McCain, Obama duel on economic fix-it plans
By CHARLES BABINGTON
Associated Press
July 8, 2008
Page 2 of 2
At the same time, 49 percent said their views closely tracked Obama's portrayal of McCain's economic plan as a continuation of "the failed policy of George Bush." Four out of ten said their views were closer to McCain's claims that Obama's plan calls for up to a trillion dollars in new taxes as well as "a massive increase in federal spending, including a federal takeover of health care."
Obama renewed his call Monday for a $50 billion "second stimulus package" that would provide energy rebate checks for many families, a fund to help families avoid foreclosure and increased assistance for states hit especially hard by economic setbacks.
He said he would eliminate income taxes for retirees making less than $50,000 a year. People still working, he said in remarks he had planned to give in Charlotte, would be automatically enrolled "in a workplace pension plan that stays with you from job to job. And for working families who earn under $75,000, we will start that nest egg for you by matching 50 percent of the first $1,000 you save and depositing it directly into your account."
McCain's plans include doubling the child tax deduction from $3,500 to $7,000 "for every dependent." He also cited his plans to cut the estate tax, although Democrats note that it applies to few Americans.
McCain would provide refundable tax credits of $2,500 for individuals, and $5,000 for families, for all those who buy health insurance. Employer contributions toward health insurance would be treated as income, meaning workers would have to pay income taxes on it, but not payroll taxes.
Obama says that plan would seriously undermine the employer-based system that provides health insurance to about 158 million workers. He would require most employers to provide health care for their workers or pay into a national health care plan.
McCain said Obama's plan would hurt small businesses and hamper job creation.
McCain restated his support of free trade, though acknowledging it "is not a positive for everyone." He promised to retrain workers who lose their jobs to overseas plants.
Obama has said he would revisit major trade pacts such as the North America Free Trade Agreement. He said in Monday's prepared remarks that he believes in free trade, but the cause is not helped "when we pass trade agreements that hand out favors to special interests and do little to help workers who have to watch their factories close down. There is nothing protectionist about demanding that trade spreads the benefits of globalization as broadly as possible."
In Denver, McCain repeated his call to build at least 45 new nuclear plants, which he said "will create over 700,000 good jobs to construct and operate them."
Obama has said he would consider nuclear energy as part of a broader approach to energy production, which would emphasize renewable fuels.
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Associated Press writer Liz Sidoti reported from St. Louis. AP writer Jim Kuhnhenn contributed from Washington.
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