After several weeks of getting his ass handed to him on the economy, GOP presidential nominee John McCain is unveiling a new set of economic proposals today aimed at countering the devastating “failed policies” narrative that’s been advanced against him by the campaign of Democrat Barack Obama.
We wrote recently about that narrative – and McCain’s utter failure to flip the script on Obama – although we’ll be surprised if the latest iteration of the “McCain plan” will be enough to stop the bleeding.
McCain is proposing a $52.5 billion package of reforms, among them allowing old people to take money out of their IRA’s at a substantially lower tax rate,Â a fifty percent reduction in capital gains taxes, an “accelerated tax write-off” for losses in the stock market as well as a suspension on taxing unemploymentÂ insurance benefits for this year and 2009.
Obviously, we’re all about cutting cap gains taxes (one of the keys to the economic explosion of the 1990’s), and it certainly seems that McCain’s plans are geared at making the current economic crunch easier on a broad swath of the electorate.
Plus, the plan would deprive the government of $52.5 billion, which is always a good thing.
Having said that, the proposals amount to what Sic Willie likes to call “a whole lotta not much.”
McCain is tinkering around the edges of a fatally-flawed system by specifically targeting demographics he needs in order to close the gap Obama has opened up on him.
That’s not sound fiscal policy, it’s “too little, too late” pandering, which is precisely what all of the campaign-based economic proposals offered thusfar by McCain and Obama (i.e. “McBama”) amount to.
What neither candidate seems to recognize is that this country needs a radical overhaul of its current tax system – one that dramatically lowers the burden government currently imposes on ALL Americans and forces our government to stop doing things it should do, spending money it doesn’t have and then sticking us with the tab.
Of course, Washington politicians aren’t ever going to do that because it would mean cutting them off from the multi-trillion entitlement programs and hundreds of billions in deficit pork they’ve grown addicted to.
McCain’s proposals make sense, but they do nothing to get at the heart of the issue.
We don’t need “too little, too late” tinkering, we need somebody to come in and throw out the Washington “moneychangers” and put that cash back in your pocket.