John McCain to unveil new economic measures
PHILADELPHIA -- Seeking to address the economic woes of American families in this final stretch of the campaign, John McCain will unveil new economic measures today in Pennsylvania that would include slashing the top tax rate on capital gains in half -- a move the campaign hopes will help stimulate the shaky economy.
McCain's new proposals, some of which are targeted toward seniors facing retirement, come just three weeks before the election and on the eve of the final presidential debate between the Republican candidate and Democratic opponent Barack Obama at Hofstra University in Hempstead, N.Y. They are part of McCain's effort to right his campaign and regain voters' trust in his handling of the economy, an area in which more voters favor his opponent.
McCain's standing in the race has been hit hard by the nation's economic crisis, and there was new evidence of that trend in polls this morning from Quinnipiac University. Obama is now leading McCain in Colorado, Michigan, Minnesota and Wisconsin by significant margins, according to the poll conducted for the Wall Street Journal and washingtonpost.com.
McCain's campaign released limited details of his new "pension and family security plan" several hours before he will deliver an economic speech in Blue Bell, Pa., late this morning.
McCain will call for reducing the maximum tax rate on long-term capital gains by half from 15% to 7.5% in 2009 and 2010 -- a proposal his campaign hopes would restore liquidity to the markets.
In a measure aimed at seniors, he will call for taxing withdrawals from IRA and 401(k) accounts at 10%, the lowest rate, this year and next year. His campaign estimated that the proposal -- which would only apply to up to the first $50,000 withdrawn -- would give some 9 million seniors more flexibility with their retirement funds.
His campaign also put forward a new proposal to eliminate taxes on unemployment insurance benefits for Americans who were making less than $100,000 -- the tax suspension would be for 2008 and 2009.
McCain's economic advisor Douglas Holtz-Eakin said the new package's price tag would be $52.5 billion over two years.
McCain has already called for suspending rules that require seniors to sell their stocks at age 70œ in the midst of a financial crisis -- to avoid forcing them to sell at a time when their assets may be worth less.
