McCain unveils economic plan

By J.R. Hoeft

Getting economists to agree is a challenge in and of itself. Getting Nobel prize winning economists, American Economic Association presidents, U.S. Treasury secretaries and under secretaries, OMB Directors, members of the President’s Council of Economic Advisors, Congressional Budget Office directors, and more economists from the academic and business community to the tune of over 300 is quite another.

However, Sen. John McCain’s plan to revitalize the economy has economists from all across the country singing its praises:

“His plan would control government spending by vetoing every bill with earmarks, implementing a constitutionally valid line-item veto, pausing non-military discretionary government spending programs for one year to stop their explosive growth and place accountability on federal government agencies.

“His plan would keep taxes from rising, because higher tax rates are exactly the wrong policy to restore economic growth, especially at this time.

“His plan would reduce tax rates by cutting the tax that corporations pay to 25 percent in line with other countries, by completely phasing out the alternative minimum tax, by increasing the exemption for dependents, by permitting the first-year expensing of new equipment and technology, and by making permanent a reformed tax credit for R&D.

“His plan would also create a new and much simpler tax system and give Americans a free choice of whether to pay taxes under that simple system or the current complex and burdensome income tax.

“His plan would open new markets for American goods and services and thereby create additional jobs for Americans by supporting good free trade agreements, such as the one with Colombia, and working with leaders around the world to avoid isolationism and protectionism. His plan would also reform education, retraining, and other assistance programs so they better help those displaced by trade and other changes in the economy. His plan addresses problems in the financial markets and housing markets by calling for increased transparency and accountability, by targeted assistance to deserving homeowners to refinance their mortgages, and by opposing so-called reform plans which would raise the costs of home-ownership in the future.

“The above actions, as well as plans to address entitlement programs — especially Social Security, Medicare and other government health care programs — and his regulatory reforms — especially in the area of health care — constitute a broad and powerful economic agenda. Because of John McCain’s experience working with the American people in all walks of life, with members of Congress on both sides of the aisle, and with leaders around the world, we are optimistic that these plans will become a reality and will create jobs and restore confidence and strong economic growth.”

McCain also pledged to balance the budget in a speech in Denver today:

“We must also get government’s fiscal house in order. American workers and families pay their bills and balance their budgets, and I will demand the same of the government. A government that spends wisely and balances its budget is a catalyst for economic growth and the creation of good and secure jobs.”