/ 7 July 2008

Obama, McCain set to duel over economy

The United States presidential candidates will duel over the economy this week, with Republican Senator John McCain touting proposals he says will stimulate job growth and Democratic Senator Barack Obama discussing economic security for families.

McCain, an Arizona senator who has wrapped up his party’s nomination, will embark on a tour of Colorado, Pennsylvania, Ohio, Michigan and Wisconsin — all toss-up states in the November election to win the White House.

The Arizona senator spent last week on a swing through Latin America, highlighting his support for free trade, prompting some observers to question why he went abroad at a time when employers cut US workers from their payrolls for a sixth straight month and gasoline prices continued to sting.

”Senator Obama’s tax increases will hurt the economy even more and destroy jobs across this country,” McCain will say in Denver on Monday, according to prepared remarks.

”At a time of increasing gas and food prices, American families need tax relief and I, not my opponent, will deliver it.”

McCain is expected to offer detailed plans outlining how he would balance the federal budget by 2013, but otherwise will promote existing policy proposals rather than propose sweeping changes, an aide said.

Obama’s campaign accused McCain of misrepresenting the Democrat’s plans and offered a stinging description of the Arizona senator’s economic ideas.

”John McCain has essentially no ideas to get the economy going and create jobs in the short run, and [he] has ideas about the long-run economy that are rooted in a failed economic philosophy,” Jason Furman, Obama’s economic policy director, told a conference call with reporters on Sunday.

Taxes
Taxes are a key difference between the two candidates. McCain accuses Obama of wanting to raise taxes across the board, while the Illinois senator accuses his rival of wanting to provide a cushion for wealthy people and big corporations.

McCain hopes to sell his proposals to undecided voters in his tour this week.

”John McCain is undertaking a new and focused effort to highlight the job growth that would result from his economic plan,” spokesperson Tucker Bounds said.

”John McCain’s tax-cut proposals are focused on growing jobs, which is in sharp contrast to Barack Obama, who quite simply burdens small business growth with tax increases [that] will slow our economy.”

Obama kicks off his week in North Carolina, where he will also focus on the economy.

Furman said Obama’s tax cuts would help middle-class families and said McCain’s accusations were off base.

”He is mischaracterising Senator Obama’s plan, which is very simple. If you make below $250 000, none of your taxes go up, and in fact, most likely you’re going to end up getting a tax cut,” Furman said.

The two candidates disagree on other areas connected to the economy, including trade and healthcare reform. Both propose spurring job growth through programmes to increase US use of solar, wind and other renewable energy sources. — Reuters