Comparing the Major Party Candidates
Peter Ferrara, who served in the administrations of President Reagan and the first President Bush, writes a commentary for Forbes magazine last Friday that “the contrast between these two candidates could not be greater.” Ferrara wonders “why on earth doesn’t (McCain-R) talk more” about his tax and budget proposals? For example, on corporate taxes, Ferrara writes:
“America suffers from the second-highest corporate tax rate in the industrialized world. American corporations face a 35% federal tax rate, averaging 40% with state income taxes. In contrast, the average corporate tax rate in the European Union has been slashed from 38% in 1996 to 24% today. Ireland has a corporate tax rate of 12.5%, which has caused per capita income to soar from the second lowest in the E.U. 20 years ago to the second highest today. Corporate tax rates in India and China are lower as well.
“How are American corporations supposed to compete? How are they supposed to provide good jobs at good wages while paying tax rates that are two-thirds higher than their competitors, and more?
“Mr. McCain addresses this problem directly by proposing to slash the federal corporate-tax rate from 35% to 25%. He also proposes immediate expensing for capital investment, which means that capital costs can be deducted in the year they are incurred, like all other business expenses, rather than spread over many years under arbitrary depreciation schedules.”
In wrapping up the commentary, Peter writes:
“Ironically, today it is the Republican John McCain who is proposing the tax policies of President Kennedy, which led to the economic boom of the 1960s, rather than the Democratic nominee, Barack Obama. Indeed, what Mr. Obama is proposing is the opposite of Kennedy's tax policies.”
Mr. Ferrara, who was a leader of the fight against the 2002 regional tax referendum in Virginia, also compares the two candidates’ positions on individual income taxes and spending. It’s an article well-worth reading.