He “admits”:http://www.boston.com/news/politics/politicalintelligence/2007/12/mccain_its_abou.html he doesn’t know much about economics, but true to Republican form, “McCain knows taxes”:http://www.bizjournals.com/pittsburgh/stories/2008/04/14/daily13.html. He says if he’s elected he’d:
Suspend gas taxes from Memorial Day to Labor Day. That would cut “13%”:http://troyandgay.com/blog/2008/03/20/in-defense-of-exxon/, or 46¢, off a gallon of gas during the summer driving season. It’s debatable whether this will work. When prices drop, people consume more. When demand rises, prices rise. If demand for gas increases, prices will rise again. People will get to take the vacation or do their jobs, which is good, but will the rise in prices offset the drop in taxes? And without gas tax revenue, will the quality of our roads decrease? Gas prices are high because OPEC artificially controls supply and Americans love to use gas. Suspending gas taxes won’t affect supply at all and may increase the love of using gas. I’d argue it’s better and safer to encourage people to fly than to drive on vacations.
Raise the tax exemption for each child from $3,500 to $7,000. I spend more than $3,500/year on groceries which are not taxed in Washington State, so I get a bigger tax break from buying food than I do from providing for a kid. $7,000 is more reasonable.
End the “Alternative Minimum Tax”:http://en.wikipedia.org/wiki/Alternative_Minimum_Tax which has been hitting the middle-class in recent years even though it was originally intended to add a tax to the wealthiest households. Ending the AMT benefits wealthy people the most, but it’s a contrived tax anyway and should be ended.
Cut employment tax from 35% to 25%, which is a great incentive to get companies to hire more people and be more productive (assuming they don’t hire dummies).
Best of all, he understands that “opening new markets for American goods and services is indispensable to our future prosperity” which the Democrats don’t understand. I still could never bring myself to vote for a Republican and endorse their (anti-)social ideals they are so proud of, but at least McCain has some good points.