Economists Support McCain Economics
By California Yankee Posted in 2008 | Economics | John McCain — Comments (54) / Email this page » / Leave a comment »
Economists' Statement on John McCain's Jobs for America Economic Plan
We enthusiastically support John McCain's economic plan. It is a comprehensive, pro-growth, reform agenda. The reform focuses on the real economic problems Americans face today and will face in the future. And it builds on the core economic principles that have made America great.
His plan would control government spending by vetoing every bill with earmarks, implementing a constitutionally valid line-item veto, pausing non-military discretionary government spending programs for one year to stop their explosive growth and place accountability on federal government agencies.
His plan would keep taxes from rising, because higher tax rates are exactly the wrong policy to restore economic growth, especially at this time.
His plan would reduce tax rates by cutting the tax that corporations pay to 25 percent in line with other countries, by completely phasing out the alternative minimum tax, by increasing the exemption for dependents, by permitting the first-year expensing of new equipment and technology, and by making permanent a reformed tax credit for R&D.
His plan would also create a new and much simpler tax system and give Americans a free choice of whether to pay taxes under that simple system or the current complex and burdensome income tax.
His plan would open new markets for American goods and services and thereby create additional jobs for Americans by supporting good free trade agreements, such as the one with Colombia, and working with leaders around the world to avoid isolationism and protectionism. His plan would also reform education, retraining, and other assistance programs so they better help those displaced by trade and other changes in the economy. His plan addresses problems in the financial markets and housing markets by calling for increased transparency and accountability, by targeted assistance to deserving homeowners to refinance their mortgages, and by opposing so-called reform plans which would raise the costs of home-ownership in the future.
The above actions, as well as plans to address entitlement programs -- especially Social Security, Medicare and other government health care programs -- and his regulatory reforms -- especially in the area of health care -- constitute a broad and powerful economic agenda. Because of John McCain's experience working with the American people in all walks of life, with members of Congress on both sides of the aisle, and with leaders around the world, we are optimistic that these plans will become a reality and will create jobs and restore confidence and strong economic growth.
The list of economists who have signed the statement is available here.
Despite the broad support from economists for McCain economics, Obama's campaign criticizes McCain's economic proposalsclaiming McCain's plans neglect the middle-class. Unfortunately, Obama's words say one thing, but Obama's proposals would raise taxes on job-creating small businesses, millions of seniors and has even for Americans making as little as $32,000 a year.
Obama Pledged Not To Raise Taxes On Middle Class Americans, But Voted In Favor Of The Democrats' FY 2009 Budget, Which Would Raise Tax Rates For Americans Earning $31,850 Or More:
Obama Pledged To Not Raise Taxes On The Middle Class. ABC's George Stephanopoulos: "Would you take the same pledge [that there will be no middle class tax increases of any kind]?" Obama: "Well, I not only have pledged not to raise their taxes, I've been the first candidate in this race to specifically say I would cut their taxes." (ABC Democrat Candidates Presidential Debate, Philadelphia, PA, 4/16/08)
Obama: "I'll Give A Tax Cut To Working People..." (Sen. Barack Obama, Remarks At A Campaign Rally, Denver, CO, 1/30/08)
Obama Voted Twice In Favor Of The Democrats' FY 2009 Budget Resolution. (S. Con. Res. 70, CQ Vote #85, Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48- 45: R 2- 44; D 44- 1; I 2-0, 6/4/08, Obama Voted Yea)
The Democrats' Budget Would Raise Taxes On Individuals Earning $31,850 Or More. "Under both Democratic plans, tax rates would increase by 3 percentage points for each of the 25 percent, 28 percent and 33 percent brackets. At present, the 25 percent bracket begins at $31,850 for individuals and $63,700 for married couples. The 35 percent bracket on incomes over $349,700 would jump to 39.6 percent." (Andrew Taylor, "Presidential Hopefuls To Vote On Budget," The Associated Press, 3/13/08)
Obama Is Now Considering Reducing Corporate Taxes After Criticizing John McCain's Plan To Do So:
The Wall Street Journal Reported That Obama Would Consider Lowering Corporate Taxes. "Sen. Obama's nod to lowering corporate taxes comes as Republicans have been attacking him for proposals that would raise the cost of doing business, such as his pledge to raise the tax rate on capital gains, and his vow to increase the top income-tax rates, which are often used by small, unincorporated enterprises. He didn't say how deeply he would cut the rate, but said it could be trimmed in return for reducing corporate tax breaks, simplifying the tax system." (Bob Davis and Amy Chozick, "Obama Plans Spending Boost, Possible Cut In Business Tax," The Wall Street Journal, 6/17/08)
Obama: "If we could eliminate loopholes in taxes, create a level playing field, then I think there's the possibility to reducing corporate rates." (Bob Davis and Amy Chozick, "Barack Obama On Economics: 'We're Going Through A Big Shift,'" The Wall Street Journal, 6/16/08)
In May 2008, Obama Called Corporate Tax Cuts "The Exact Wrong Prescription For America." Obama: "And his proposals, which are essentially $300 billion worth of corporate tax cuts ... I think is the exact wrong prescription for America." (NBC's "Meet The Press," 5/4/08)
Sooner or later Obama is going to have to stop saying one thing while he is proposing doing something else.
Image credit: Mike Mergen/Bloomberg News via the New York Times.