Election day is only a few weeks away, and although I’ve blogged recently on the Vice Presidential candidate’s tax views, it has been a while since I have spent much time researching the latest on Sen. McCain and Sen. Obama’s views on economic issues. In my efforts to decide which candidate to cast my vote for I gathered the following list of the candidate’s views on 10 important economic issues, and I hope the information will help all of you make an informed decision this November as well!
1. Small Business
McCain:
By helping small business owners afford new equipment and technology, McCain hopes to promote growth in new and small businesses. He has also proposed a small business health care plan that would take the form of a tax credit that would be purchased personally and could be transferred to a different job if the employee where to leave their current position.
Obama:
Obama has long been a supporter of raising minimum wage to keep up with the cost of living. To help those struggling with the uneven difference between the cost of living and wages Obama plans hopes to continually index the minimum wage with the cost of living. His small business health plan also includes a refundable credit of 50% for employers that pay their employee’s health insurance premiums.
2. Personal Taxes:
McCain:
Extending the Bush tax cuts that were put into place in 2001 and 2003 is something McCain has been clear on from the beginning. He’s also dedicated to eliminating the Alternative Minimum Tax, as he feels it is unnecessary and completely replaceable. In its place, McCain hopes to put into place a two-rate income tax code that would greatly simplify our tax system.
Obama:
Although at first he supported repealing the Bush tax cuts, Obama now claims that he would not fully repeal the cuts but adjust them. However, he does not support extending the cuts past their expiration date. Obama also once claimed that he wanted to double the capital gains rate, but has since lowered his stance leaving many to wonder if he actually intends to target capital gains taxes or not. Obama is a strong supporter of tax cuts for low wage and middle class families, and has proposed numerous tax cuts aimed at helping American families.
3. Energy Security
McCain:
McCain is well known for his adamant support of nuclear energy has strong views about energy and the conservation of it. While he recognizes the threat of global warming, he still feels that nuclear energy is a safe and efficient way to go. McCain also supports offshore drilling as relief for high prices at the gas pump, and feels exploring other expensive energy options is simply not smart or affordable for our economy at this time.
Obama:
Taking pains to look into any and all alternative energy sources, Obama is not the biggest fan of nuclear energy as a main source. He is honest about gas prices, and has admitted that he understands the strain Americans are under. However, he does not support offshore drilling as a solution. However, in an attempt to push through some of his own policies on energy independence, he voted for limited offshore drilling in addition, as a compromise.
4. Real Estate & Foreclosures
McCain:
Though both candidates agree the real estate market is in trouble, they have slightly different takes on how the governments should intervene. McCain wants to offer limited financial aid and advice to borrowers, but with strict rules, restrictions, and guidelines. He also feels home rescue efforts are dealt with best within local communities and would provide additional funding to make that possible.
Obama:
Taking a strong defense against predatory loans, if elected Obama would work to create a $10 billion fund to help victims of such loans. He is appalled by the government’s willingness to bail out large investment banks in trouble, but reluctance to help individual citizens. In order to counteract this, Obama would create a 10% tax credit, awarded to any homeowner who does not itemize their taxes, and allow subprime borrowers to fight abusive lending practices. He would also set aside an additional $10 billion to maintain local government structures and authorize bankruptcy judges to reduce mortgage principal.
5. Health Care
McCain:
His voting record is limited on healthcare, but McCain still seems to have pretty strong views on the subject in this election season. His plans for overall healthcare seem to pertain especially to children without insurance as well as senior citizens. He has claimed that he would like to get health insurance to the 11 million children in this country without it, and also hopes to match funds for senior citizen’s prescription drugs. He did however vote against including prescription drugs under Medicare, a decision that has upset a lot of voters hoping to see large change in the healthcare system.
Obama:
Obama feels so strongly that healthcare should be available to every American, that he would like it to be a universal right, like our neighbors in Canada. Obama hopes to use money from ending the Iraqi war to make healthcare more affordable for every American. He also feels strongly about obesity, stating that by reducing the obesity rate we can save billions in wasted health care. Obama knows taking on insurance companies is a messy but necessary job in making healthcare as well as prescriptions reasonable. He also feels the terminally ill should never have to worry about money, and the right to live should be clearly theirs regardless of their financial status.
6. Mortgage Giant Rescue
McCain:
Although he missed the senate vote to give aid to Fannie and Freddie through temporary authority from the Treasury, McCain still supports the decision. He would like to replace the agencies management as well as end their lobbying and stop company dividends. Like so many others, McCain feels it is necessary to make sure companies like this do not collapse.
Obama:
Although he also supports providing aid to Fannie and Freddie, Obama does not support protecting the investors or CEOs involved with them. In addition to missing the vote for the federal bailout, Obama also missed voting for the housing bill president Bush signed into law in July.
7. Balanced Budget
McCain:
Well known for his strong dislike of earmarks, McCain vows he is very dedicated to cutting wasteful spending and balancing the budget. He was one of two republicans who voted in 1995 and 1997 to take social security off budget, and supports the balanced budget amendment, which would require an annual balanced budget. With the money he plans on gaining from cutting taxes, McCain plans on putting the money into Medicare, social security, debt reduction, and tax cuts. However, he also wants to enforce existing spending caps later on.
Obama:
By ending the war on Iraq, and taking away tax cuts for the wealthiest Americans, Obama plans to save billions of dollars and use the funds towards debt and budget crisis within our own country. Although Obama voted against a bill to reduce overall federal spending by $40 billion he claims he did not support the bill because it reduced funding for Medicaid, conservation, Medicare, agriculture, employee pensions, and student loans.
8. Free Trade
McCain:
John McCain feels globalization is an opportunity, and in 1999, he stated “we are in a global marketplace, and that is exceptionally good news for American families. Withdrawing from it is not just inadvisable, it is impossible. Free trade is indispensable to our prosperity. In other words, the less America trades the poorer America will be.” McCain thinks we need to reduce, not restrain, barriers to trade with other countries so we can profit from such goods. He supports NAFTA, GATT, and WTO. However, some critics feel McCain’s feelings towards free trade are too open, and that he is not fully taking safety measures and foreign policy issues into account.
Obama:
Obama feels free trade is a great opportunity, but one that needs to be fairly regulated. He has said he feels it is important to keep safety, strong labor, and environmental standards in mind. In February of 2008 he explained, “it is absolutely critical that we engaged in trade, but it has to be viewed not just through the lens of Wall Street, but also Main Street, which means we've got strong labor standards and strong environmental standards and safety standards, so we don't have toys being shipped in the US with lead paint on them.” Obama also feels NAFTA needs to be amended, and is a strong fighter for not just free trade, but fair trade.
9. The War in Iraq
McCain:
Due to it’s high costs the war has become a top economic issue in this election season. It is also an issue the candidates strongly disagree on. McCain is a strong supporter of the war, still calling it a “war on terror.” He even went as far to say Obama would “rather lose a war in order to win a political campaign." Not as concerned about what the war is costing the country, McCain feels it is well worth it for the safety if our citizens.
Obama:
Strongly opposing the war, Obama feels it is not only disrespectful and embarrassing occupying Iraq, but a complete waste of money. At a primary debate Obama claimed, “we have spent billions of dollars, lost thousands of lives. Thousands more have been maimed and injured as a consequence and are going to have difficulty putting their lives back together again. This has undermined our security. In the meantime, Afghanistan has slid into more chaos than existed before we went into Iraq.”
10. Recession
McCain:
Up until very recently McCain was against the term “recession”, stating earlier that “part of the problem in any recession is psychological. I'm still optimistic that nothing is inevitable.” He felt by doing things like eliminating the AMT and permeating tax cuts we could prevent a recession. However, just this past week both candidates claimed within 24 hours of each other that the term “recession” is exactly the term you could use to describe our economies status at this point.
Obama:
Taking a strong opinion on the economy, Obama feels it’s very weak and a recession is a reality we all need to face. “The news with Freddie Mac and Fannie Mae, I think, along with the unemployment numbers, indicates that we’re fragile,” Obama stated earlier in the month. However, he arose both applause and criticism when he stated he still dislikes Bush’s tax cuts and feels his must take place regardless of recession “even if we’re still in a recession, I’m going to go through with my tax cuts,” Obama said. “That’s my priority.”