Highlights of Obama’s economic plan:
– A $50B stimulus package
–Tax cut for the 90 percent of Americans making less than $250,000 a year
– A $1K tax rebate for 95 percent of workers and their families
– Eliminate income taxes entirely for seniors making less than $50K
– A $4K college tax credit
– Eliminate capital gains taxes for small businesses and start-up companies
– And a promise to “cut health care costs by $2,500 annually for the typical family”
Barack Obama Economic Plan
An Agenda for Middle-Class Success
Press Avail
Monday, July 7th, 2008
St. Louis, Missouri
As prepared for delivery
Since we had to change venues this morning, I just want to speak briefly about the economy for a few minutes and then I’ll take your questions.
This is going to be a defining issue in this campaign, because Senator McCain and I have very different views of where our economy is today, and where we need to go.
Senator McCain said earlier this year that America has made “great progress economically” over the past eight years. He believes we’re on the right track, and he’s launching a new economic tour today with policies that are very much the same as those we have seen from the Bush Administration.
In fact, the central component of Senator McCain’s economic plan is $300 billion more in tax cuts for big corporations and multimillionaires – less than a quarter of which will benefit the 80% of American families that make up the bulk of our middle-class. Less than a quarter.
Under Senator McCain’s economic plan, Exxon Mobil – a company that recently reported the biggest profit in history – would get $1.2 billion in tax breaks, while less than a quarter of the benefits would go to the middle-class. What’s worse – he has no concrete plan to pay for these tax breaks, so his policies would actually add more than $2 or $3 trillion to the national debt over the next decade and weaken our economy even further. If this sounds familiar, it’s because it’s exactly what George Bush has done for the last eight years
Now, I won’t stand here and pretend that we can or should undo the economic transformations that have taken place over the last few decades. There are jobs that aren’t coming back and this world will always be more competitive. But I do believe that if all of us are willing to share the burdens and benefits of this new economy, then all of us will prosper – not just because government makes it so, but because we’re willing to take responsibility as individuals to work harder and think more and innovate further.
Last week I outlined an agenda to keep America competitive by providing all Americans with a world-class education, investing in researching and innovation, devising an energy policy that creates job and reduces our oil dependence, and making sure that our trade policies work for American workers.
But today I want to talk about my plan to not only ensure the economic security of middle-class families in the short-term, but to give them the chance to achieve economic success in the long-term; to make sure that Americans aren’t just getting by, but getting ahead – that they’re able to get a world-class education, build a nest egg and provide a better life for their children.
The first step is to offer immediate relief to families who are struggling right now while helping to jumpstart economic growth and create jobs. Between a sluggish economy and gas prices rising above $4 a gallon, the American people cannot wait another six months for help. Instead of Washington gimmicks like a three-month gas tax holiday that will only pad oil company profits, we need to do what I called for months ago and pass a second stimulus package that provides energy rebate checks for working families, a fund to help families avoid foreclosure, and increased assistance for states that have been hard-hit by the economic downturn. A few days ago I called on Senator McCain and all members of Congress to come together – Republicans and Democrats – in support of this $50 billion stimulus package. There are many policies we’ll disagree on, but immediate relief for families who are struggling shouldn’t be one of them. And so while I haven’t received a response from Senator McCain yet, I look forward to hearing one soon.
The second step in my agenda is to help provide economic security for families who’ve been dealing with skyrocketing costs and stagnant wages for years. I believe it’s time to reform our tax code so that it rewards work and not just wealth. So when I’m President, I’ll shut down the corporate loopholes and tax havens, and I’ll use the money to help pay for a middle-class tax cut that will provide $1,000 of relief to 95% of workers and their families. We’ll also eliminate income taxes for every retiree making less than $50,000 per year, because every senior deserves to live out their life in dignity and respect.
And if Senator McCain wants a debate about taxes in this campaign, that’s a debate I’m happy to have. Because if you’re a family making less than $250,000, my plan will not raise your taxes – not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes. In fact, what Senator McCain should explain is why his tax cut for the middle class would leave out 101 million households, and why, for families that are lucky enough to get the tax cut, it would be worth only about $125 in the first year. The difference is – he trusts that prosperity will trickle down from corporations and the wealthiest few to everyone else. I believe that it’s the hard work of middle-class Americans that fuels this nation’s prosperity.
I’ll also help families who are struggling under the crushing burden of health care costs by passing a plan that brings the typical family’s premiums down by $2500 and guarantees coverage to everyone who wants it. Senator McCain’s health care plan not only fails to cover every American and holds out less hope of cutting health care costs, it would actually tax your health care benefits for the first time ever. Over time this tax would grow and after just a few years it would be so large that middle-class families would face an overall tax increase from his plans. So that is a real choice in this election.
As we help families deal with rising costs, we also have to help those families who find themselves mired in credit card debt. That’s why I’ll establish a Credit Card Bill of Rights that will ban unilateral changes to credit card agreements; ban rate hikes on debt people already had; and ban interest charges on late fees. I’ll also reform our bankruptcy laws to make sure that if you can demonstrate that you went bankrupt because of medical expenses, you can relieve that debt and get back on your feet.
But even as we take these steps, we also know that it’s not enough to just get families back on their feet. We need to help hardworking families get ahead. That’s why the third step in my agenda is to give families the help they need to build that nest egg and provide a better life for their children.
To make saving easier, we’ll automatically enroll every worker in a workplace pension plan that stays with you from job to job. And for working families who earn under $75,000, we will start that nest egg by matching 50 percent of the first $1,000 you save and depositing it directly into their account.
To make a college education affordable for every American family, we’ll provide $4,000 of tuition if students will provide community or national service when they graduate. To make it easier for families to own their own home and stay in that home, we’ll crack down on predatory lenders, help more Americans refinance their mortgages, and provide ten million homeowners a mortgage tax credit that will take ten percent off their interest rate.
To help those mothers and fathers who are juggling work and family, I’ll expand the Child Care Tax Credit, extend the Family Medical Leave Act, and make sure that every worker in America has access to seven days of paid sick leave. I’ll make sure that women get equal pay for an equal day’s work. And to help those families who own small businesses that are the engine of prosperity in America, I will eliminate all capital gains taxes on start-ups and small businesses to encourage more innovation and job creation.
There is no doubt that this agenda is ambitious. It will take resources in the wake of policies our debt like a war in Iraq that’s costing us $10 billion a month. But the answer to our fiscal problems is not to short-change investments that will help our families get ahead – investments that are vital to our long-term growth as a nation. The answer is to make sure that we are finding a way to pay for these investments but cutting where we can. My plan is detailed and specific when it comes to cutting spending. In fact, all my new spending proposals would be more than paid for by spending reductions. I have a plan to responsibly end the war in Iraq and reduce overpayments for private plans in Medicare, something John McCain has no specific plan to do. I would also curb subsidies to banks making student loans, return earmarks to their 2001 levels and reform no-bid contracts. I do this because I believe we can have a smarter government that pays its way while investing in our country’s future.
