Posted on 04/15/2008 4:20:48 PM PDT by 2ndDivisionVet
PITTSBURGH - Republican Sen. John McCain on Tuesday called for a summer-long suspension of the federal gasoline tax and several tax cuts as the likely presidential nominee sought to stem the public's pain from a troubled economy.
Timed for the day millions of Americans filed their tax returns, McCain offered some immediate steps as well as long-term proposals in a broad economic speech. The nation's financial woes have replaced the Iraq war as the top concern for voters, and McCain, who has said economics is not his strongest suit, felt compelled to address the problems as he looks ahead to the November general election.
"In so many ways, we need to make a clean break from the worst excesses of both political parties," McCain told an audience at Carnegie Mellon University. "Somewhere along the way, too many Republicans in Congress became indistinguishable from the big-spending Democrats they used to oppose."
To help people weather the downturn immediately, McCain urged Congress to institute a "gas-tax holiday" by suspending the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day. By some estimates, the government would lose about $10 billion in revenue. He also renewed his call for the United States to stop adding to the Strategic Petroleum Reserve and thus lessen to some extent the worldwide demand for oil.
Combined, he said, the two proposals would reduce gas prices, which would have a trickle-down effect, and "help to spread relief across the American economy."
Aides said McCain's Senate staff was drafting a bill on the proposal. It's likely to face strong opposition not only from Congress but the states. The federal gasoline tax helps pay for highway projects in nearly every town through a dedicated trust fund. In the past, such proposals for gas tax holidays have not fared well as lawmakers and state and local officials prefer not to see changes in their revenue source.
McCain's effort to set his own economic course — and court independents — comes as the public is craving change. A new television ad airing in parts of Pennsylvania and Ohio says "McCain will take the best ideas from both parties to spur innovation, invest in people and create jobs."
McCain has faced criticism — fueled by Democrats as well as his own previous comments — that his policy strength is not economics. Democrats have argued that his free-market approach is out of step with people feeling the pinch. And, McCain has taken heat on taxes; he twice voted against cuts President Bush championed, but now advocates making them permanent because, he says, doing otherwise would amount to a tax increase.
Shortly before McCain's speech, the Labor Department reported another worrisome sign for the economy: Inflation at the wholesale level soared in March at nearly triple the rate that had been expected as the costs of energy and food both climbed rapidly. Oil prices hit a new high, rising over $113 a barrel.
To immediately address concerns about gas prices and the fallout from the credit crunch, McCain offered the gas-tax suspension proposal and said the Education Department should work with governors to ensure that each state's guarantee agency — nonprofits that traditionally back student loans issued by banks — is able to be the lender of last resort for student loans.
In the long-term, McCain offered plans aimed at helping the middle class and eliminating wasteful spending, saying he wants to:
_Raise the tax exemption for each dependent child from $3,500 to $7,000. Aides estimated it would cost $65 billion over one year to double the tax exemption, but argued that McCain would offset such expenses by cutting federal spending.
_Require more affluent people — couples making more than $164,000 — enrolled in Medicare to pay a higher premium for their prescription drugs than less-wealthy people.
_Offer people the option of choosing a simpler tax system with two tax rates and a standard deduction instead of sticking with the current system.
_Suspend for one year all increases in discretionary spending for agencies other than those that cover the military and veterans while launching an expansive review of the effectiveness of federal programs. Aides estimated a one-year freeze would save $15 billion.
While he touched on a wide-range of issues, McCain did not discuss the soaring federal deficit or enormous war costs. He also offered few details for his new proposals and did not include estimated price tags. Later, aides said if all of McCain's tax plans are implemented, including those previously announced, the total cost would be $195 billion as changes are phased in. They said McCain has found — or would find — the same amount of spending reductions to match.
McCain also sought to draw a contrast with Democratic rivals Barack Obama and Hillary Rodham Clinton, saying they would impose the single largest tax increase since World War II by allowing tax cuts enacted in 2001 and 2003 — and that McCain, himself, opposed — to expire.
"All these tax increases are the fine print under the slogan of 'hope:' They're going to raise your taxes by thousands of dollars per year — and they have the audacity to hope you don't mind," McCain said, playing on the title of an Obama book.
McCain, who has lagged behind his Democratic rivals in fundraising, made the same argument in an e-mail appeal for money.
Obama campaign spokesman Bill Burton said McCain's proposals offer "no change from George Bush's failed policies by going full speed ahead with fiscally irresponsible tax cuts for the wealthiest Americans." Clinton policy director Neera Tanden called it "a George Bush-redux of corporate windfalls and tax cuts for the wealthy that will bankrupt our government and leave working families with the bill."
McCain made his remarks a day after he said he believes the country has already entered a recession.
Make it permanent and I propose it be paid for by a tax on Warren Buffet, which I am sure he will be tickled pink to pay.
Love to see conservatives opposing tax cuts now. This McCain Derangement Syndrom sure is taking its toll.
Why not drill in ANWR or offshore?
A bandaid won’t work, Senator.
Gasoline taxes are basically a ‘use’ tax which is as close to a ‘fair’ tax as you can get. If they want to cut back any portion that gets returned out of the roads portion and into the general fund, then I’m all for it. Otherwise all they are doing is adding more debt which I’ll have to pay back later, plus interest. No thanks.
Senator McBrain dead seems all over the map.
Gasoline bad - Gasoline good, taxes good - taxes bad,
Wallstreet is evil and greedy, Hillary would be a great president.
McBrain dead needs to shut his stupid mouth and pick a VP that can run the show. He is the worst candidate we have fielded since Lincoln was shot. He makes Mike Tyson look like a nuclear engineer.
Agree 100%
There are plenty of other tax cuts that would do far more to stimulate the economy than cut the gasoline (road use) tax such as reduction or elimination of the corporate tax rate, elimination/reduction of capital gains etc. Plus, you can’t just continue to have deficit spending indefinately. Eventually my generation is going to have to pay it back which means future taxes will be higher.
Revenue-neutral? Who cares? :’) Thanks 2ndDivisionVet.
McCain Economics Weak? -
Offers most Practical Economic Proposal in a Decade
Cross Action News | 4-15-08 | Michael Bresciani
Posted on Tuesday, April 15, 2008 09:48:45 PM by Victory111
http://www.freerepublic.com/focus/f-news/2002178/posts
Yes there will be a loss of revenue from such a measure. But the shorterm gains will likely outweigh it. Will it stop what looks to be a ressesion? No. But it will provide some temporary benefit during the summer.
Thank you.
Supply isn't low, the dollar is.
No kidding? What's up with that?
Cut the dam taxes and do it yesterday, for crying out loud!
Who cares about all that? I just want cheaper gas, and less money going to the fedgov.
Dog bites man story.
Democrats always try to buy your votes with your own money.
Just more McCain pandering.
So true... I keep waiting for him to break into Cumbaya... and then I remember he’s on our side. LOL Yep, our side alright... his side is more accurate.
The McCain anti-conservative jab in the eye of the day....
John McCain: “Difficult” Not to Pick Running Mate Who’s Pro-Life on Abortion
http://www.freerepublic.com/focus/news/2002469/posts?page=8#8
Maybe he’s just trying to p!$$ us all off now so we’ll forget by November.
I agree to an extent. It do think a person could read this two ways though. He could have meant that the issue being an important one to him, he would have a ‘difficult’ time picking someone who wasn’t pro-life.
I’m guessing you think he’s expressing frustration by using that term. I would lean in your direction, but I may not be looking at it completely fairly, since I don’t care for one aspect of the man.
“I’m guessing you think he’s expressing frustration by using that term. I would lean in your direction, but I may not be looking at it completely fairly, since I don’t care for one aspect of the man.”
No, he’s just being McCain. I certainly agree with the last part of your statement.
bbbbut, where’s the money gonna come from? How do we make up for the loss? He’ll probably raise the limit on SS deductions or some slick way of screwing the upper middle class again....
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