Last debate eyes financial crisis
HEMPSTEAD, N.Y. -- Democrat Barack Obama and Republican John McCain met each other on the stage here for their third and final presidential debate Wednesday, touting their economic plans amid more further bad financial news.
The candidates debated domestic policy at Hofstra University just hours after the stock market plunged more than 700 points for the second time in three weeks.
The two debated tax increases as McCain accused Obama of waging class warfare by advocating tax increases designed to "spread the wealth around." Obama denied it, and countered that he favors tax reductions for 95% of all Americans.
"Nobody likes taxes," Obama said. "But ultimately we've got to pay for the core investments" necessary for the economy.
"If nobody likes taxes, let's not raise anybody's, OK?" McCain retorted with a laugh.
Both candidates stressed economic proposals they have re-tooled in recent days. Obama, who has pulled ahead in national polls, this week proposed a new package of tax relief, including tax credits for businesses that create new jobs.
McCain proposed suspending rules that require seniors to sell stocks from retirement accounts at age 70 ½ or retirement. The Arizona senator also proposed cutting the capital gains tax in half, from 15% to 7.5%, and eliminating income taxes on unemployment benefits.
Obama has also proposed penalty-free withdrawals for up to 15%, or $10,000, from a 401 (k) or Individual Retirement Account. McCain criticized that proposal, saying it would encourage more selling of stock at a time when the markets are volatile.
Instead, McCain has proposed taxing retirement account withdrawals at 10%, instead of the varying rates on other income.
Spokesman Tucker Bounds said McCain will argue that Obama's plans will lead to higher taxes and bigger government, while stressing his own experience and record of reform. Bounds also said McCain could raise Obama's relationship with former 1960s radical Bill Ayers.
"He's certainly going to draw stark contrasts," Bounds said, adding that McCain is going to be aggressive. "In a word, fight."
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