McCain Policies Will Support Reasonable Economic Growth: Small business is the key to job growth. Small business will benefit from:
- Low individual tax rates - sole-proprietorships, partnerships, landlords and others are taxed under the individual income tax.
- Access to capital from low tax rates on dividends and capital gains.
- Minimizing expensive mandates - such as those for health insurance and pro-union initiatives like card check.
- Enhancing international competitiveness to keep jobs here; not abroad.
- A lower corporate tax rate.
- Improved investment and research incentives to ensure that workers have the most modern technology.
- Bringing the budget to balance, reducing federal borrowing, and controlling spending to reduce the burden on the economy.
90% of the businesses in America are privately owned, any moves that free up capital for them, and lower their costs are good for the United States.
Lower Capital Gains would encourage investment, and would also encourage corporations to pay more in dividends distributing more of their wealth to investors who can turn around and invest it in new companies, which will lead to their growth, and development.
The opposite plan would actually delay additional investment, because people would be less inclined to take risks in new companies because they will face lower returns on investment that do not make the risk logical to take.
Companies would also feel pressured to cut their dividends because investors would rather see the money that would be lost to higher taxes reinvested in the company. Which means by raising Capital Gains you would encourage stagnation of money instead of flow of money.
- The McCain administration would reserve all savings from victory in the Iraq and Afghanistan operations in the fight against Islamic extremists for reducing the deficit. Since all their costs were financed with deficit spending, all their savings must go to deficit reduction.
We need to get out of the hole. There is no other choice. America can't continue to act like a family that has just gotten a credit card, and didn't read the small print where it states that you need to pay the money you borrow back.
- A one-year spending pause. Freeze non-defense, non-veterans discretionary spending for a year and use those savings for deficit reduction. A one-year pause in the growth of discretionary spending will be imposed to allow for a comprehensive review of all spending programs. After the completion of a comprehensive review of all programs, projects and activities of the federal government, we will propose a plan to modernize, streamline, consolidate, reprioritize and, where needed, terminate individual programs.
A more efficient government would mean that the "Help Me" Programs would actually do more for who they are intended and less to line the pockets of government employees.
- Take back earmark funds. The McCain Administration will reclaim billions of add-on spending from earmarks and add-ons in FY 2007 and 2008.
Depends on what's done with the savings, if its used to further decrease the deficit, good, if not, then its only benefit is that it stops politicians from being able to bribe their constituents with federal money.
- Eliminate broken government programs. The federal government itself admits that one in five programs do not perform.
- Reform our civil service system to promote accountability and good performance in our federal workforce.
- Reform procurement programs and cut wasteful spending in defense and non-defense programs.
Efficient, Effective Government. It'll be easier to lower expenses, which means lower taxes as the government would not need as much of our money to function.
Reform Social Security: John McCain will fight to save the future of Social Security, and he believes that we may meet our obligations to the retirees of today and the future without raising taxes. John McCain supports supplementing the current Social Security system with personal accounts - but not as a substitute for addressing benefit promises that cannot be kept. John McCain will reach across the aisle to address these challenges, but if the Democrats do not act, he will. No problem is in more need of honesty than the looming financial challenges of entitlement programs. Americans have the right to know the truth and John McCain will not leave office without fixing the problems that threatens our future prosperity and power.
Maybe some privatization of Social Security which would be a good thing, because it would allow individuals to choose where their retirement funds are saved. Whether it be a savings account or stocks and bonds.
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. John McCain's opponent wants to increase the marginal income tax rate which applies to the nation's 23 million small business owners who pay their taxes under the individual tax rate system.
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. American workers deserve the chance to make fine products here and sell them around the globe.
90% of business are small family owned businesses. Lowering their costs means that they will be able to continue to stay in America, and compete against foreign corporations. Making them more competitive and more profitable makes it easier for them to expand and enter new industries increasing competition.
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.
Cuts out a lot of chicanery in the lobbying system where lobbyists try to get different items depreciated at different rates so that companies can deduct those items faster and thus pay lower taxes. Allowing companies to deduct all at once means that they don't need to try lobbying for changes in depreciation rates, which means they are more likely to make the capital purchases they need when they need to.
Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D: This reform will greatly 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.
Encourages R&D which leads to development of new technologies and new products. Would encourage corporations to maintain R&D Budgets or even increase them.
Allow Families To Keep Their Businesses: John McCain proposes reducing the Estate Tax rate to 15 percent and permit a generous $10 million exemption.
Makes it easier for small sole proprietorships to survive the death of their founder, and would lower some of the chicanery people engage in to avoid the Estate Tax.
John McCain believes that globalization is an opportunity for American workers today and in the future. Ninety-five percent of the world's customers lie outside our borders and we need to be at the table when the rules for access to those markets are written. To do so, the U.S. should engage in multilateral, regional and bilateral efforts to reduce barriers to trade, level the global playing field and build effective enforcement of global trading rules.
Export growth is the strongest part of our sluggish economy, and we should be encouraging the growth of even more jobs in this sector through more free trade agreements which give American firms more access to sell our goods and services abroad.
Open and Free markets means a level playing field for our corporations which makes them more competitive.
Increasing our exports would also help lower our trade deficit (most of which is Oil and Consumer Goods) by allowing our export companies which primarily manufacture capital goods better access to foreign markets. It would also bring more wealth into the United States.
Though that is actually open to debate, depending on which economic theories you believe. For some one that believes in Adam's Smith Theories on the Markets it makes sense.
