduction plan.
Obama: Seeks to reduce the deficit by raising taxes on wealthy, cutting special interest spending, closing corporate tax loopholes and ending Iraq war. Supports pay-as-you-go rules that require new spending or tax cuts to be paid for by new revenue or cuts in other programs.
Social Security, Medicare
McCain: Would supplement Social Security with private accounts. Says reform of the programs is needed to address long-term budget deficit. Opposes payroll tax increases.
Obama: Opposes benefit cuts or privatization. Seeks greater efficiencies and cuts in subsidies to Medicare providers. Would impose payroll tax on earnings above $250,000.
Trade
McCain: Believes globalization is an opportunity for Americans and supports initiatives to reduce trade barriers.
Obama: Supports free-trade agreements only if they include protections for labor and the environment.
Housing
McCain: Would encourage lenders to refinance responsible subprime mortgage borrowers who can't afford existing loans.
Obama: Would create fund to help homeowners avoid foreclosures.
