Barack Obama
DemocraticPresidential Nominee
Obama and McCain on the Issues
Welcome to CQ Politics' guide to the policy positions, voting behavior and public statements of Barack Obama and John McCain. Notes, Votes and Quotes provides a serious and non-partisan examination of Obama and McCain's stands on the key issues of the day; what they propose to do as president; how they have voted in the Senate, according to CQ's unparalleled coverage of congressional voting behavior; and what they have said about these issues. We'll continue to add new issues until the election, so check back regularly.
Presidential Nominee
(Photo by Brendan Hoffman/Getty Images)
John McCain
RepublicanPresidential Nominee
(Photo by Mark Wilson/Getty Images)
Economy
Obama's economic plan calls for reducing taxes for middle and lower-income taxpayers and raising taxes on higher-income taxpayers. Obama has proposed a "Making Work Pay Credit" to provide workers with a rebate of some of their payroll tax dollars. His other proposals include a 10 percent tax credit to help homeowners offset mortgage interest payments and eliminating capital gains taxes on investments in small businesses and start-up companies.
Obama has proposed a three-month moratorium on home foreclosures.
McCain supports a variety of tax cuts to boost the economy, including a permanent repeal of the alternative minimum tax (AMT), cutting the corporate tax rate from 35 percent to 25 percent, reducing capital gains taxes and increasing the exemption for dependents.
McCain has proposed a $300 billion plan that would direct the Treasury secretary to buy troubled mortgages from lenders and then renegotiate the terms for consumers.
Obama in October 2008 was among the 74 senators who voted for the financial market stabilization bill, signed into law by President Bush, that will allow the Treasury to use up to $700 billion to buy certian mortgage assets. (Senate Roll Call Vote 213, Oct. 1, 2008)
Obama in May 2006 was among 44 senators who voted against a bill, signed into law by President Bush, that extended about $70 billion in tax cuts over a five-year period. (Senate Roll Call Vote 118, May 11, 2006)
McCain also voted for the bailout law. (Senate Roll Call Vote 213, Oct. 1, 2008)
McCain in May 2006 was among the 54-senator majority that voted for the $70 billion tax cut bill. (Senate Roll Call Vote 118, May 11, 2006)
McCain in 2003 was one of three Republican senators who voted against a tax bill, supported by the Bush administration, to reduce taxes by $350 billion over 11 years. McCain was on the losing side of the 51-49 vote. (Senate Roll Call Vote 179, May 15, 2003)
McCain in 2001 was one of two Republican senators who voted against the Bush administration's $1.35 trillion tax cut plan. McCain was on the losing end of the 58-33 vote; Obama was not a U.S. senator at the time. (Senate Roll Call Vote 170, May 26, 2001)
"I want to give a break to 95 percent of middle class Americans. Folks who need it and deserve it. I want to give tax breaks to the small businesses that create more than two-thirds of our jobs. That's how we'll strengthen our economy. That's how we'll grow our economy again, from the bottom up." (Barack Obama remarks at campaign event in Roanoke, Va., Oct. 17, 2008)
"I think everybody understands at this point that we are experiencing the worst financial crisis since the Great Depression. And the financial rescue plan that Senator McCain and I supported is an important first step. And I pushed for some core principles: making sure that taxpayer can get their money back if they're putting money up. Making sure that CEOs are not enriching themselves through this process. And I think that it's going to take some time to work itself out. But what we haven't yet seen is a rescue package for the middle class. Because the fundamentals of the economy were weak even before this latest crisis." (Barack Obama at 3rd presidential debate in Hempstead, N.Y., Oct. 15, 2008)
"The McCain-Palin tax cut is the real thing. We're going to double the child reduction for every family in America. We'll cut the capital gains tax. And we'll cut business taxes to help create jobs and keep American businesses in America" (John McCain remarks at campaign event in Bensalem, Pa., Oct. 21, 2008)
"I have a plan to let retirees and people nearing retirement keep their money in their retirement accounts longer so they can rebuild their savings. I have a plan to hold the line on taxes and cut them to make America more competitive and create jobs here at home. Raising taxes makes a bad economy much worse. Keeping taxes low creates jobs, keeps money in your hands, and strengthens your economy." (John McCain remarks at campaign event in Belton, Mo., Oct. 20, 2008)
"I'm going to make government live on a budget just like you do. I'll freeze government spending. I'll freeze government spending on all but the most important programs like defense, veterans' care, Social Security and health care, until we scrub every single government program and get rid of the ones that aren't working for the American people." (John McCain remarks at Downington, Pa., Oct. 16, 2008)
Comments
Where are all of the banking deregulation bills that McCain has consistently voted for (and that have caused the financial mess the US is in) during his years in the Senate?
This is such a good service. But you neglect to list Foreign Affairs, and World Terrorism, as important issues. We seem to have forgotten we're under attack, and neither candidate's passion and positions on what we need to do have been front and center, where they should be. If you can help smoke 'em out, please do!
Thanks, Randolph. This feature will be added to over the next 12 days, so check back to see what other issues Greg addresses!
Dear Joe, you can't blame one person - or Congress for that matter - for the mess the banks are in. Their greed alone is the reason they are in trouble!
Campaign talking points......no analysis...what about Obama's income distribution? Obama proposes a leftist agenda.....don't try to fool your readers.
I would be more impressed by this if you included ALL the presidential candidates - not just the two who prove the point of the saying "Insanity is doing the same thing over & over and expecting different results." If you TRULY want "change", as both these candidates have been offering, vote for a different party.
Regina, wake up and smell the coffee! Obama's tax plan is merely to undo the changes made by Bush in 2001 and that is to reinstate the previous tax brackets that increases taxes for those making more than $250k. If you did your homework you would know that McCain voted against the Bush plan. In addition, the institution of tax brackets that increase with earnings has been around for quite some time, a lot longer than you and I or our parents have been around. However, we did not call this socialism until McCain spewed it out of his desparation to become President at any cost. Smarten up, will you!
Regina, thank you for regurgitating McCain's absolutely useless talking points. McCain's tax policy is nothing more than fear-mongering amongst individuals who have only a cursory understanding of the tax code. McCain's fixation on the marginal tax rates ("He wants to tax rich people more!") is, frankly, smoke and mirrors. Yes, it is true that Obama's tax plan would raise the marginal tax rate of those earning $250k a year back to the level it was during that immensely socialist period in American history - namely, uh....1997. However, the fixation on marginal tax rates is complete ridiculous. If you compared the effective tax rates (you know, what you *actually* pay to the IRS) - of a individual earning $300k a year who owns their home and itemizes deductions, their effective tax rate is almost assuredly lower than then worker who rents, earns $45,000 a year, and cannot afford to invest in the stock market. The tax code is littered with itemized goodies that almost always draw down the effective tax rates of those who are paying the highest marginal tax rate of 39.5%. That doesn't even take in to account any income garnered from capital gains, which is taxed at far lower rates than 'normal income'. And let's also not forget that Social Security (effectively, an additional 6.2% in tax) isn't levied on any income above $102,000 for the 2008 tax year, so anyone earning above that threshold is essentially pocketing a free tax cut. McCain's entire analysis of tax policy is about as juvenile as you can possibly get - and frankly, it contradicts many of the same positions he took from 2000 - 2003.
Trickle down economics did not work in the 1920s and will not work now. I am teaching the Great Depression now and some of my students tell me how much it sounds like what they are hearing on the news today. McCain wants to give tax breaks to big business and the rich. Obama wants to give tax breaks to the middle class - 95% of us.
I agree that this is great, so thank you. But it would have been particularly useful earlier on, especially if it included changes in the candidates' positions over time, a difficult task, for sure. I agree with GrendeIVS that including so-called third parties would have been useful, again, earlier on. Third-party candidates often present sensible and unvarnished views. We'd all be better served if they were included, particularly early in the campaigns.
Dear Editor: Please also add a section for technology policy. There are significant undecided issues in that area too that the next president will address.
If 95% of us get a tax break, then who is going to pay for programs that the government run. Isn't our tax money that pay for that? After all there is more of us then the rich, and if we don't pay then those programs will fall to the wayside. I would love a tax break but reality says we are the ones helping other with programs that are needed in this country. I for one won't vote for either as I don't trust either one. Big words and promises just to get our votes, how many promises will they keep once they are in office ? I wish someone would keep track of what they promise and just see how much things change once they are in office. " Oh my, I didn't know we wouldn't have the money to keep that promise" "They voted down what I wanted to implement" I for one will be glad when Nov 4 th comes and goes.
Louise, If 95% of us get a tax break than the tax burden is shifted to the other 5%. Basically they will see their taxes go up and it is that revenue that will pay for all the programs that we enjoy as americans. On your point I think it is true that many politicians do not follow-through, but keep in mind presidents are not all powerful and that the structure of government is to keep reform gradual and slow and that maintains much of the ugly status quo that we face. All the same, elections do matter, especially with regards to economic policy and supreme court nominations,and putting your head in the sand or throwing up your hands b/c all politicians are self-serving crooks only further empowers THEM. BTW my father-in-law makes @$300,000 a year and ran the numbers on Obama's plan. He would pay around $900 a year more in taxes. That is not a burden for him and I doubt that any small business that nets a quarter of a million a year is going to scale back b/c of a add'l $900 or deter them from making more and more profit. I hope one day I can aspire to an income high enough to qualify for an Obama tax increase. I will gladly pay it. I owe America, my country, for a lot of opportunities and am glad to help pay for programs and services that give others teh same opportunities as well.
Hasn't anyone taken a basic economics course? In your house, if you need to buy something, do you pay more upfront costs for a quality item? Or do you buy a cheaper version of the item and pay for repairs until eventually you have to replace the item, which now, due to inflation, costs more than the intial "higher" cost higher quality item? Those are the only two economic policies at play at any given time in any election. Government is always going to spend, though on what may vary over time, and tax payers are always going to, well, pay. So ask yourself, what kind of spender are you? Do you want to pay for the program or to fix the program now? OR do you want to pay small increasing increments for several years until you are left no choice but to pay for another $700 billion bailout later to fix or replace the program later?
Doesn't anyone realize that approximately 30% of the US population does not work or pay taxes. The math doesn't work if you are counting on being part of the 95% that Obama keeps talking about.
NKS - You have a point about federal income taxes, so would you be pleased if the numbers under Obama's plan would be 5% tax increase, 65% tax decrease, and 30% no change/no income tax. However, your blanket statement that 30% of the population pays no taxes is incorrect; most of them pay sales taxes, often property tax, etc. to state & local governments. Some of their money probably comes from government sources like FICA & Veterans disability pay, welfare payments, etc.
Everyone seems to forget that McCain has promised to tax employer provided healthcare benefits. That is a TAX. Probably on the order of $3000 per average household, or higher for double-income households in higher brackets. This is aimed right at the middle class. A fundamental difference in approach. If you are a teacher or state worker with one of those golden health plans, the tax hit is likely to be even higher. No teacher in their right mind should support McCain unless they love giving more money to Uncle Sam. McCain can cry wolf all he likes, but the real wolf in the den is wearing red, not blue. So if you have a health plan, YOUR TAXES ARE GOING UP UNDER MCCAIN. On the other hand if you are wealthy enough to have capital gains (with the Dow near 8000, seems a stretch of the imagination), your tax rate will go down. Middle class, wake up and smell the coffee. John McCain is gunning for you.
this has nothing to do with economy but... wasn't Obama's speech OMG!?!
also, this is a free country so... I think McCain has SUCH the bad temper...
To: ann Me to! I'm such the Obama supporter!And I agree about McCain. At the second debate he called Obama "'that thing'"!!!!!!!!!!!!!!!!!! Anyone else?
To: sherry I'm undecided.
did Senator Biden propose reinstituting the DRAFT - in a speech about 2 weeks ago -along with his "within 6 months" warning ???
to moses: i think so...
I think Obama's hot...
@spaz If ur undecided, check out electoralcompass.com. You can just answer questions on for example tax raises and it shows u who u should vote for :)
I strongly agree with Chuck Baldwin's plan to search for this Nation's hidden wealth. Sadly, his plan cannot go through unless he is elected president. For some reason, digging behind Mt. Rushmore is not legal for those without governmental power. If Mr. Baldwin is elected, archeologists like myself will be allowed to search for treasure legally. BALDWIN - CASTLE 2008!
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