McCain’s new economic proposal would cause ‘exodus of capital’ to the wealthiest Americans.
By on Oct 14th, 2008 at 3:05 pm
McCain’s new economic proposal would cause ‘exodus of capital’ to the wealthiest Americans.
Today, Sen. John McCain (R-AZ) gave a speech in Pennsylvania outlining his new economic proposal. Included in the plan is a provision temporarily lowering taxes on withdrawals from IRA’s and 401(k)s. During the speech, McCain touted this new provision, while saying that “it is essential we avoid an exodus of capital from the market.” Watch it:
But McCain doesn’t seem to understand that his proposal actively encourages the “exodus of capital” he is warning against. The Wonk Room explains here.
Update During his speech, McCain said, "Investors are always responsible for their investment decisions, but the hard earned savings of Americans should not be penalized by the erratic behavior of politicians."
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Wow, two years ago a Carlyle Group senior adviser requested 8.25% capital gains tax and a 25% corporate rate before the Senate Finance Committee. McCain’s plan goes further with a 7.5% capital gains rate.
It’s Christmas time for private equity underwriters (PEU’s), and McCain is Santa.
October 14th, 2008 at 3:09 pmMcCain said, “Investors are always responsible for their investment decisions, but the hard earned savings of Americans should not be penalized by the erratic behavior of politicians.”
– - Mother of Pearl, these guys wouldn’t know irony if Rick Davis himself lobbied for Irony.
October 14th, 2008 at 3:11 pmIt’s disaster capitalism, i.e. use the crisis to push through the big money boys’ shopping list.
This morning CNBC said the market liked the Bush bank investment program because it didn’t hurt existing preferred stock holders, those same big money men.
October 14th, 2008 at 3:12 pm“…but the hard earned savings of Americans should not be penalized by the erratic behavior of politicians.”
Namely, John Sidney McCain.
October 14th, 2008 at 3:15 pmMission Accomplished McFly!
October 14th, 2008 at 3:15 pm* McSAME *
October 14th, 2008 at 3:16 pm“hard earned savings of Americans should not be penalized by the erratic behavior of politicians.”This is one reason McPalin should not be elected to the W.H.Keep changing your economics plan and keep doing what your doing Johnny and come November Americans will remember all of your flipflopping and pandering.
October 14th, 2008 at 3:17 pmThere’s nothing erratic about the bailout program. At almost every turn it skewed toward the needs of the big money men. The “all you can eat” buffet grew and grew, yet credit didn’t loosen.
The jury is still out on the credit impact of that $3 trillion. While the bank table may be temporarily satiated, the Fed just sat a huge table of starving insurance companies. Don’t give them a menu!
October 14th, 2008 at 3:17 pmhmmm… compare to comment #36 in thread
“McCain Unveils New Economic Stimulus Package”.
Different economic sector but same formula applied and with the same results–advantage to those who can afford to ‘play’ with money, thus making them even wealthier.
I never took economics as a subject, I just use simple logic, basic math and connect the dots. ALL of McCain’s economic proposals thus far are based on assumptions far removed from the majority’ economic reality.
WE don’t have the money to make money to make us more money. Our money is necessary for survival.
McCain is too stupid and too ignorant to even understand that.
October 14th, 2008 at 3:22 pm“…but the hard earned savings of Americans should not be penalized by the erratic behavior of politicians.”
But those hard-earned savings haven’t been ” penalized” but actually eradicated, whilst the easily-earned and kept savings of the wealthiest McCain is now proposing to expand at the expense of those who have no savings left!
October 14th, 2008 at 3:25 pmWe cannot borrow our way out of debt. This simple fact of life seems to be ignored by both McCain and gasp, Obama. Tax cuts, tax breaks and such will not help us pay down our obscene national debt. We cannot afford to waste $12B/month on hostile imperial occupations of Afghanistan and Iraq. We need to rescind the Bush tax cuts which favored the ruling class.
October 14th, 2008 at 3:26 pmI’m sure the 10,000 people who lost their jobs in Elkhart County Indiana are just jumping for joy over this one
October 14th, 2008 at 3:29 pmBut I thought avoiding taxes was patriotic. Has the governor misled me?
Oh woe is me.
October 14th, 2008 at 3:41 pmHis drones can show up on Fox “News” and explain how a plan to let rich people yank their money out of the market and stuff it under the mattress prevents an exodus of capital any time now. This basically gives a big sloppy kiss to hedge fund managers who take most of what we working types would call a salary as capital gains which are already taxed at a much lower rate than earned income.
October 14th, 2008 at 3:47 pmYes, another McIIIrd MISSION ACCOMPLISHED banner in the works…
October 14th, 2008 at 3:56 pmI have a joke…
So the rich walked into John McCain campaign headquarters. Then a big party broke out with streamers, kazoos, Dom and Cindy McMoney being passed around for all.
Then they turned the TV to Fox News and saw the Dow plunge 500 points. Party over. Campaign done.
October 14th, 2008 at 4:05 pmAre you sure John didn’t say erotic politicians? They’ve clearly pushed Corporafornication.
October 14th, 2008 at 5:24 pmThe recession and bank bailout cost has to be giving Grover Norquist wet dreams. How better to “starve the beast” than to have declining tax revenues combined with an exploding deficit and continuing tax cuts for the wealthiest. And of course the Iraq war continues to drain the treasury.
October 14th, 2008 at 5:34 pmThe GOP Wrecking Crew have succeeded.
Do you think this will change even one voter’s mind?
October 14th, 2008 at 8:05 pmOne of the justifications McCain gives for reducing the capital gains tax is to spur investiment. One big problem with that claim. Manufacturing has contracted something like 23 months in a row. The contraction has left us with a huge problem with excess capacity. Now who in their right mind will be investing in plant expansion under these dire circumstances. Certainly not Ford or General Motors. Wait, Exxon-Mobil could sure use a tax cut that they could then pass on as executive bonuses. That will sure pull the country up by the boot straps and end this economic meltdown. Maybe we should double down on McCain’s proposal. (Just kidding).
October 14th, 2008 at 10:41 pmYou guys are so cynical. Don’t you realize that folks making minimum wage flipping burgers and washing dishes are the folks with the largest 401s and 457s.
If not for the 401s how could a minimum wage worker make it ?
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March 31st, 2009 at 10:22 am