New Report: A Fiscal Voter Guide to the 2008 Election
Promises, Promises: A Fiscal Voter Guide to the 2008 Election -- the newest report from US Budget Watch -- will help voters find their way through the thicket of policy proposals put forward by the campaigns of Sens. John McCain (R) and Barack Obama (D), presenting a capsule summary of the candidates' major policy proposals and an estimate of each proposal's likely fiscal impact.
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Budget Blog
5 September 2008 - 11:20am
September 5 - Last night at the Republican National Convention,
Senator John McCain proposed between $524 billion and $563 billion in annual
spending increases and tax cuts, according to a new analysis by the Committee
for a Responsible Federal Budget. Among those policies discussed included a
corporate tax cut, major healthcare reforms, a doubling of the dependent tax
exemption, unemployment reform, and the development of clean energy technology.
Senator McCain also called for keeping taxes low and cutting them where
possible. At the same time, McCain promised that he would cut government
spending by getting rid of failed programs, reforming the way government works,
vetoing pork barrel spending bills, and reducing the overall size of government.
Maya MacGuineas, President of the Committee for a Responsible Federal Budget,
responded to this claim, explaining that:
"Although
the McCain campaign has discussed their tax cuts in considerable detail, they
have been quite vague when it comes to spending reductions... It is hard to
imagine that Senator McCain will be able to pass everything he has promised on
the campaign trail and still balance the budget by 2013. We are in a deep fiscal
hole, and we need a serious and credible plan to get us out of it."
4 September 2008 - 5:31pm
September 4 - In an op-ed
in today's New York Daily News, Paul Weinstein and Marc Dukelman of the
Democratic Leadership Council argue that Senator McCain has failed "to reclaim
the mantle of fiscal responsibility." Although the Senator has spoken out
strongly against earmarks and other pork barrel spending, they argue that
Senator McCain's tax plan would considerably increase the deficit, and that he
has failed to propose the specific spending cuts necessary to finance them. As
they explain:
"No matter what new promises each candidate makes on the
campaign trail, his greatest challenge will be digging out from under the
mountain of debt Bush will leave behind... Yes, McCain still champions slicing and
dicing pork barrel spending projects. That is one of his trademarks. But those
cuts are not a metaphor for his broader fiscal plans; they're a distraction from
them... If the Republican candidate is serious about not growing the largest
deficits ever, cutting a few slices of pork won't be enough. Voters who
supported him on account of his commitment to fiscal responsibility should be
asking themselves a question many thought the Republican standard-bearer would
have already answered: Where's the beef?"
4 September 2008 - 4:38pm
| McCain |
Obama |
| Taxes |
|
Will make permanent most of the Bush tax cuts, eliminate the AMT, reform the estate tax, cut corporate income taxes, create a new, permanent R&E tax credit, raise the dependent child exemption, close corporate tax loopholes, and create an alternative tax system with fewer rates and deductions.
|
Will renew the Bush tax cuts for those making under $250,000, offer new tax credits for workers and homeowners, eliminate income taxes for many seniors, make permanent the R&E tax credit, expand the EITC and saver's credit, and close corporate tax loopholes.
|
| Healthcare |
|
Will replace the current employer healthcare exclusion with a flat refundable tax credit for those who purchase insurance, while implementing measures to reduce healthcare costs such as prescription drug reimportation, tort reform, better Health IT, and more consumer driven medicine.
|
Will move toward universal health coverage through mandates for employers and children as well as large public subsidies while enacting measures to reduce healthcare costs such as prescription drug reimportation, better Health IT, and incentives to increase efficiency.
|
| Social Security |
|
Will reform Social Security in a bi-partisan manner, or by submitting a comprehensive proposal for an up or down vote if necessary; opposes increasing taxes and supports private accounts to complement, rather than replace, Social Security.
|
Will raise additional Social Security revenue by applying new taxes to income above $250,000 and
will reform Social Security in a bi-partisan manner; has ruled out privatization
and opposes raising the retirement age or cutting benefits.
|
| Energy |
|
Will implement a cap-and-trade system for greenhouse gasses with both auctioned and freely distributed permits, encourage energy conservation and diversification, and end several energy subsidies.
|
Will implement a cap-and-trade system for greenhouse gasses with fully-auctioned permits, fund the development of new and better green technology, and end tax subsidies to oil and gas companies.
|
| Other New Spending |
|
Will increase the size of the military, develop a missile defense shield, and reform unemployment insurance.
|
Will introduce a number education reforms, while increasing basic research, growing the size of the military and increasing foreign aid.
|
| Spending Cuts |
|
Will eliminate all earmarks, freeze discretionary spending for a year, reform the defense procurement process, reduce agricultural subsidies ,and cut wasteful spending.
|
Will eliminate the guaranteed student loan program, cut earmarks, reform contracting procedures, reduce wasteful spending, and realize savings from ending the Iraq war.
|
| Budget Process Reform |
|
Will make budget rules more balanced, require a 3/5 majority to raise taxes, and seek a line-item veto.
|
Will re-instate pay as you go (PAYGO) rules to restore fiscal discipline.
|
|
