Election Day: Voters Turnout to Decide Future of Economy, Jobs
In the final weeks leading up to Election Day, Democratic Presidential contender, Barack Obama, said he could not “imagine anything more important to talk about” than Americans’ losing their jobs, healthcare and homes. Meanwhile, Republican Presidential hopeful, John McCain, has said sweeping reform in the way Washington works is needed to restore confidence in the economy and in the U.S. government. Now, the hotly contested race for the White House is drawing to a close in an election that promises record voter turnout.
The results of this Presidential election precede the likely gloomy jobs report this week. Regardless of who wins today, the 44th President of the United States will be forced to tackle a slew of domestic issues, including the faltering economy, healthcare…and jobs. According to the WSJ, “It is a challenging scenario for the next president, as the election moves into the home stretch. Either Sen. John McCain or Sen. Barack Obama likely will face an economy in the midst of recession on Inauguration Day, even if the credit crisis begins to ease. The new administration will have to get up to speed quickly, taking over the largest government intervention since the Great Depression.”
Although Wall Street is awaiting the latest jobs report this week, the U.S. economy lost 159,000 jobs last month, the steepest monthly drop since March 2003, according to the Labor Department. Obama used the latest figures to convince voters that a vote for his ticket is a vote for more jobs. Obama has said his economic policies would create millions of new jobs, including five million in clean energy technology and two million in infrastructure. Meanwhile, John McCain has proposed his own plan for stimulating the economy. Central to his plan are tax cuts and a push for nuclear power.
Today, as Americans await the results of the 2008 Presidential Election, executive search firm, A.E. Feldman offers a rundown of how both candidates have responded to the economic crisis and what they intend to do about it if given the chance…
Tax Changes
Obama plans to permanently extend certain provisions of the 2001 and 2003 tax cuts primarily affecting taxpayers with incomes under $250,000, but repeal the cuts in the top two marginal income tax rates ahead of their scheduled expiration in 2010. Senator Obama would also extend the AMT. Obama says he would set the tax rates paid on most dividends and capital gains at 20%.
Barack Obama says he will also increase federal support for research, technology and innovation for companies and universities so Americans “can lead the world in creating new advanced jobs and products.” Obama plans to make the research and development tax credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multi-year timeframes.
Meanwhile, John McCain says he believes he can spur businesses to create jobs through tax cuts. According to McCain, small business is the key to job growth, and low taxes are essential to creating Jobs…and keeping jobs… in America.
The Republican nominee has some immediate relief measures, such as suspending the 18.4-cent federal gas tax, but many of his proposals center on keeping taxes low. McCain plans to permanently extend the 2001 and 2003 tax cuts, keeping the top tax rate at 35% and maintaining the 15% rates on dividends and capital gains. He also plans to increase deductions for taxpayers supporting dependents, phase-out the Alternative Minimum Tax (AMT) and cut the corporate tax rate from 35% to 25%.
“There is much that needs to be done to get the economy on track,” says McCain’s campaign. “John McCain’s Jobs for America Plan will … keep taxes low to create good jobs here in America, and give American workers renewed confidence in their economic future.”
Infrastructure
Included in Barak Obama’s plans for rebuilding the nation’s infrastructure is the creation of a National Infrastructure Reinvestment Bank (an expansion of existing federal transportation investments) to invest in America’s most challenging transportation infrastructure needs. According to Obama’s plan, the Bank would receive an infusion of federal money, $60 billion over 10 years, to provide financing to transportation infrastructure projects across the nation. These projects will create up to two million new direct and indirect jobs per year and stimulate approximately $35 billion per year in new economic activity.
Republican presidential candidate, John McCain has not proposed a blueprint for road, rail and bridge construction, according to Reuters. He has, however, vowed to seek line-item veto authority on what he calls wasteful spending.
Clean Technology
Democrat Presidential contender, Barack Obama, has said that as president he would spend $150 billion to develop more environmentally friendly energy sources…and in doing so he would create 5 million so-called “green collar” jobs.
Another key proposal under Obama’s plan is to extend the Production Tax Credit (PTC) - a credit used successfully by American farmers and investors to increase renewable energy production and create new local jobs. Large scale renewable energy projects rely upon the Federal Production Tax Credit (PTC), which provides incentives for development of renewable energy.
Obama’s rival, John McCain says he too will encourage the market for alternative, low carbon fuels such as wind, hydro and solar power. Unlike Obama however, McCain says he believes in an even- handed system of tax credits that will remain in place until renewable energy has progressed to the point that it is competitive with conventional energy sources.
John McCain, is also a big proponent of nuclear power. On his web site, McCain says, “Nuclear power is a proven, reliable, zero-emission source of energy, and it is time to recommit to advancing our use of nuclear power.” McCain says he will put the U.S. country on track to construct 45 new nuclear power plants by 2030……with the ultimate goal of eventually constructing 100 new plants… and create roughly 700,000 jobs in the process.
Are you looking for a new job? Contact A.E. Feldman’s President, Mitch Feldman, now. Find out more about existing opportunities today!
