Tuesday, October 14, 2008

McCain Unveils New Economic Stimulus Proposal: Tax Cut For Millionaires

Today, John McCain finally revealed his new economic proposal. Remember on Saturday night, the McCain campaign told Politico.com that it was planning to unveil “new economic plans” that included temporary tax cuts on capital gains. Then on Sunday Morning Senator Graham said on the Sunday Morning news show that McCain would be coming out with a HUGE new plan. By Sunday night the McCain campaign was denying there was going to be a new plan, then there was some hint that there would be some announcement.

Monday came and John McCain didn’t announce anything, which caused some confusion, and then Barack Obama stepped up and announced “a new economic rescue plan geared toward middle-class voters.”

So of course John McCain decided he had to announce a plan. Of course since he and his campaign have no new ideas his new proposals was a lot like his old, with tax cuts for the rich. John McCain announced plans to “cut the capital gains tax on stock profits in half, from 15 percent now on stocks held a year or longer to 7.5 percent.

Think Progress has more here.

The Wonk Room’s James Kvaal noted the impact of cutting capital gains:
Households earning less than $50,000 a year collected a mere 2.5 percent of capital gains in 2005, according to the Tax Policy Center. Families earning more than $1 million a year collected 59 percent of capital gains. Moreover, most middle-class families with capital gains hold their investments in retirement accounts shielded against capital gains taxes.

Of course with the markets down 30%+ over the past year, the question is "What capital gains?"

No comments: