John McCain's economic plan  

This would be my second stance of discussions to bring the issues of the US general Election to mylot. In this discussion I would lay out the facts of John McCain's economic plan.

McCain's economic plan in brief.

John McCain intends to increase the strength of the US dollar. In actual fact, it is not the supply demand issue that surfaced this year that caused the spike in oil. It is the devaluation of the US$. John McCain would like to strengthen the US$ and thus decrease prices.

John McCain would wants a summer tax holiday which would decrease the price of petrol by 18 cents a gallon and decrease diesel price by 22.4 cents. This takes place from Memorial day (last Monday of May) to Labor day (first Monday in September).

John McCain wants to repeal the 54cents a gallon tax on foreign sugar based ethanol like Brazil. He hopes to increase competition and thus decrease the price at the pump.

John McCain would roll back on corn based ethanol mandates. He believes that this contributes to the rise in cost of food.

John McCain is against using the taxpayer's dollars to bail out any real estate speculators and market participants.

John McCain wants to initiate a HOME plan. This is to trade off a difficult mortgage with a more manageable 30-year fixed rate mortgage. FHA would be in charge of this.

John McCain wishes to work with the 50 Governors to instill a last resort lender for student involve in a credit crunch. They would be able to default their payments for the fall of the semester.

John McCain wants to cut individual tax rates, cut corporate tax rates, minimize expansive mandates (think union benefits) and improved R & D funding. All of these are step to help small businesses prosper.

John McCain would reduce federal borrowing. The interest rates are really killing Americans.

To control spending John McCain would invoke a one year spending pause. All non defense and non Vet related discretionary spending would cease for a year.

John McCain wants to take back earmark funds given in the FY 2007 calender.

All savings from the Iraq war would go back to reducing the deficit.

John McCain would review all spending provisions to end subsidies to high income earners and corporations. (Surprised right?)

John McCain wants to veto all pork barrel projects.

He wants to reform the civil service system which he thinks is broken. John McCain would also eliminate broken governments programs and cut spending in non-defense program.

John McCain would give a $5000 worth of health insurance to every American family every year. This is to help cover small businesses with the cost of health care.

John McCain would put an income tax cap of 35%. In this way he wishes to keep taxes low.

John McCain wants to cut corporate tax from 35% to 25%.

John McCain wants to cut the estate tax to 15% and give a 10 million dollar exemption.

John McCain want as low a barrier on trade as possible.



My analysis

I think John McCain really needs to brush up his economic plan.Majority of the things that we see are cut a certain tax and cut spending. Thats about it. The numbers are not there. There is no way of showing all the pluses, just the minus.

The exception is on health care, where he suggest to give every American family $5000 a year. But what does he mean by a family? If it is what I think it is the expenditure is going to be huge. That also was not mentioned. Plus, I think that the right wing would not be happy about it as it sound a tad leading to universal health care.


What I support in his plan:

Corporate tax cuts, R & D funding as it would create jobs.
Eliminating of all pork barrel projects and broken programs.
The cutting of the estate tax. I think it should be removed altogether as it is not generating a lot of revenue for the government anyway.
I agree with repealing the 54cents a gallon imported bio-fuel tax.
I agree with rolling back the mandates on corn, I do agree that it would raise the price of food.


What I oppose :

One year spending pause. If unnecessary projects can be halted for a year, it can be halted for longer than that as well. And why not stop it for defense and Vet programs as well.
Home plan does not solve the root of the problem. It should never happen again.
To impose a summer tax holiday without telling where we would replace it with is not good enough for me. He has no plan to solve the student loan crunch. Asking the state to loan money to students again does not solve the problem. In this aspect Obama really shines.

What I need to know more about :
John McCain says that he wants to strengthen the US dollar, what I want to know is how?
How different is his HOME plan from bailing out real estate speculators?
How is he going to reduce federal borrowing?
What earmark funds of FY 2007 does he want to take back?
What savings in Iraq is he talking about?
How is he going to explain the loss of revenue from income tax and other tax cuts? Just by cutting down spending?
He wants to decrease subsidies to corporations and high income individuals, but then what about the Bush tax cuts?

He should elaborate on all this and put it up on a accounting table. That is easier to read and check.




What do you think about McCain's plan? Do you think it would make the country move in the right direction? What do you agree or disagree with? What do you think is missing? I shall come up with Barack Obama's economic plan soon. Please comment.