McCain: Obama's Definition of Rich Is 'Creeping Down'John McCain raises flags over Joe Biden's latest call for tax breaks for the middle class -- "people making under $150,000 a year."
John McCain accused his Democratic rivals on Tuesday of steadily downgrading their definition of the middle class in an effort to hit more voters with tax increases.
"We can't let that happen," the Republican presidential nominee told a Pennsylvania audience.
Barack Obama has consistently said that families making less than $250,000 a year will not see a tax increase under his administration. He also says those making under $200,000 will see a tax cut.
But Obama's running mate, Joe Biden, told a Scranton, Pa., TV station on Monday that Obama's tax break "should go to middle class people -- people making under $150,000 a year."
McCain, who over the past few days has warned about the "dangerous" economic consequences of allowing a Democrat in the White House to work with a Democratic majority in Congress, said Tuesday that Biden was previewing Democratic tax policies to come.
"You getting an idea of what's on their mind, huh? A little sneak peak," McCain said, pointing to Biden's comment. "It's interesting how their definition of rich has a way of creeping down. At this rate, it won't be long before Senator Obama is right back to his vote that Americans making just $42,000 a year should get a tax increase."
Obama's campaign released a statement standing by his tax plan, saying, "The McCain campaign's attacks are getting more desperate by the hour."
Spokesman Tommy Vietor said Obama's plan has consistently been to make sure families earning $250,000 do not see an increase to their share of the tax burden.
The statement did not explain what Biden was referring to when he defined middle class as those making under $150,000 annually.
I'm not s'sure the McCain campaign is as desperate as the Obamies would like everyone to believe.... It sorta sounds like Obama-O'Biden accidently let the cat out of the bag or it was done deliberately so that when they raise taxes they can say it shouldn't be a surprise because they'd "revised" the figure during the course of the campaign. More of the "Change" Obama's been talking about.... or maybe he means "change" is all we'll have left if he is elected.
10 Things That Are Going Right in a Bad EconomyNever in modern memory have Americans been so gloomy about their future. A record 90% of registered voters say the country is seriously off on the wrong track, according to the most recent ABC News poll. A long economic slump lasting well into 2009 looks likely.
But heart. The editors of Kiplinger's Personal Finance and Kiplinger's forecasting came up with 10 things going right these days. See if you agree:
1.Oil Loses Its Swagger: With the U.S. and global economy hurting, oil prices have dropped more than 50% in just three months, from $147 a barrel in July to the $65-70 range. Remember $80-$100 fill-ups at the pump? The national average for a gallon of gasoline is below $3.00 again, from $4.11 in March, and should stay below $3.50 through next year. Prices for home heating oil and natural gas are also headed lower this winter than last.
2. A Tipping Point for the Auto Industry: After years of talk and false starts, finally, all the major carmakers are furiously developing hybrid and alternative-fuel vehicles that could lessen our dependence on foreign oil. Meanwhile, desperate dealers are offering unheard-of incentives on new, gas-fired models. For example, Toyota is offering $1,000 cash back and 0% financing on the 2009 Camry, the most popular car in America. Don't drive much? If you've always wanted an SUV or truck, the discounting on some models is extraordinary.
3. Interest Rates Are Low and Headed Lower: The prime rate is at 4.5%, which is driving down interest rates on home-equity lines of credit and some consumer loans. The interest rate on a traditional 30-year fixed-rate mortgage is averaging 6.5%, the highest it's been since the summer of '07, but still not too far from the historic low of 5.8% reached in 2003-05 and 1963-65. And although credit-card companies are cutting personal spending limits, rates are dropping, too. The average rate on credit-card purchases fell to 11.89% in the first week of October, down from 12.13% in September, according to LowCards.com, which tracks 1,260 credit cards.
4. Homes Are More Affordable: Real estate, which was overpriced during the housing bubble, has returned to earth. That's especially good news for first-time home buyers who were priced out of the market. While scare stories persist of credit drying up, the reality is more a return to traditional lending standards that had been thrown overboard-recklessly in many cases-by lenders. That means to qualify you usually need a 20% down payment, sufficient annual income, good credit and a tolerable load of debt.
5. Your Bank Savings Have Never Been Safer: The $700-billion federal rescue plan more than doubles the amount of federal deposit insurance on individual bank accounts, to $250,000 from $100,000. Uncle Sam is also now providing providing unlimited FDIC insurance on non-interest-bearing accounts, covering virtually all of the nation's small businesses. Plus, a new temporary federal insurance program covers the full value if your money-market-fund shares fall below a net asset value of $1.00 (called "breaking the buck"). The program provides coverage for shareholders for the amount they owned on September 19, 2008. See Your Financial Crisis Questions Answered for more.
6. Stocks Are on Sale, and Many Bonds Offer Terrific Yields: The current bear market is approaching the 1973-74 and 2000-2002 downturns, the two worst retreats since World War II. That's the bad news. The good news: Individual blue chips are selling at bargain prices. For example, shares of AT&T sell for about eight times estimated 2009 earnings and yield 6%. Networking giant Cisco Systems sells for only ten times earnings estimates for its July 2009 fiscal year. Johnson & Johnson, as steady an Eddie as you'll find, sells for just 13 times '09 forecasts, and Google is going for less than 15 times estimates. Triple-A-rated tax-free bonds, an extraordinarily safe investment, are paying 5%-plus for ten years and 6% for 20. That's more than the Treasury offers for bonds of the same maturity.
7. The Miracle of Technological Innovation Continues: Been to Best Buy, Sam's or Costco lately? For $799, you can now buy a 42-inch, high-definition flat-panel TV that will knock your socks off. Throw in another $200, and you can get a surround-sound system to truly transform your den into a home theater. A top-of-the-line PC with more memory than you'll ever use now costs $1,000; high-end laptops with all the bells and whistles go for $1,200, down from $2,000-$4,000 five years ago. And giant leaps in handheld devices, such as Apple's new iPhone, have revolutionized the way people interact with the world.
8. Prosperity Reigns in the Heartland: The fall harvest is shaping up as one of the best ever, despite the destructive weather and floods in the Mississippi River corridor since last spring. Exports of U.S. farm products will increase more than 40% by value this year. And recent years of high profits have allowed farmers to pay down debt so low that it accounts for a measly 9% of their assets -- providing all the credit they'll need for 2009 operations. At home, while food prices jumped sharply earlier this year, the weak economy is now expected to slow further price increases. (Consider Maine Lobster, now selling for only $5.99 a pound).
9. A New Tone and Direction in Washington: Whether it's Barack Obama or John McCain who enters the White House in January, election of a new chief executive should provide at least 100 days of galvanizing certainty for markets, and a new direction and sense of purpose for the country.
10. Shoppers Can Expect Great Gift Buys This Holiday Season: Retailers depend on robust end-of-year sales to turn a profit, but for 2008, the National Federation of Retailers forecasts holiday spending will increase only 2.2% from last year. That won't even beat inflation. It's good news for bargain hunters, though. Both brick-and-mortar and online retailers are gearing up to offer huge discounts to boost sales. For example, Deal News predicts a DUAL Core Intel Laptop will go for as low as $299 on Black Friday, the day after Thanksgiving, and a Canon PowerShot SD1100 (recommended in our Simple Tech picks) will go for a very low $139.
So chin up. We've been through hard times before. To quote Rudyard Kipling, "If you can keep your head when all about you are losing theirs ..."
* refers to one of President Reagan's favorite jokes...
"Worried that their son was too optimistic, the parents of a little boy took him to a psychiatrist. Trying to dampen the boy’s spirits, the psychiatrist showed him into a room piled high with nothing but horse manure. Yet instead of displaying distaste, the little boy clambered to the top of the pile, dropped to all fours, and began digging.
“What do you think you’re doing?” the psychiatrist asked.
“With all this manure,” the little boy replied, beaming, “there must be a pony in here somewhere.”
I may be whistling past the graveyard but Obama and Biden just look scared in recent appearances while McCain and Palin seem happy and confident. Do you see them the same way?