In this ongoing series I’m examining the McCain Economic plans. There are 8 parts to the Jobs for America plan so I”m looking at them one at a time. The previous article on energy can be found here.
John McCain’s plan calls for simpler taxes, and relief for small business, family farms, and entrepreneurs in the form of tax cuts. Entrepreneurs are the bedrock of american prosperity and in high tax environs they cannot continue to move America forward.
By allowing first year deductions to business on capital equipment and techology investments Jobs for America allows American workers to have the newest equipment, and helps put us back into a building and growth mode across the country. This also opens up opportunities for manufacturers who make those tools, those products, and that equipment.
That’s exactly what the Democrats do not like, they don’t like a growing America – they’d rather America be cloistered and isolated in a no-growth philosophy of decay like Europe. Barack Obama’s “Green Jobs” plan is code for hiring activists, lobbyists, and community organizers to lobby for more controls on business, more of your tax dollars, and less growth through energy initiatives and lifestye tailoring through legislation. These “green jobs” will choke growth and innovation in proven energy sectors like Nuclear, and keep us in the energy stasis we’ve been in for 35 years. It’s just more of the same with a new name. Jobs don’t come in colors, and if you artificially pump up just one sector of the economy you cripple others and stifle true innovation.
Trickle down Taxation:
Barack Obama’s plan would tax those small businesses, decrease the jobs they can offer, and increase the prices you have to pay when you buy gas, milk, bread, or school clothes. Barack’s plan is to use business as a surrogate and to indirectly tax you through them. These are the Democrats favorite tools: trickle down taxes. Barack doesn’t think you are smart enough to figure out that when you “tax the rich” you tax family farms, small business, and most American’s retirement plans and 401-k’s as corporate stock prices accomodate the higher taxation. If you work for a business, or buy things from a store then Barack’s tax plans will impact you thousands of times throughout the year — each time you go to a store. Barack Obama’s plan hits the poor, people on fixed incomes, and the middle classes the hardest in the end.
By cutting corporate tax rates, John McCain insures a growth economy, contrasted to the Obama plan which would throttle the engines of american productivity, and your pension plan or 401K by raising corporate taxes. If you are in a union, if you are in a pension plan, if you have savings, if you have a retirement account, Obama’s plan will indirectly and negatively impact those.
John McCain will ban internet and new cell phone taxes, the benefit of that should be clear to all.
Jobs for America will encourage private investment in research and development, and challenge American industry. Instead of all research coming from government grants we need to take the binds off private research by allowing tax credit for Research and Development. It is technology that keeps us strong in the world economy, and we must challenge US business’s to do much more of that.
Below you can see the Jobs for America tax reduction plan from John McCain’s campaign site:
Keep Tax Rates Low: Entrepreneurs are at the heart of American innovation, growth and prosperity. Entrepreneurs create the ultimate job security – a new, better opportunity if your current job goes away. Entrepreneurs should not be taxed into submission. John McCain will keep the top tax rate at 35 percent, maintain the 15 percent rates on dividends and capital gains, and phase-out the Alternative Minimum Tax. Small businesses are the heart of job growth; raising taxes on them hurts every worker.
Ban Internet Taxes: John McCain believes we must make a farsighted, robust, and fervent commitment to innovation and new technologies to sustain our global competitiveness, meet our national security challenges, achieve less costly and more effective health care, reduce dangerous dependence on foreign sources of oil, and raise the quality of education in the United States. John McCain has been a leader in keeping the Internet free of taxes. As President, he will seek a permanent ban on taxes that threaten this engine of economic growth and prosperity.
Ban New Cell Phone Taxes: John McCain understands that the same people that would tax e-mail will tax every text message – and even 911 calls. John McCain will prohibit new cellular telephone taxes.
Cut The Corporate Tax Rate From 35 To 25 Percent: A lower corporate tax rate is essential to keeping good jobs in the United States. America was once a low-tax business environment, but as our trade partners lowered their rates, America failed to keep pace. We now have the second highest corporate tax rate in the world, making America a less attractive place for companies to do business. American workers deserve the chance to make fine products here and sell them around the globe.
Allow First-Year Deduction, Or “Expensing”, Of Equipment And Technology Investments: American workers need the finest technologies to compete. Expensing of equipment and technology will provide an immediate boost to capital expenditures and reward investments in cutting-edge technologies.
Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D: This reform will simplify the tax code, reward activity in the United States, and make us more competitive with other countries. A permanent credit will provide an incentive to innovate and remove uncertainty. At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate, and remove the uncertainty now hanging over businesses as they make R&D investment decisions.