John McCain has laid out his plan for how to help Americans recover from the recent shocks to the domestic and international markets. He took the action on Tuesday, a day later than he initially said he would and a day after Democratic presidential rival Barack Obama released his own economic plan—and McCain’s timing was not lost on the Obama campaign.
The New York Times:
In a plan in which most of the benefits would go to older voters, Mr. McCain proposed that people 59 and up who withdraw money from IRAs or 401(k) retirement plans in 2009 and 2010 pay a tax rate of 10 percent on the money rather than their higher normal rates. That part of the plan would cost $36 billion, based on the McCain campaign’s internal estimates.
In addition, Mr. McCain proposed a reduction in the tax on long-term capital gains to 7.5 percent from 15 percent in 2009 and 2010 at an estimated cost of $10 billion; an acceleration in the tax write-off for stock losses, allowing Americans to deduct $15,000 in losses a year for the tax years 2008 and 2009 (current rules allow deductions up to $3,000 in losses); a suspension on the tax on unemployment insurance benefits in 2008 and 2009; and a government guarantee on 100 percent of all savings accounts for six months.