The real political season begins in earnest after the Labor Day weekend. However, John McCain has the opportunity to put the game away prior to that date. With all the talk in Washington, D.C. about a second stimulous package, Senator McCain has a clear opening to introduce his own stimulous package and battle for its passage along the summer campaign trail. In business as in politics, no risk, no reward.
The Plan
Give Every Working American a Raise!!!!
With a tip of the hat to the late Daniel Patrick Moynihan (1927-2003), reduce the payroll tax (social security) to 5%. This will instantly put money into the pockets of working men and women. No waiting for checks here. If there is strong opposition to such change due to revenue projections, bring in federal employees, members of congress and high wage earners into the system. FDR set the Social Security system up in 1935 as a supplemental retirement plan. Note the operative word as being "supplemental". Face it, the system is part of the government safety net. Make the forced savings a reasonable amount and put more money into most American's pockets.
Reduce the Capital Gains Tax to 10%
The stimulative effect of reducing the Cap Gains tax to 10% would be immeasurable. Make the cut retroactive to January 1, 2008. Many Americans holding assets for more than a year can place them on the market without having to worry about eggregious taxation, that sometimes enters into the decision making process. This move alone could be very stimulating.
Allow an R & D Expense of 120%
Again, allow business to take a research and development business expense retroactive to January 1, 2008. This a great job producing measure. Imagine the effect it would have in the fields of Agriculture, Energy, Medicine and Technology to name a few. A strong forward moving, pro-growth policy like this will help maintain America's #1 position as the most innovative and productive nation on earth.
Extend the Bush Tax Cuts now!!!!
Similar to negotiating a big league contract before its expiration, extend the cuts. Don't play the political posturing game. Do it Now! Bring the dems on board by expanding the income brackets and truly give the middle-class the tax cuts they are constantly harping about.
Should McCain introduce his own stimulous package containing these four components and then masterfully guides it through the Senate and House, it would provide him with the surge he needs to set-up shop in the White House in 2009.
In other words, Game Over! McCain Wins.
