McCain, Obama and the economy

October 30, 2008 9:05:25 PM PDT
The candidates and their plans for the economy.The anchor of McCain's recovery plan is a $300 billion federal program to buy up foreclosed mortgages. People could stay in their homes, with a new fixed-rate, government-backed mortgage set to their home's current value.

Obama would insist on a three month foreclosure moratorium on seizing homes by lenders who got government bailout aid, as long as people paid something on their note

Both candidates would temporarily suspend rules that force people over 70 to sell stock and make withdrawals from their retirement accounts. For those who do go ahead with the payouts, Obama would also exempt them from some taxes.

People under 59 who tap these accounts are usually hit with high taxes and a penalty. This year and next, McCain would let people take out up to $50,000 at a 10% tax rate. Obama would allow withdrawals of 15% of the account, up to $10,000, taxed at the normal rate but with no penalty.

McCain insists his corporate tax cuts will push business to hire more workers. He also says his push for 45 new nuclear plants would create 700,000 jobs.

Obama claims his $150 billion, 10 year investment in alternative energy, like wind and solar power, would create 5 million jobs. And for the next two years, he'd also give companies a $3000 tax credit for each new hire.


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