MORE of McCain; Saying One Thing, Doing Another

[DogPoundPup]

July 25, 2008
by Faiz Shakir, Amanda Terkel, Satyam Khanna, Matt Corley, Benjamin Armbruster, Ali Frick, Ryan Powers, and Igor Volsky
ECONOMY

On Wednesday, the Tax Policy Center released a report finding large disparities between Sen. John McCain's (R-AZ) public economic proposals and his advisers' private assurances. After comparing McCain's public economic policies with the "measured options outlined by his campaign," the center concluded that McCain's public proposals "would cost an additional $2.8 trillion over ten years" above what the campaign's stated policies would cost. Responding to the report, Douglas Holtz-Eakin, McCain's senior economic adviser, argued that the proposals McCain makes in town halls do not constitute official policy. But the differences between McCain's rhetoric and his policies are stark. While McCain's advisers suggest that the senator would "patch" the alternative minimum tax (AMT), McCain promises to completely repeal it. While McCain publicly advertises a broad expansion "of expensing investments," his economic consultants privately assure budget analysts that the senator would allow expensing for "only to three-and five-year equipment and only on a temporary basis." Overall, McCain's public economic pronouncements suggest that a McCain administration would provide even larger tax cuts for the richest Americans, increase the national debt, and reduce access to health insurance. McCain "is making diametrically opposed policy promises to different audiences at the same time," Robert Gordon and James Kvaal of the Center for American Progress observed recently.

MORE TAX CUTS FOR THE RICH: In a recent interview with Forbes, Holtz-Eakin conceded that the senator's tax plan is a pro-business proposal that is "pretty much a non-event on the personal side," saying it is "a package for American companies to manufacture and Americans to sell globally." Indeed, the Tax Policy Center concludes that McCain's plan gives "virtually no" or "very modest benefits" to the bottom 80 percent of taxpayers. While "some lower-income taxpayers benefit from the large cuts in corporate income," most of the benefit will "go to those at the top." On top of that, McCain's public pronouncements would offer an average tax cut that is "almost double the $1,230 tax cut under the economic advisers' version."Moreover, by "repealing rather than simply reducing the AMT" and allowing Americans to file taxes in an alternative system, McCain's plan allows "those in the top tax brackets" to "benefit most." Thus, the richest 0.1 percent of Americans earn "twice the tax cut that they would get under the more modest plan outlined by Senator McCain's economic advisers," the center states.

INCREASE THE NATIONAL DEBT: Since McCain's public promises costs an additional $2.8 trillion, his policies "would add enormously to the public debt" and force a McCain administration to undertake "a radical and unprecedented downsizing of government" to balance the budget by 2013. McCain's public promise to repeal the AMT would "reduce revenues by about $390 billion." His pledge to allow expensing of "all machinery and equipment investments would cost about $740 billion more than the temporary and limited proposal" advocated by his advisers, and his proposed alternative tax system would "reduce tax revenues by almost $1.2 trillion over ten years."

MORE AMERICANS UNINSURED: While it's unclear if McCain's health care plan -- which taxes workers' health benefits and creates new health insurance tax credits -- would expose health benefits to both income and payroll taxes or just to income taxes, experts agree that McCain's radical health care prescription would either result in a tax increase for millions of middle-class families or "blow a hole" in the national budget. The Tax Policy Center analysis concludes that McCain's health care proposal would cost $1.3 trillion over 10 years and eventually force every household to pay higher taxes on their health insurance. McCain's plan would undermine employer-based coverage and leave 55 million Americans without any kind of health insurance. According to the report, by 2013, 16 million Americans would lose the health benefits they get from employers.
http://pr.thinkprogress.org/

[Cha]

1. Just like the last 8 years..that's why the mainstream media

likes mccain so much..they couldn't get enough of the bush economy.