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Obama and McCain focus on tax plans
The public splits between McCain and Obama as to who could handle Iraq best, but Obama is viewed as the one best to handle the economy.
- AP
- Published: 00:06 June 15, 2008
- Obama is viewed as the one best to handle the economy.
- Image Credit: Gulf News archive
Washington: The paycheque struggles of Americans were at the centre of the presidential campaign, as Democratic candidate Barack Obama and Republican rival John McCain pushed their economic plans amid fresh reports of surging inflation and sagging wages.
Their head-to-head battle began in earnest last week, following Hillary Clinton's departure from the race, and has focused squarely on fiscal issues -trumping the unpopular Iraq war as the pressing issue on voters' minds and putting McCain at a distinct disadvantage.
The public splits between McCain and Obama as to who could handle Iraq best, but Obama is viewed as the one best to handle the economy.
McCain is seeking to frame an economic policy that defends extending President George W. Bush's tax cuts but embraces quick measures that the president opposes. Obama, benefiting from public disapproval of Bush's economic policies, has continued to link McCain to Bush.
The Labour Department reported Friday that consumer prices rose by 0.6 per cent last month - the biggest one-month increase in inflation since last November - pushed up by surging gasoline costs. After adjusting for inflation, weekly earnings for nonsupervisory workers were down 1.2 per cent in May, compared to a year ago, the department said in a separate report.
Jobless assistance
With the unemployment rate in May jumping to 5.5 per cent, McCain said Friday he would support extending jobless assistance and said he was willing to discuss other short-term measures to boost the economy. "I think we should explore a number of options," he said.
McCain argued for continuing Bush's tax cuts, most of which are set to expire in 2010. Failure to extend them, he said, would result in tax increases.
Obama has proposed tax cuts for low- and middle-income taxpayers, but would restore pre-Bush tax rates to the wealthiest Americans.
During an appearance in Ohio, Obama called for higher payroll taxes on wage-earners making more than $250,000 (Dh918,124) annually, a step that would affect the wealthiest 3 per cent of Americans.
He told senior citizens in Columbus, Ohio, that it is unfair for middle-class earners to pay the social security retirement benefit tax "on every dime they make," while millionaires and billionaires pay it on only "a very small percentage of their income."
An independent, liberal-leaning think tank, the Tax Policy Centre, issued an analysis of the candidates' tax plans that concluded that McCain's would primarily benefit very high income taxpayers, while Obama's would increase taxes for the wealthiest.
McCain said that in extending Bush's reductions, he would spur economic activity that would actually raise government revenue.
The Centre concluded that Obama's would offer larger tax breaks to low- and middle-income taxpayers than McCain would.
Also Friday, Obama rejected McCain's proposal for ten joint town-hall appearances, question-and-answer gatherings before small audiences that the Republican senator tends to favour. The Democrat has performed best at massive, emotional rallies drawing tens of thousands of people.
Obama has offered McCain five joint appearances until the November 4 election, but only one of those would be town hall-style and it would be on the July 4th Independence Day holiday, when few Americans would be watching.
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