McCain proposed lowering the tax rate on Individual Retirement Accounts and 401(k) plans to the lowest rate, 10 percent, on the first $50,000 withdrawn. The McCain campaign estimated it would affect 9 million people over the age of 60, but the biggest benefit would go to the highest income seniors.
"Sen. McCain also shows how little he understands the economy by offering lower capital gains rates in a year in which people don't have an awful lot of capital gains," Obama campaign spokesman Bill Burton responded. "His trickle-down, ideological recipes won't strengthen our economy and grow our middle-class." Burton added that the McCain plan provides "no tax relief at all to 101 million hardworking families, including 97 percent of senior citizens, and it does nothing to cut taxes for small businesses or give them access to credit."
Obama's economic plan announced Monday called for suspending the tax on unemployment benefits as well as extending benefits. The Democrat also for a 90-day moratorium on home foreclosures at some banks, a two-year tax break for businesses that create new jobs and for allowing people to withdraw up to $10,000 from their retirement accounts without any penalty this year and next. McCain called the withdrawal provision "an invitation to capital flight."
This is the SAME kind of economics that George Bush has pandered for the past 8 years. Trickle down economics does NOT work. It was a carry over from the Reagan Days. Reagan figured that when the wealthy made their money first, some of it would trickle down to the bottom..Tain't So.