Obama: Big Plans, Big Spending
McCain: Low Taxes, Less Government
Obama On Taxes
Obama Promises: Plans a $1,000 tax cut for 95% of families, while boosting income, capital gains and dividend taxes for those earning more than $250,000. Will target corporate breaks, too.
What's Likely: Increased taxes for high-end earners are all but guaranteed, but getting all he wants on the corporate side could be tough. Some middle class cuts may have to be shelved.
McCain on Taxes
McCain Promises: Would extend all the Bush tax cuts, keep the current capital gains tax, trim the alternative minimum tax, double the value of exemptions for dependents, and slash corporate rates.
What's Likely: Such cuts could significantly boost the deficit and give much bigger breaks to high-end earners than lower or middle class families. A Dem Congress will likely balk.
Obama on Economic Stimulus
Obama Promises: Backs $50 billion in aid for infrastructure and to help communities hit by the downturn, plus $1,000 family rebates to offset energy costs.
What's Likely: The cost of immediate stimulus could force cutbacks in other priorities.
McCain on Economic Stimulus
McCain Promises: Would give time for current stimulus measures to play out through the economy before going ahead with further moves.
What's Likely: If the economy continues to decline or the fallout from the housing crisis worsens, McCain, too, may consider further stimulus.
Obama on the Deficit
Obama Promises: Says he'll bring the deficit down from projected level of $500 billion by balancing social welfare plans with tax hikes or spending cuts elsewhere.
What's Likely: The revenue sources and spending cuts Obama is counting may not be enough to contain the deficit and pay for new spending.
McCain on the Deficit
McCain Promises: Promises to balance the budget by the end of his first term by slashing wasteful spending, trimming discretionary outlays, and closing tax loopholes.
What's Likely: Most budget experts are highly skeptical he can achieve this, particularly if he is able to win big tax cuts.
Obama on Energy
Obama Promises: Would tap the Strategic Oil Reserve to cut gas prices and spend $150 billion to develop alternative energy and help automakers and others develop fuel-efficient technology. Backs a windfall profits tax on oil companies.
What's Likely: His plans to fund alternative energy development by essentially taxing utilities and others that emit greenhouse gases could face heavy opposition; the outlook for a windfall profits tax is also uncertain.
McCain on Energy
McCain Promises: Calls for suspending the 18.4¢-a-gallon federal gas tax and ending restrictions on offshore drilling. Backs aggressive expansion of nuclear power along with modest measures to boost clean coal and alternative energy.
What's Likely: Support for offshore drilling is growing, but Congress so far has shown little interest in suspending the gas tax. Nukes remain a question as long as a solution to waste disposal is unavailable.
Obama on Healthcare
Obama Promises: Proposes spending $65 billion a year to give coverage to the uninsured. Says better management and cost controls would also cut premiums by $2,500 for the average family.
What's Likely: The high price tag, particularly in the face of growing deficits, could lead the proposals to be scaled back. And getting all the proposed savings could be tough.
McCain on Healthcare
McCain Promises: Would give families a $5,000 tax credit to offset the cost of buying insurance and spur more competition. Argues the move, along with improved management, will trim costs.
What's Likely: Spurring the private sector alone may not be enough to cover the uninsured. And those with insurance from their employer will be taxed on that benefit. A tough sell.
