And here I thought John McCain couldn't slip further from reality on economic matters. I stand corrected.
Republican presidential candidate John McCain on Saturday accused Democratic rival Barack Obama of favoring a socialistic economic approach by supporting tax cuts and tax credits McCain says would merely shuffle wealth rather than creating it. [...]
Obama has said his tax policies would cut payments for 95 percent of working Americans, while increasing them only for families making more than $250,000 a year. McCain has argued that 40 percent of Americans don't pay income taxes, either because they are seniors or don't meet minimum earnings thresholds, so the only way to cut their taxes is to give them various credits.
"In other words, Barack Obama's tax plan would convert the IRS into a giant welfare agency, redistributing massive amounts of wealth at the direction of politicians in Washington," McCain said in the radio address.
We talked the other day about why McCain doesn't know what he's talking about, but Obama is prepared to deliverer a speech in St. Louis today that drives the point home nicely. According to the prepared text, Obama will explain that both candidates are offering tax cuts: "The difference is who we're cutting taxes for."
"It comes down to values -- in America, do we simply value wealth, or do we value the work that creates it? For eight years, we've seen what happens when we put the extremely wealthy and well-connected ahead of working people. Now, John McCain thinks that the way to rebuild this economy is to double down on George Bush's policy of giving more and more tax breaks to those at the very top in the false hope that it will all trickle down. I think it's time to rebuild the middle class in this country, and that is the choice in this election.
"Senator McCain wants to give the average Fortune 500 CEO a $700,000 tax cut but absolutely nothing at all to over 100 million Americans. I want to cut taxes -- cut taxes -- for 95 percent of all workers. And under my plan, if you make less than $250,000 a year -- which includes 98 percent of small business owners -- you won't see your taxes increase one single dime. Not your payroll taxes, not your income taxes, not your capital gains taxes -- nothing. It's time to give the middle class a break, and that's what I'll do as President of the United States.
"Lately, Senator McCain has been attacking my middle class tax cut. He actually said it goes to, 'those who don't pay taxes,' even though it only goes to working people who are already getting taxed on their paycheck. That's right, Missouri -- John McCain is so out of touch with the struggles you are facing that he must be the first politician in history to call a tax cut for working people 'welfare.'
The only 'welfare' in this campaign is John McCain's plan to give another $200 billion in tax cuts to the wealthiest corporations in America -- including $4 billion in tax breaks to big oil companies that ran up record profits under George Bush. That's who John McCain is fighting for. But we can't afford four more years like the last eight. George Bush and John McCain are out of ideas, they are out of touch, and if you stand with me in 17 days they will be out of time."