As he struggles to convince voters he is the best candidate to handle the economy, John McCain is considering whether to issue a new set of economic proposals, possibly including lower taxes on dividends and capital gains.
Sen. Lindsey Graham (R-S.C.), one of McCain’s closest allies, said on CBS’ “Face the Nation” that the Arizona senator was weighing a plan “along the lines that now is the time to lower tax rates for investors — capital gains tax, dividend tax rates — to make sure that we can get the economy jump-started.”
McCain has said previously that he would maintain the 15% tax rates on dividends and capital gains. Aides cautioned Sunday that, while discussions were underway, McCain was weighing many options and had not settled on any specific new proposals.
Graham said the campaign would discuss a plan Sunday, and he expected McCain to offer “a very comprehensive approach to jump-start the economy by allowing capital to be formed easier in America by lowering taxes.”
The economic crisis has created an extraordinarily difficult environment for McCain; he is trying to succeed a Republican president with very low approval ratings at a time when most voters believe the nation is on the wrong track. McCain on Wednesday has a final prime-time opportunity to outline his economic proposals during his final debate with Barack Obama; he promised volunteers Sunday he would “whip his you know what in this debate.”
There was also little attention paid to a McCain proposal this week to protect seniors by suspending a rule that requires them to begin selling off their retirement assets when they reach the age of 70 1/2 , which is onerous “at a time when the market is hurting the most,” McCain said. The Obama campaign expressed support for that proposal and called on Treasury Secretary Henry M. Paulson to act on it.
A potential reduction in the capital gains and dividends tax rates would build on McCain’s already robust plans for tax cuts. He has proposed lowering the corporate tax rate from 35% to 25%, and would target middle-class families by doubling the exemption for dependents from $3,500 to $7,000 while phasing out the Alternative Minimum Tax.
Once an opponent of Bush’s tax cuts, McCain now says he would make them permanent.
Obama would keep the corporate tax rate at 35% and raise the highest tax rate on dividends and capital gains from 15% to 20%. He would raise taxes on American families making more than $250,000 a year while offering tax cuts for everyone under that threshold.
May I suggest if one wants the people to have confidence in one’s leadership, then possibly pick an economic plan and stick with it.