McCain + Economy = Bush? - The Washington Post 4/16/08 - JB

On washingtonpost.com today, McCain’s proposed economic plan was hailed as benefiting the corporate world, and leaving the working-class behind.

McCain’s speech on April 15, was his most extensive summary of his economic ideas to date. The proposed plan would do away with the alternative minimum tax, cut corporate tax rates, and offer business breaks. For the working-class he proposed a suspension of the federal gasoline tax through the summer.

McCain’s economic past has been questioned in the recent slide into recession. First he said the government should not “rescue” those in economic crisis, then when relenting and moving more to the left, he was labeled a flip-flopper.

“In my administration, there will be no more subsidies for special pleaders, no more corporate welfare,” McCain said.

Much of his proposal though, is aimed at the corporate world. McCain wants to cut the corporate income tax rate from 35 percent to 25 percent and also allow businesses tax write offs for the cost of new equipment and technology.

McCain’s middle-class tax cut proposal, an end to the AMT, is hard pressed definition of the middle class. Ninety-three percent of 4 million paying the AMT earn between $200,000 and $1 million, according to the Tax Policy Center.

Democratic opponents labeled his speech as a repeat of Pres. Bush’s economic plans.

McCain and his aides defended his plan, saying that struggling companies have to be more competitive in allowing them to hire more workers.

Loss of jobs, and rising prices are a major concern for, “millions of working men and women in Pennsylvania, Ohio , and Michigan and beyond,” McCain said

McCain supports making the Bush administration tax cuts permanent. He also wants simplify the tax system and allow people to choose whether to stay in the current tax system or use his simplified one.

One analyst said the cuts in taxes would cost the federal government about $200 billion annually but would be offset by spending cuts, especially congressional earmarks and growth in the economy.

See more of McCain’s economic plans here: nytimes.com.