Sen. John McCain’s economic plan, which focuses on foreclosure prevention, growing the economy and controlling spending, has received mixed reviews.
Billions in Tax Cuts Proposed
McCain’s economic plan, unveiled Tuesday, calls for $52.5 billion in tax cuts, mostly to older Americans, the Wall Street Journal reported. A big chunk of the plan calls for dropping the rate at which money withdrawn from 401(k) retirement plans or individual retirement accounts is taxed. That tax reduction would only apply to senior citizens, and only for the first $50,000 taken from such accounts in 2009 and 2010.
“Retirees have suffered enough and need relief, and the surest relief is to let them keep more of their own savings,” McCain told supporters at a Tuesday rally outside Philadelphia, according to the Journal.
Another part of the plan is to tax capital gains at 7.5 percent instead of the current 15 percent next year and in 2010, the Journal said.