John McCain's Jobs for America Economic Plan

John McCain Has Proposed A Jobs For America Economic Plan To Get Our Economy Back On Track. John McCain has a comprehensive economic plan that will create millions of good American jobs, ensure our nation's energy security, get the government's budget and spending practices in order, and bring relief to American consumers.

John McCain's Jobs For America Plan Will Especially Help Small Businesses. Small businesses create the majority of all jobs in America. A recent report says small businesses have created 233,000 jobs so far this year while other sectors are losing jobs. Small businesses are the job engine of America, and John McCain will make it easier for them to grow and create more jobs.

John McCain's Jobs For America Economic Plan Includes:

Immediate Relief For American Families.
Reforming Washington To Regain The Trust Of Taxpayers.
Pro-Growth, Pro-Job Creation Tax Policy.
Cheap, Clean, Secure Energy For America.
Better Health Care At Lower Costs For Every American.
Ensuring America's Economic Preeminence In The Global Economy.

IMMEDIATE RELIEF FOR AMERICAN FAMILIES

Gas And Food Prices:

John McCain Will Help Americans Hurting From High Gasoline And Food Costs. We need relief right now from high gas prices. John McCain will act immediately to reduce the pain of high gas prices.

· John McCain Believes We Should Send a Strong Signal To World Markets. Enhanced domestic production and developments of alternatives to oil will send a signal to markets that the United States is taking control of its energy future -- and will translate into lower prices for American consumers.

· John McCain Believes We Should Institute A Summer Gas Tax Holiday. Hard-working American families are suffering from higher gasoline prices. John McCain has called on Congress to suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day.

· John McCain Will End Policies That Contribute To Higher Transportation And Food Costs. Ethanol subsidies, tariff barriers and sugar quotas drive up food prices and hurt Americans. John McCain will repeal the 54 cents per gallon tax on imported sugar-based ethanol, increasing competition, and lowering prices of gasoline at the pump. He will also roll back corn-based ethanol mandates, which are contributing to the rising cost of food.

Home Foreclosures:

John McCain Believes There Is Nothing More Important Than Keeping Alive The American Dream Of Owning A Home. Priority number one is to keep well-meaning, deserving home-owners who are facing foreclosure in their homes.

John McCain Is Proposing A New "HOME Plan" To Provide Robust, Timely And Targeted Help To Those Hurt By The Housing Crisis. Under his HOME Plan, every deserving American family or homeowner will be afforded the opportunity to trade a burdensome mortgage for a manageable loan that reflects their home's market value.

· Eligibility: Holders of a sub-prime mortgage taken after 2005 who live in their home (primary residence only); can prove creditworthiness at the time of the original loan; are either delinquent, in arrears on payments, facing a reset or otherwise demonstrate that they will be unable to continue to meet their mortgage obligations; and can meet the terms of a new 30-year fixed-rate mortgage on the existing home.

· How It Works: Individuals pick up a form at any Post Office and applies for a HOME loan. The FHA HOME Office certifies that the individual is qualified, and contacts the individual's mortgage servicer. The mortgage servicer writes down and retires the existing loan, which is replaced by an FHA guaranteed HOME loan from a lender.

John McCain Calls For The Immediate Formation Of A Justice Department Mortgage Abuse Task Force. The Task Force will aggressively investigate potential criminal wrongdoing in the mortgage industry and bring to justice any who violated the law. The DOJ Task Force will offer assistance to State Attorneys General who are investigating abusive lending practices.

Keeping The Credit Crunch From Hurting College Students:

John McCain Is Proposing A Student Loan Continuity Plan. Students face the possibility that the credit crunch will disrupt loans for the fall semester. John McCain calls on the federal government and the 50 governors to anticipate loan problems and expand the lender-of-last resort capabilities for each state's guarantee agency.

REFORMING WASHINGTON TO REGAIN THE TRUST OF TAXPAYERS

Bring The Budget To Balance By 2013

John McCain Will Balance The Budget By The End Of His First Term. The near-term path to balance is built on three principles: reasonable economic growth, comprehensive spending controls, and bi-partisanship in budget efforts. Longer-term, the only way to keep the budget balanced is successful reform of the large spending pressures in Social Security, Medicare, and Medicaid.

· John McCain's Policies Will Support Rapid Economic Growth. Small business is the key to job growth. Small business will benefit from low individual tax rates -- sole-proprietorships, partnerships, landlords and others are taxed under the individual income tax; access to capital from low tax rates on dividends and capital gains; minimizing expensive mandates -- such as those for health insurance and pro-union initiatives like card check; enhancing international competitiveness to keep jobs here; a lower corporate tax rate; and improved investment incentives and research incentives to ensure that workers have the most modern technology.

· John McCain Will Institute Broad Reforms To Control Spending. A McCain Administration would reserve all savings from victory in the Iraq and Afghanistan operations in the fight against Islamic extremists for reducing the deficit. Since all their costs were financed with deficit spending, all their savings must go to deficit reduction. John McCain will freeze non-defense, non-veterans discretionary spending for a year and use those savings for deficit reduction. A one-year pause in the growth of discretionary spending will be imposed to allow for a comprehensive review of all spending programs. The McCain Administration will reclaim billions of add-on spending from earmarks and add-ons in FY 2007 and 2008.

· A McCain Administration Will Provide The Leadership To Achieve Bipartisan Spending Restraint Equivalent To That In The 1997 Balanced Budget Agreement Between A GOP Congress And A Democratic President. In 1997, President Clinton and the GOP Congress agreed to balance the budget by restraining the growth in spending and cutting taxes over a ten-year period. With the same bipartisan effort today, with the federal budget that now 70 percent larger, we could keep taxes low and still balance the budget by holding overall spending growth to 2.4 percent. Unlike Congress and the Executive in recent years, a McCain Administration will enforce the spending restraint to balance the budget and keep it balanced.

John McCain Will Stop Earmarks, Pork-Barrel Spending, And Waste. He will veto every pork-laden spending bill and make their authors famous. As President, he will seek the line-item veto to reduce waste and eliminate earmarks that have led to corruption. John McCain will also provide the courageous leadership necessary to control spending, including:

Eliminate Broken Government Programs. The federal government itself admits that one in five programs do not perform.
Reform Our Civil Service System To Promote Accountability And Good Performance In Our Federal Workforce.
Eliminating Earmarks, Wasteful Subsidies And Pork-Barrel Spending.
Reform Procurement Programs And Cut Wasteful Spending In Defense And Non-Defense Programs.

PRO-GROWTH, PRO-JOB CREATION TAX POLICY

John McCain Believes Taxes Should Be Low, Simple, And Fair And Has A Track Record Of Commitment To These Principles.

Cutting Taxes For The Middle Class:

John McCain Will Cut Taxes For Middle Class Families. John McCain will phase out and eliminate the Alternative Minimum Tax (AMT) -- a tax that will be paid nearly exclusively by 25 million middle class families. Repealing this onerous tax will save middle class families nearly $60 billion in a single year. Under John McCain's plan, a middle class family with children set to pay the AMT will save an average of over $2,700 -- a real tax cut for working families.

John McCain Will Double The Personal Exemption For Dependents. John McCain believes the tax code should be less of a burden on those, whether they are mothers and fathers or single parents, who are trying to raise a family. He proposes to raise the personal exemption for each dependent from $3,500 to $7,000.

Pro-Growth Tax Policy:

John McCain Will Keep Tax Rates Low. Entrepreneurs are at the heart of American innovation, growth and prosperity. Entrepreneurs create the ultimate job security -- a new, better opportunity if your current job goes away. Entrepreneurs should not be taxed into submission. John McCain will keep the top tax rate at 35 percent, maintain the 15 percent rates on dividends and capital gains, and phase-out the Alternative Minimum Tax. Small businesses are the heart of job growth; raising taxes on them hurts every worker.

John McCain Will Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D. This reform will simplify the tax code, reward activity in the U.S., and make us more competitive with other countries. A permanent credit will provide an incentive to innovate and remove uncertainty. At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate, and remove the uncertainty now hanging over businesses as they make R&D investment decisions.

John McCain Will Allow First-Year Deduction, Or "Expensing", Of Equipment And Technology Investments. American workers need the finest technologies to compete. Expensing of equipment and technology will provide an immediate boost to capital expenditures and reward investments in cutting-edge technologies.

John McCain Will Reduce The Federal Corporate Tax Rate To 25 Percent From 35 Percent. A lower corporate tax rate is essential to keeping good jobs in the United States. America was once a low-tax business environment, but as our trade partners lowered their rates, America failed to keep pace. We now have the second highest corporate tax rate in the world, making America a less attractive place for companies to do business. American workers deserve the chance to make fine products here and sell them around the globe.

Pro-Innovation Tax Cuts:

John McCain Will Ban Internet Taxes. John McCain has been a leader in keeping the Internet free of taxes. As President, he will seek a permanent ban on taxes that threaten this engine of economic growth and prosperity.

John McCain Will Ban New Cell Phone Taxes. John McCain understands that the same people that would tax e-mail will tax every text message -- and even 911 calls. John McCain will prohibit new cellular telephone taxes.

CHEAP, CLEAN, SECURE ENERGY FOR AMERICA

John McCain Will Lead America To Strategic Energy Independence Through The Lexington Project: A Comprehensive And Integrated Energy Strategy.

Expanding Domestic Oil And Natural Gas Exploration And Production:

John McCain Will Commit Our Country To Expanding Domestic Oil Exploration. The current federal moratorium on drilling in the Outer Continental Shelf stands in the way of energy exploration and production. John McCain believes it is time for the federal government to lift these restrictions and to put our own reserves to use. There is no easier or more direct way to prove to the world that we will no longer be subject to the whims of others than to expand our production capabilities. We have trillions of dollars worth of oil and gas reserves in the U.S. at a time when we are exporting hundreds of billions of dollars a year overseas to buy energy. This is the largest transfer of wealth in the history of mankind. We should keep more of our dollars here in the U.S., lessen our foreign dependency, increase our domestic supplies, and reduce our trade deficit -- 41% of which is due to oil imports. John McCain proposes to cooperate with th e states and the Department of Defense in the decisions to develop these resources.

John McCain Believes In Promoting And Expanding The Use Of Our Domestic Supplies Of Natural Gas. When people are hurting, and struggling to afford gasoline, food and other necessities, common sense requires that we draw upon America's own vast reserves of oil and natural gas. Within our country, we have tremendous reserves of natural gas. The Outer Continental Shelf alone contains 77 trillion cubic feet of recoverable natural gas. It is time that we capitalize on these significant resources and build the infrastructure needed to transport this important component of electricity generation and transportation fuel around the country.

Taking Action Now To Break Our Dependency On Foreign Oil By Reforming Our Transportation Sector:

The Nation Cannot Reduce Its Dependency On Oil Unless We Change How We Power Our Transportation Sector.

John McCain Will Propose A $300 Million Prize To Improve Battery Technology For Full Commercial Development Of Plug-In Hybrid And Fully Electric Automobiles. A $300 million prize should be awarded for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars. That battery should deliver a power source at 30 percent of the current costs.

John McCain's Clean Car Challenge. John McCain will issue a Clean Car Challenge to the automakers of America, in the form of a single and substantial tax credit for the consumer based on the reduction of carbon emissions. He will commit a $5,000 tax credit for each and every customer who buys a zero carbon emission car, encouraging automakers to be first on the market with these cars in order to capitalize on the consumer incentives. For other vehicles, a graduated tax credit will apply so that the lower the carbon emissions, the higher the tax credit.

John McCain Supports Flex-Fuel Vehicles (FFVs) And Believes They Should Play A Greater Role In Our Transportation Sector. In just three years, Brazil went from new cars sales that were about 5 percent FFVs to over 70 percent of new vehicles that were FFVs. American automakers have committed to make 50 percent of their cars FFVs by 2012. John McCain calls on automakers to make a more rapid and complete switch to FFVs.

John McCain Believes Alcohol-Based Fuels Hold Great Promise As Both An Alternative To Gasoline And As A Means of Expanding Consumers' Choices. Some choices such as ethanol are on the market right now. The second generation of alcohol-based fuels like cellulosic ethanol, which won't compete with food crops, are showing great potential.

Investing In Clean, Alternative Sources Of Energy:

John McCain Believes That The U.S. Must Become A Leader In A New International Green Economy. Green jobs and green technology will be vital to our economic future. There is no reason that the U.S. should not be a leader in developing and deploying these new technologies.

John McCain Will Commit $2 Billion Annually To Advancing Clean Coal Technologies. Coal produces the majority of our electricity today. Some believe that marketing viable clean coal technologies could be over 15 years away. John McCain believes that this is too long to wait, and we need to commit significant federal resources to the science, research and development that advance this critical technology. Once commercialized, the U.S. can then export these technologies to countries like China that are committed to using their coal - creating new American jobs and allowing the U.S. to play a greater role in the international green economy.

John McCain Will Put His Administration On Track To Construct 45 New Nuclear Power Plants By 2030 With The Ultimate Goal Of Eventually Constructing 100 New Plants. Nuclear power is a proven, zero-emission source of energy, and it is time we recommit to advancing our use of nuclear power. Currently, nuclear power produces 20% of our power, but the U.S. has not started construction on a new nuclear power plant in over 30 years. It is also critical that the U.S. be able to build the components for these plants and reactors within our country so that we are not dependent on foreign suppliers with long wait times to move forward with our nuclear plans.

John McCain Will Encourage The Market For Alternative, Low Carbon Fuels Such As Wind, Hydro And Solar Power. According to the Department of Energy, wind could provide as much as one-fifth of electricity by 2030. The U.S. solar energy industry continued its double-digit annual growth rate in 2008. To develop these and other sources of renewable energy will require that we rationalize the current patchwork of temporary tax credits that provide commercial feasibility. John McCain believes in an even-handed system of tax credits that will remain in place until the market transforms sufficiently to the point where renewable energy no longer merits the taxpayers' dollars.

Protecting Our Environment And Addressing Climate Change: A Sound Energy Strategy Must Include A Solid Environmental Foundation:

John McCain Proposes A Cap-And-Trade System That Would Set Limits On Greenhouse Gas Emissions While Encouraging The Development Of Low-Cost Compliance Options. A climate cap-and-trade mechanism would set a limit on greenhouse gas emissions and allow entities to buy and sell rights to emit, similar to the successful acid rain trading program of the early 1990s. The key feature of this mechanism is that it allows the market to decide and encourage the lowest-cost compliance options.

Promoting Energy Efficiency:

John McCain Will Make Greening The Federal Government A Priority Of His Administration. The federal government is the largest electricity consumer on earth and occupies 3.3 billion square feet of space worldwide. It provides an enormous opportunity to lead by example. By applying a higher efficiency standard to new buildings leased or purchased or retrofitting existing buildings, we can save taxpayers substantial money in energy costs, and move the construction market in the direction of green technology.

John McCain Will Move The United States Toward Electricity Grid And Metering Improvements To Save Energy. John McCain will work to reduce red tape to allow a serious investment to upgrade our national grid to meet the demands of the 21st century -- which will include a capacity to charge the electric cars that will one day fill the roads and highways of America. And to save both money and electrical power for our people and businesses, we will also need to deploy SmartMeter technologies. These new meters give customers a more precise picture of their overall energy consumption, and over time will encourage a more cost-efficient use of power.

Addressing Speculative Pricing Of Oil:

John McCain Believes We Must Understand The Role Speculation Is Playing In Our Soaring Energy Prices. Congress already has investigations underway to examine this kind of wagering in our energy markets, unrelated to any kind of productive commerce, because it can distort the market, drive prices beyond rational limits, and put the investments and pensions of millions of Americans at risk. John McCain believes that where we find abuses, they need to be swiftly punished. To make sure it never happens again, we must reform the laws and regulations governing the oil futures market, so that they are just as clear and effective as the rules applied to stocks, bonds, and other financial instruments.

John McCain Does Not Support A Windfall Profits Tax. A windfall profits tax on the oil companies will ultimately result in increasing our dependence on foreign oil and hinder investment in domestic exploration. Jimmy Carter put a windfall profits tax in place with little to no useful results.

BETTER CARE AT LOWER COSTS FOR EVERY AMERICAN

John McCain Will Address The Cost Of Health Care, Make Insurance More Accessible, And Improve The Portability Of Insurance. The rising cost of health care hurts the ability of our firms to compete around the globe, cuts into the wages of American workers, hinders the ability of small businesses to add workers and expand, and threatens the budgets of families and government programs alike.

A Specific Plan Of Action: Making Health Insurance Innovative, Portable And Affordable:

John McCain Will Reform Health Care Making It Easier For Individuals And Families To Obtain Insurance. An important part of his plan is to use competition to improve the quality of health insurance with greater variety to match people's needs, lower prices, and portability.

John McCain Will Reform The Tax Code To Offer More Choices Beyond Employer-Based Health Insurance Coverage. While still having the option of employer-based coverage, every family will also have the option of receiving a direct refundable tax credit -- effectively cash -- of $2,500 for individuals and $5,000 for families to offset the cost of insurance. Families will be able to choose the insurance provider that suits them best and the money would be sent directly to the insurance provider. Those obtaining innovative insurance that costs less than the credit can deposit the remainder in expanded Health Savings Accounts.

John McCain Proposes Making Insurance More Portable. Americans need insurance that follows them from job to job. They want insurance that is still there if they retire early and does not change if they take a few years off to raise the kids.

A Specific Plan Of Action: Lowering Health Care Costs:

John McCain Proposes A Number Of Initiatives That Can Lower Health Care Costs. If we act today, we can lower health care costs for families through common-sense initiatives. Within a decade, health spending will comprise twenty percent of our economy. This is taking an increasing toll on America's families and small businesses. Even Barack Obama recognizes the pressure skyrocketing health costs place on small business when they exempt small businesses from their employer mandate plans.

· Cheaper Drugs: John McCain will look to bring greater competition to our drug markets through safe re-importation of drugs and faster introduction of generic drugs.

· Chronic Disease: Chronic conditions account for three-quarters of the nation's annual health care bill. By emphasizing prevention, early intervention, healthy habits, new treatment models, new public health infrastructure and the use of information technology, we can reduce health care costs. We should dedicate more federal research to caring and curing chronic disease.

· Coordinated Care: Coordinated care -- with providers collaborating to produce the best health care offers better outcomes at lower cost. We should pay a single bill for high-quality disease care which will make every single provider accountable and responsive to the patients' needs.

· Greater Access And Convenience: Families place a high value on getting simple care quickly. Government should promote greater access through walk-in clinics in retail outlets.

· Information Technology: We should promote the rapid deployment of 21st century information systems and technology that allows doctors to practice across state lines.

· Medicaid And Medicare: We must reform the payment systems in Medicaid and Medicare to compensate providers for diagnosis, prevention and care coordination. Medicaid and Medicare should not pay for preventable medical errors or mismanagement.

· Tort Reform: We must pass medical liability reform that eliminates lawsuits directed at doctors who follow clinical guidelines and adhere to safety protocols. Every patient should have access to legal remedies in cases of bad medical practice but that should not be an invitation to endless, frivolous lawsuits.

· Transparency: We must make public more information on treatment options and doctor records, and require transparency regarding medical outcomes, quality of care, costs and prices. We must also facilitate the development of national standards for measuring and recording treatments and outcomes.

ENSURING AMERICA'S ECONOMIC PREEMINENCE IN THE GLOBAL ECONOMY

John McCain's Plan For Global Trade Offers New Opportunities For Small Businesses And Higher Wages For American Workers. Exports are essential to American workers and employers across our nation.

Honoring Trade Agreements With Key Allies:

John McCain Is Committed To Pursuing Free Trade Agreements With Our World Trading Partners. As President, he will pursue multilateral, regional and bilateral efforts to reduce trade barriers, level the global playing field and build effective enforcement of global trading rules. Barack Obama has pledged to abrogate our trade commitments, and unsettle the ability of American workers to sell their goods abroad.

John McCain Will Push To Ratify The Colombia Free Trade Agreement. American exporters now pay an extra $3.5 million in tariffs each day because we don't have a completed trade agreement with Colombia. Colombia is a friend and crucial democratic ally. The stability of Colombia is more critical than ever as others in the region seek to turn Latin America away from democracy and away from our country. Trade serves all of these national interests, and the interests of the American economy as well. This agreement is currently being held up in the Senate, in part through the efforts of Senator Obama.

John McCain Supports A Free Trade Agreement With South Korea. America exports nearly $50 billion in goods to South Korea, a key ally that deployed the third-largest contingent of troops to Iraq, and assisted in the rebuilding of Afghanistan. Barack Obama opposes ratifying this agreement, and would turn our nation's back on this commitment to a key ally and trade partner.

Barack Obama's Habit Of Talking Down The Value Of America's Exports And Trade Agreements Harkens To "Old-Style Politics." Senator Obama has proposed a unilateral re-negotiation of NAFTA -- an agreement that accounts for 33 percent of American exports. This is bad judgment and a bit inconsistent. Senator Obama scolds others for engaging in the "old-style politics," but playing on fears of foreign trade is resorting to the oldest kind of politics there is.

Making American Workers More Competitive:

John McCain Will Act To Make American Workers More Competitive. We must prepare the next generation of workers by making American education worthy of the promise we make to our children and ourselves. We must be a nation committed to competitiveness and opportunity. We must fight for the ability of all students to have access to any school of demonstrated excellence. We must place parents and children at the center of the education process, empowering parents by greatly expanding the ability of parents to choose among schools for their children.

Reforming The Unemployment Insurance (UI) System:

John McCain Believes We Should Have A Single, Seamless Approach To Job Transition Assistance. The UI system must be more effective in helping those who have lost a job. John McCain will modernize and transform our current programs by consolidating redundant federal programs, strengthening community colleges and technical training and giving displaced workers more choices to find their way back to productive and prosperous lives.

John McCain Will Reform Training Programs To Provide Quick Assistance To Workers Seeking New Skills. Workers will have access to a flexible training account that permits them to pay for training at a community college and use leftover funds to keep their health insurance.

John McCain Will Provide Special, Targeted Assistance For Older Workers. Because training is often inefficient for older workers, those 55 years of age and older who have built up an LEB will be eligible for a Lost Earnings Supplement. The supplement of up to 50 percent of their earnings loss (up to a maximum of $10,000) for two years will be rewarded for those who find work inside 26 weeks.