Power And Dollar

Obama is travelling overseas.  However, this is not about vacationing.  He is still selling himself to his home audience.  He wants to show that he is able to represent the United States, he will not be treated like kid.  Part of his weakness is he lacks the credential in foreign affairs.  This trip is address that. 

However, for most of us, we are more interested at our wallets.  What do you want to ask to the candidates?

Sen. John McCain’s top economic adviser, Doug Holtz-Eakin, will meet with Forbes magazine’s reporters and editors next week.  Forbes is inviting questions from the general public.  The same invitiation is sent to Obama as well. 

Here is the link for your submission:

http://blogs.forbes.com/trailwatch/2008/07/your-economy-yo.html?cid=122822586#comment-122822586

My questions directly correspond to the content from McCain’s website. McCain’s material is quoted first and then my questions.

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

Would McCain consider the idea of cutting taxes through increasing personal exempt instead of cutting corporate would increase aggregate domestic demand, off set the price increase in gasoline?

Would McCain consider the idea of levying taxes at the oil, coal and nuclear buyer level so that energy producers while cutting income tax both at personal and corporate level at the same time since it would create the incentives for energy producers to be more efficient, and thus decrease the consumption of those commodities without affecting consumers’ preferences?  Basically, would McCain tax oil as if they were cigarettes and decrease income tax elsewhere?

McCain:
John McCain Will Keep Tax Rates Low. Entrepreneurs are at the heart of American innovation, growth and prosperity. They create the ultimate job security – a new, better opportunity if your current job goes away. Entrepreneurs should not be taxed into submission.

Questions
Would you agree that if income tax cuts can off set the recent increase in energy, it will create sufficient demand for American manufacturers to manufacture energy efficient products to be internationally competitive and save more jobs?  Our automobile industry is a great example: If we wish to sell more cars overseas (or even domestically), producing energy efficient products is to equivalent to stay competitive. China is now the largest solar panel producer in the world by footage and India now exports windmills to America.

John McCain Will Reward Saving, Investment And Risk-Taking. Low taxes on dividends and capital gains promote saving, channel investment dollars to innovative, high-value uses and not wasteful financial planning. John McCain will keep the current rates on dividends and capital gains and fight anti-growth efforts by Democrats.

To courage more saving, would McCain consider the idea of allowing people to cash out their 401k as down payment to complement the first home buyer program, with a cap, without tax implications?  This probably would revive the demand in the real estate market.  The tax revenue impact to the government would probably be smaller than increasing the tax credit as it current stands.