Which candidate has the best economic plan for the US?

Question

Which candidate has the best economic plan for the US? Does Obama or McCain have better economic strategy; I want to hear what you think and am open to your responses (I enjoy hearing well-argued statements, points etc). Thanks and I look forward to your responses.

Answer 1

The problem with McCain's tax cuts are that are primarily income tax cuts whose benefits fall mainly on the real wealthy. This will do nothing to stimulate economic activity, since these people are already wealthy and will likely just save the money. Instead of income tax cuts he could have, say an employment tax cut, or a tax cut to invest in their business, then that might be economically positive in a limited way. McCain has suggested lowering the capital gains tax, but most people capital gains are not new investments, but simply trading old investments, which has no effect on economic activity.

There is actually a worse thing that happens when you cut taxes and don't cut spending (and McCain has been very bad at explaining his cuts, which likely won't happen). Then you get a huge deficit, falling dollar, and you have problems because right now the Chinese are some of the few that remain that want to buy our debt.

Obama's tax cut plan is a sensible compromise - raise taxes on the wealthy, give some tax relief to the  middle class, and lower capital gains for small business. The middle class tax cut will stimulate demand, and the investment tax credit is targeted to businesses that may want to actually purchase new investments.