McCain's economic plan: older than McCain himself

The McCain campaign, depending on which McCain campaign person you ask may or may not be poised to announce his economic plan today, and if the details that have been leaked are true, there’s little ‘new’ stuff in it.

McCain campaign manager Denis Holtz-Eakin said McCain's proposal is “targeted at people who have been hurt by the recent financial crisis — seniors, savers, workers, people who are trying to get to college.”

Really? McCain wants to help people in the middle-class, I’m skeptical, but I’m listening… what are the proposals?

“…a 50 per cent reduction in the capital gains tax on stock profits, from the current 15 per cent to 7.5 per cent, for a period of two years, at an estimated cost of $10 billion; an acceleration in the tax write-off for stock losses, allowing Americans to deduct $15,000 in losses a year for the tax years 2008 and 2009.”

A 50% reduction in… in capital gains… really? That’s McCain’s big economic plan, reducing capital gains… this plan isn't new… in fact it’s almost as old as McCain.

And I don’t mean to nitpick but what capital gains are McCain speaking of? Before you can get capital gains don’t you have to have, you know, capital? And with the markets down 30% and more over the past year, the only people to recoup capital gains taxes would be those that have been holding large blocks of stock for years and... ohhh now I get it.

This is one of the oldest tricks in the republican playbook: cynically manipulate a crisis to push through the most radical of measures.

According to the Wonk Room’s James Kvaal, the impact of cutting capital gains would look like this; “Households earning less than $50,000 a year collected a mere 2.5 percent of capital gains in 2005, according to the Tax Policy Center. Families earning more than $1 million a year collected 59 percent of capital gains. Moreover, most middle-class families with capital gains hold their investments in retirement accounts shielded against capital gains taxes.”

For someone that’s already promising massive tax cuts for corporations and a staggering $4 billion in tax cuts for for oil companies, handing out a new tax cut for millionaires and calling it a “Pension And Family Security” with the beard of helping people that are “hurting the most” is insulting to everyone with a brain.

And how will McCain pay for these tax cuts? One would think a presidential candidate would be able to tell the voters how he would pay for something this massive (as Obama did yesterday with his economic plan), but the McCain campaign apparently doesn’t.

At the least spokesperson Nancy Pfotenhauer is stumped about how much those new tax cuts would cost and how McCain plan to pay for them, saying; “Obviously…it’s going to cost some amount of money,”

Well DUHHHHHHH… thanks for that brilliant insight Nancy… to get that kind of insight usually you need to slide a quarter into some kind of slot and wait for a mechanical fortune teller to tell you what your future holds.

I can see clearly that a future with a McPalin administration would be a disaster on epic proportions, not unlike the last eight years with commander cuckoo-bananas in charge.

The Only possiBle candidAte to vote for is pretty daMn clear if you Ask me… and Because of thIs, we neeD to gEt out and vote on ElectioN Day…

UPDATE: Apparently some of McCain’s advisers are unsure if McCain was scheduled to unveil his economic plan today. If people within his own campaign don’t know what the hell the campaign is doing, how the hell would the country look after four years of him?

The Weekly Rewind

Greetings loyal readers. Unless you are living under a rock, you know that we are coming up on two more important primaries this Tuesday. So instead of beating you over the head with anything primary related, lets take a look at some of the other news items you may have missed. Here is a little piece we like to call The Weekly Rewind.

Heckle: to stirring up the rhetoric to justify another ‘war’. U.S. and Iraqi security forces in Baghdad “have been targeted with 251 improvised bombs this month — nearly double the monthly average — as fighting in and around Sadr City intensified.” U.S. Army Brig. Gen. Mike Milano said that “some of the attacks involved deadly armor-piercing bombs that the U.S. military has linked to Iran.” Here is an idea, stick to the facts and the truth. If Iran is involved, obtain solid prrof and then we can deal with it. Otherwise stop twisting our troop casualties to fit your warped views.

Heckle: to running unrestrained. With Americans facing record levels of credit card debt, financial institutions have sharply raised rates for credit card customers — even those who pay on time — as they grapple with losses from other bad consumer loans. Banks are also imposing higher fees for late payments and ATM withdrawals to boost profits. Leave it to the financial sector to once again find ways to screw the American public for their own greed. The economy is in bad shape and the faster everyone acknowledges that and pays heed, the better off we will be when the inevitable happens.

Heckle: to another area of the financial sector screwing us. As the Federal Reserve completes work on rules to root out abuses by mortgage lenders, the mortgage industry has begun an intensive campaign to fight back. The industry’s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans. Once again, the administration shows it’s contempt for the average American, in favor of big business. Does anyone truly think that a McCain administration would be any different?

Heckle: to your own words biting you in the ass. Three years before Sen. John McCain (R-AZ) was arguing for a 100 year presence in Iraq, he told MSNBC, “I would hope that we could bring them all home.” “I think one of our big problems has been the fact that many Iraqis resent American military presence,” McCain said. “[A]s soon as we can reduce our visibility as much as possible, the better I think it is going to be.” Excuse me Senator, would you like a swimsuit to go with those flip-flops?

Heckle: to the continuing erosion of the American dream. “Home foreclosure filings jumped 23 percent in the first quarter…and more than doubled from a year a earlier,” according to new RealtyTrac data. “One of every 194 households received a notice of default, auction sale or bank repossession between January and March, for the seventh straight quarter of rising foreclosure activity.” But remember, we are only in an economic slowdown….

Applaud: to another reason we respect him. In remarks made in Kansas City, former Secretary of State Colin Powell said that “the military was being stretched and a lot was being asked of the all-volunteer force at a time when the entire country isn’t committed to war,” the AP reports. “I think it would be hard to respond to another crisis if it was like these two,” Powell said. Thank you Mr. Secretary for saying what more people with influence need to say.

Applaud: to putting the info out for all to see. A report by the Special Inspector General for Iraq predicts that “Iraq’s oil revenue will top a record $70 billion this year, adding fuel to a congressional push to force the Iraqi government to assume more responsibility for rebuilding the country.” “The cost of a barrel of Iraqi oil has increased by 250% since 2003.” You know I wish I would have thought of this before….oh wait a minute I did. Let’s stop footing the bill and keep some of our tax dollars back here in this country where they are needed.

Applaud: to taking some of the wind out of the sails of a litigious society. The Supreme Court’s recent rulings upholding Indiana’s voter ID law and Kentucky’s use of lethal injections exemplify a shift in the court’s approach to deciding constitutional questions. By rejecting broad legal challenges, the court is sending the message that legal advocates need to “produce evidence that a law has actually violated someone’s rights” rather than asserting that rights could be violated. Maybe now we can stop making laws to ‘protect the stupid’ just because they ‘might’ do something dumb….stupid should hurt.

Heckle: to a possible employment related ‘ponzi’ scheme. According to the Bureau of Labor Statistics, “Federal, state and local governments are hiring new workers at the fastest pace in six years, helping offset job losses in the private sector,” adding “76,800 jobs in the first three months of 2008.” By contrast, “private companies collectively shed 286,000 workers in the first three months of 2008″ leading “many economists to declare the country is in a recession.” Do we really need that many more people on the government payrolls? Hmmmm, could it be that the administration is actively working to ‘artificially’ lower the unemployment rate? Something to think about..

Heckle: to saying what you mean and meaning what you say. Though he’s promised to not raise taxes, Sen. John McCain’s (R-AZ) campaign acknowledged yesterday “that the health plan he outlined this week would” effectively increase tax payments for some workers, primarily those with high incomes and expensive health plans.” The campaign will not yet say “how many taxpayers might see their taxes go up.” I am sure they are hoping this will go away quietly.

Heckle: to a steaming pile. This week marked the fifth anniversary of President Bush’s infamous “Mission Accomplished” moment aboard the U.S.S. Abraham Lincoln. Editor and Publisher takes a look at the back at the media coverage on May 1, 2003, when reporters rushed to report that the Bush administration was “planning to withdraw most United States combat forces from Iraq over the next several months.” And now that the American people are asking why we are still there fighting after 5 years the WH is trying to say that the banner was only meant for the troops on the ship…..Bull**it….sorry I had to cough.

Heckle: to another indicator of a faltering economy. Auto loan delinquency in the United States “hit a 17-year high in the fourth quarter of 2007, according to the American Bankers Association. Some 3.13 percent of car loans were “overdue 30 days or more.” Edmunds.com, which provides automotive information, estimates that nearly a fourth of borrowers are ‘upside down‘ in their car loans, meaning the car is worth less than the loan balance. Sounds very similar to…..anyone…..yes that’s right, the real estate market. Watch, the next story will be about the large increase in the number of automobile repossessions. Which also sounds very similar to …..anyone….yes, that’s right the real estate market. But remember, we are only in an economic slowdown…

And Finally, at his final White House correspondents’ dinner on Saturday, President Bush poked fun at his potential successors. Explaining why none had attended the dinner, the ‘President’ said Sen. John McCain (R-AZ) “probably wanted to distance himself from me,” adding that “Hillary Clinton couldn’t get in because of sniper fire and Senator Obama’s at church.” Sorry, I think they all wanted to distance themselves from you. Kind of like Southern Methodist University does by voting to prevent your future Presidential Library from being built on their campus. Wow, when the Methodists don’t want to have anything to do with you….

That’s it folks.

Be good, stay informed….later.

The Weekly Rewind

Happy Saturday everyone. Things are heating up in the political landscape and my esteemed collegue has, as always, done an excellant job of capturing events as they unfold. So let's not beat the dead horse, instead let's look back at some of the past weeks events in what we like to call 'The Weekly Rewind'.

Applaud: to the Governator. In response to the Presidents plan to allow U.S. carbon emmissions to remain unchecked until 2025, Gov. Arnold Schwarzenegger (R-CA) responded “this administration is just not really with the program”. He further commented, "We have to go and make decisions today. Time is running out there’s an urgency there." I commend the Governor for speaking his mind and not blindly following the party rhetoric.

Heckle: to showing your intellect to be in line with Dumbya. In discussing his gas tax repeal plan, presumptive Republican Presidential Candidate Sen. John McCain (R-AZ) stated that “a lot of our problems today” are “psychological” — even the “ability to keep our own home." I know that I am not the only person who sees this guy as 4 more years of what we have or worse?

Heckle: Yeah sure it's psychologcal. A new AP poll says that 60 percent of the public say “they definitely won’t buy a home in the next two years, up from 53 percent who said so in an AP-AOL poll in September 2006,” the latest sign of increasing pessimism about the nation’s housing crisis. Just 11 percent are certain or very likely to buy soon, down from 15 percent two years ago. Tell me again how we are not in a recession?

Heckle: Hello pot, this is the kettle..... following Sen. Barack Obama's comments regarding the citizens of Pennsylvania being bitter due to the economic hardships that have befallen them over the past 7 years, Sen. Hillary Clinton (D-NY) called the Senator 'elistist' and out of touch. Hello!? This is coming from a person whose income (combined with her husband) over the past 7 years is in excess of $100 million. I'm sorry, whose the elitist!?

Heckle: to sad but truthfully telling statistics. The Defense Department released its latest American military causality numbers for Iraq and Afghanistan, “and the figures reveal non-fatal casualties that go well beyond the more than 4,000 U.S. troops who have died so far.” As of April 5, 4,492 soldiers have died while serving in the two wars while 31,590 have been wounded and 38,631 have been removed from the battlefields for “non-hostile-related medical air transports.”

Applaud: to the opening of more peoples eyes. A new Washington Post/ABC News poll found that 70 percent of Americans disapprove of President Bush’s handling of the economy, an all-time high for that poll. “Bush’s overall rating stands at 33 percent, a percentage point above his all-time low in Post-ABC polling.” It’s amazing to me that this guy has not been impeached yet.

Heckle: to more proof of a failing economy. “Home foreclosure filings surged 57 percent in the 12 month-period ended in March and bank repossessions soared 129 percent from a year ago,” according to real estate data firm RealtyTrac. “For the month of March, foreclosure filings, default notices, auction sale notices and bank repossessions rose 5 percent.” Unfortunately this is going to get worse, before it gets better.

Heckle: to a wolf in sheeps clothing. Sen. Joe Lieberman (I-CT) may give a keynote address at the Republican National Convention in September “on behalf of Sen. John McCain (R-AZ)” “If Sen. McCain, who I support so strongly, asked me to do it, if he thinks it will help him, I will,” Lieberman told The Hill. Though McCain has yet to ask, “a Lieberman aide” says “it is a ‘likely possibility’ he will address the Republican audience in some form.” You know Kemp and I called this one about 2 ½ years ago.

Heckle: to even more proof of a failing economy. With Americans focusing on the increasing job losses, the less-noticeable shrinking of hours and pay for millions of workers around the country appears to be a bigger contributor to the decline of the economy. Total hours worked dropped last month compared to six months earlier, the first such drop since February 2001, when the economy was on the doorstep of recession.

Heckle: to screwing our troops. John McCain’s opposition to the GI Bill appears to be rooted in a concern “that a generous education benefit would persuade soldiers and Marines ending their tours to pursue an education rather than reenlist in the overstretched military.” “He’s the odd man out,” VoteVets chairman Jon Soltz said of McCain. “You have 55 co-sponsors on this bill, and he’s not one of them. He has to lead or follow.” And with the Senators background you would think he would be first in line to support the troops.

Applaud: to the will of the people. According to a new Washington Post-ABC poll, nine in 10 Americans “now give the economy a negative rating, with a majority saying it is in ‘poor’ shape, the most to say so in more than 15 years.” Moreover, more than 60 percent reject “the notion that the United States needs to win” in Iraq “to effectively battle terrorism,” and “56 percent of Americans say the United States should withdraw.” Is the White House listening? I highly doubt it….

And finally.

Heckle: to getting your priorities straight. The Academy Awards planned to announce its 2009 Oscar nominees on Jan. 20. However it has moved the ceremony to Jan. 22, since the presidential inauguration will also be on Jan. 20. Which itself is fine, except for Andrew Malcolm of the Los Angeles Times who whines, I mean writes, “It isn’t enough that the country must endure about 24 months of political blather and rhetorical positioning to choose the next leader of the free world. … But now the world must wait an extra 48 hours — 48! — to learn who’s been nominated to receive an Oscar. The outrage.” Big whoop de friggin do! So the world has to wait another 2 days to find out this drivel. Who cares? Some people really need to get their priorities in line with being an adult.

Be good, stay informed…..later.

The Weekly Rewind

Well this has sure been one hell of a week. The Democratic candidates have been going after each other which can only serve to help the Republicans in the general election. The economy is still heading down the crapper. You know the usual stuff. Enough of the stuff you already know painfully well, let’s get to some things that may have been overlooked.

Heckle: to flip flops. Sen. John McCain (R-AZ) likes to present himself as the candidate of the ‘Straight Talk Express’ who does not pander to voters or change his positions. But the record shows that McCain has changed his mind on issues such as the Bush tax cuts, immigration, torture and abortion. Sounds like the ‘Striaght Talk Express’ has taken quite a few turns.

Applaud: to delicious irony. Back in 2000, a US Senate candidate said that was “frankly disturbing” that her opponent, Rick Lazio, refused to release his tax returns, this candidate then sent a man dressed as Uncle Sam to protest at Lazio events.. .that candidate’s name was… Hillary Clinton. Sometimes the irony is so thick you need a chainsaw to cut through it…

Heckle: to the sucking sound that is the economic black hole getting larger. College students nationwide will begin to see higher costs for loans this spring, while others will be turned away by banks altogether as the credit crisis roiling the U.S. economy spreads. Over the past decade, student debt levels more than doubled to $19,200. College costs continue spiralling out of control and this is not going to help.

Heckle:to getting caught with your pants down and blaming it on Iran. Vanity Fair writes that the Bush administration’s plan to arm and train Palestinian fighters loyal to Palestinian Authority President Mahmoud Abbas backfired and led to the Hamas takeover of Gaza. Secretary of State Condoleezza Rice called the central premise of the article “ludicrous” and said it was necessary to counteract Iranian influence.

Applaud:to speaking the truth. Adopting a message that could help Democrats to portray themselves as protecting the military and national security, Congressional Democrats will argue that getting troops out of Iraq “is the only way to rebuild a spent military.”

Applaud:House Democrats said a civil lawsuit could be filed as early as this month that challenges the Bush administration’s claims of executive privilege in curtailing aides from testifying on Capitol Hill. Speaker Nancy Pelosi (D-CA) is pursing civil litigation because Attorney General Michael Mukasey refuses to enforce contempt citations against two White House aides. You know the administration is going to use this weasel 'executive privilege' any chance they can unless they are stopped now.

Applaud:Voters in two southern Vermont towns passed articles Tuesday calling for the indictment of President Bush and Vice President Cheney for violating the Constitution. More symbolic than substantive, the items sought to have police arrest Bush and Cheney if they ever visit Brattleboro or nearby Marlboro or to extradite them for prosecution elsewhere — if they’re not impeached first. You gotta applaud the gesture...

Heckle:talk about a dilema. If you want to prevent skin cancer, you don’t go to the beach. And if you want to avoid corruption, you don’t go to Vegas, right? Next month, however, Sin City will host Campaigns & Elections magazine’s two-day conference for lobbyists called “All Things Ethical.” Panels include “Using Phones Ethically” and “The Ethics of Deception.” It's like having an AA meeting at a brewery.

Heckle:get your boots on the crap is getting deeper. Yesterday, Sen. John McCain (R-AZ) said he does not “agree with [the] sentiment that there has been widespread corruption” in the Bush administration, suggesting he wouldn’t support independent investigations into the administration’s activities if elected. Sorry Senator that is the wrong way to try and grab the average American vote.

Applaud: to not letting this be hidden in the corner. Lawyers for Jamie Leigh Jones argued in federal court yesterday that her case should be “tried in court, not settled in private arbitration.” Jones is suing defense contractor KBR over an alleged gang rape she suffered in 2005, but the company insists her contract binds her to settle all claims through arbitration. KBR needs to taken to task over this issue and stop hiding behind some BS clause in their one sided employment agreement.

Applaud: to a new AP Poll, that shows more and more Americans are identifying themselves as Democrats, with a 7% jump since the primary season began… welcome to the club, we’ve got jackets.

Heckle: to being held to account for your actions. James Clark, the chief of staff under former Alaska Gov. Frank H. Murkowski (R), agreed yesterday “to plead guilty to concealing donations made to Mr. Murkowski’s 2006 re-election campaign” by the VECO Corporation, an oil company accused of bribing much of the Alaskan political establishment. Clark arranged for VECO to pay $68,500 without it being publicly disclosed. It's a start....


That's it for this week.

Be good, stay informed.....later.

If it walks, talks and looks like a recession.....it probably is!

In what should be a big eye opening concern for everyone, the Labor Department reports that job losses in February were the worst since March 2003. Watch for the 'Bush'-Whacked Administration to sweep this to the side and focus on the unemployment rate declining. They will tout this number while ignoring the fact that the drop is a purely statistical twist due to fewer people in the total workforce.

Another concern is that the RBC Cash Index reports that consumer confidence is at its lowest point in 6 years.

And hey, remember back in 2005 when a Republican Congress stuck it up the ass of the average American and changed the Bankruptcy laws?? Well guess what, personal bankruptcy filings are at the highest level since 2005!

add these on top of:

- Record Foreclosures

- Continuingly weak home sales

- Home Equity being upside down for the first time since 1945 !

Once again Mr. President, tell me how we are not in a recession?? Seems we need to redifine our view of what constitutes a recession.

Oh I forgot, the $600 to each taxpayer will cause the economy to surge ! yeah right....

Remain calm, all is well ! Yeah sure.....

Some observations-

- For the first time since 1945, on average, American homeowners equity in their homes has fallen below 50%. Which means that the amount of debt owed on their homes exceeds the amount of equity in the home.

- Foreclosures hit a new all time high in the 4th quarter of 2007. And the number of homeowners 30 days or more late making mortgage payments is at the highest level since 1985.

- Inflation fears are increasing, the dollar is continuing to fall against the Euro.

- The stock market continues to drop in response to warnings of bank / mortgage related layoffs and bankruptcy fears.

- Oil keeps going up because traders (aka:greed mongers) get scared every time some one blows their nose in a 3rd world country.

Now can you tell me again Mr. President how we are in a 'slowdown' with no danger of heading for a recession? Curious that actual financial experts say we are already there....

Remember, it doesn't really matter what the experts say, like a self-fulfilling prophecy, if a majority of average American's think we are in a recession......then we are ...

Hold on, the ride is just beginning.

UPDATE BY KEMP: If I may add to Scott's post here, consider that the Federal Reserve announced this afternoon that Americans’ percentage of equity in their homes "fell below 50 percent for the first time on record since 1945” that caused the Economy.com website to estimate that “8.8 million homeowners, or about 10.3 percent of homes, will have zero or negative equity by the end of the month.”

Interesting... I guess people just "built too many houses", huh? It’s the only possible explanation...

It's the economy stupid

Once again our fearless commander in chief is acting like we’re the idiots when, clearly, it’s him…

Appearing on NBC’s Today Show, this morning, “President” Bush denied that the there’s any link between the current recession and the Iraq war; he even went as far as to claim that the war is actually helping the economy.

That’s right, you heard me…

He said the war, the $10 billion were spending each month for the war, is helping the US economy… here’s the exchange between him and Ann Curry;

CURRY: You don’t agree with that? It has nothing do with the economy, the war — spending on the war? BUSH: I don’t think so. I think actually the spending in the war might help with jobs…because we’re buying equipment, and people are working. I think this economy is down because we built too many houses and the economy’s adjusting.

Too. Many. Houses? Seriously… that’s your reasoning Mr. Bush?

… it’s people like Bush that make me feel ashamed to have a MBA…

Sure, the war has created jobs for some companies (cough cough; Halliburton..,. cough cough Blackwater)… but over the five years since we invaded Iraq, unemployment has risen, with an increase of 13.6%.

That’s not even taking into consideration the fact that 68% of the American public believes that redeployment from Iraq would help fix the country’s economic woes.

Bush will never admit it because republicans are supposed to be about fiscal discipline, but he and his administration are anything BUT disciplined… in fact, they’re not only undisciplined but disruptive as well.

1/20/2009 can NOT come soon enough…

Poll Position: Approval & Economy

American Research Group published new poll results today, and it’s not good for “President” Bush as it shows his approval rating to be a lowly 25%....

I’ll pause a moment to let that sink in…

The 25% mark matches Bush’s lowest approval rating by the American Research Group.

And the bad news doesn’t end there.

In addition to the approval ratings, the poll also asked Americans about the economy, more specifically if the national economy is getting better.

It’s not…

8% of Americans say that the national economy is getting better, 18% say it is staying the same, and 69% say the national economy is getting worse.

And when they were asked if the national economy will be better a year from now, 18% say yes that is will, 27% say it will be the same as it is now, and 53% say it will be worse.

But the real tell is that a total of 38% of Americans rate the national economy as excellent, very good, or good… meaning that 61%, 61%! rate the national economy as bad, very bad, or terrible.

What does this mean? It means that the only people who believe the economy is doing good fall into one of two categories; they work/live in the White House or are goats that follow the herd.

And the only group that has lower ratings than Bush is Congress... so how's about we get off our asses out there in DC and do something like, I don't know... GOVERN?