John McCain’s economic speech in Pennsylvania today is actually quite bold and employs some effective rhetoric. On the positive side he finally sets forth a pro-growth plan:

In my administration, we will instead revive the market by attracting new investment. I will cut in half the capital gains tax on stocks purchased and held for more than a year – from a rate of 15 to 7.5 percent. This vital measure will promote buying, raise asset values, help companies and shore up the pension plans for workers and retirees.

We should also not penalize Americans who are forced to sell investments in today’s tough markets. I will increase the amount of capital losses from $3,000 to $15,000, which can be deducted from your ordinary income in tax years 2008 and 2009. So much of this decline in our markets and value destruction was due to the failure of Congress and the Administration to come out with a timely rescue package. Investors are always responsible for their investment decisions, but the hard earned savings of Americans should not be penalized by the erratic behavior of politicians.

. . .

While we put government back on your side, we must reform our tax system to deliver needed tax relief to working Americans, and to create jobs. I will double the child deduction, from 3,500 dollars to 7,000 dollars. Every person in America who chooses it will receive a 5,000 dollars towards the purchase of health insurance – health plans that will be theirs to keep, even if they change jobs or move to another state. And we will reduce the federal business tax rate from 35 percent – the second-highest in the world – to 25 percent. I am also proposing today that for those who are between jobs, we eliminate all taxes on unemployment benefits. It is unclear to me why the government taxes money it has just sent you, and we should relieve this burden from Americans who’ve been hit the hardest.

And then he levels his most effective attack on the substance of Barack Obama’s agenda:

Senator Obama also promises to restrict international trade and risk access to foreign markets for American goods and services. The last President to raise taxes and restrict trade in a bad economy was Herbert Hoover. That didn’t turn out to well. They say those who fail to learn the lessons of history are doomed to repeat them. Well, I know my history lessons, and I sure won’t make the mistakes Senator Obama will. And were my opponent elected with a Democratic Congress in power, not only would there be no check on my opponent’s reckless economic policies, there would be considerable pressure on him to tax and spend even more.

This weekend, a plumber concerned that Senator Obama was going to raise his taxes asked him directly about his plan. The response was telling. Senator Obama explained to him that he was going to raise his taxes to quote “spread the wealth around.” This explains how Senator Obama can promise an income tax cut for millions who aren’t even paying income taxes right now. My friends, my plan isn’t intended to force small businesses to cut jobs to pay higher taxes so we can “spread the wealth around.” My plan is intended to create jobs and increase the wealth of all Americans.

The contrast between a classic right-of-center, pro-growth and free trade agenda and a liberal, high-tax, protectionist regime is a compelling one. It comes too late, perhaps, and is marred by his own indictment of Wall Street “greed” (why not give government all the money if you can’t trust the private sector?). Still, it does demonstrate that a case can be made, and made effectively, against the Obama agenda and in favor of a more conservative and less government-centric one. Whether McCain can make that same case at the final debate and sway voters remains an open question.

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This entry was posted on Tuesday, October 14th, 2008 at 12:47 PM and is filed under Contentions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.