John McCain's Economic Plan
John McCain's Economic Plan
Families Relief |
Government Reform |
Healthcare | Taxes |
Reforming Washington to Regain the Trust of Taxpayers
Bring The Budget
To Balance By 2013
John McCain will balance the budget by the end of his first term.
The near-term path to balance is built on three principles:
Reasonable economic growth. Growth is an imperative -
historically the greatest success in reducing deficits (late
1980s; late 1990s) took place in the context of economic growth.
Comprehensive spending controls. Bringing the budget to
balance will require across-the-board scrutiny of spending and
making tough choices on new spending proposals.
Bi-partisanship in budget efforts. Much as the late 1990s
witnessed bipartisan efforts to put the fiscal house in order,
bi-partisan efforts will be the key to undoing the recent
In the long-term, the only way to keep the budget balanced is
successful reform of the large spending pressures in Social
Security, Medicare, and Medicaid.
McCain Policies Will Support Reasonable Economic Growth:
small business is the key to job growth. small business will benefit from:
Low individual tax rates - sole-proprietorships,
partnerships, landlords and others are taxed under the
individual income tax.
Access to capital from low tax rates on dividends and
Minimizing expensive mandates - such as those for health
insurance and pro-union initiatives like card check.
Enhancing international competitiveness to keep jobs here;
A lower corporate tax rate.
Improved investment and research incentives to ensure that
workers have the most modern technology.
Bringing the budget to balance, reducing federal borrowing, and
controlling spending to reduce the burden on the economy.
Comprehensive Spending Controls:
John McCain will institute broad
reforms to control spending:
The McCain administration would reserve all savings from
victory in the Iraq and Afghanistan operations in the fight
against Islamic extremists for reducing the deficit. Since all
their costs were financed with deficit spending, all their
savings must go to deficit reduction.
A one-year spending pause. Freeze non-defense, non-veterans
discretionary spending for a year and use those savings for
deficit reduction. A one-year pause in the growth of
discretionary spending will be imposed to allow for a
comprehensive review of all spending programs. After the
completion of a comprehensive review of all programs, projects
and activities of the federal government, we will propose a plan
to modernize, streamline, consolidate, reprioritize and, where
needed, terminate individual programs.
Take back earmark funds. The McCain Administration will
reclaim billions of add-on spending from earmarks and add-ons in
FY 2007 and 2008.
Bi-partisan Fiscal Discipline:
A McCain Administration will
provide the leadership to achieve bipartisan spending restraint
equivalent to that in the 1997 Balanced Budget Agreement between a
GOP Congress and a Democratic President. In 1997, President Clinton
and the GOP Congress agreed to balance the budget by restraining the
growth in spending and cutting taxes over a ten-year period.
With the same bipartisan effort today, with the federal
budget that is now 70 percent larger, we could keep taxes low
and still balance the budget by holding overall spending growth
to 2.4 percent. Unlike Congress and the Executive branch in
recent years, a McCain Administration will enforce the spending
restraint to balance the budget and keep it balanced.
A McCain Administration would perform a comprehensive review
of all programs, projects and activities of the federal
government, and then propose a plan to modernize, streamline,
consolidate, reprioritize and, where needed, terminate
individual programs. McCain could use the bi-partisan commission
structure used for the Defense Base Realignment and Closure
Commission (BRAC). Such a commission could be required to report
to the President who would then submit the recommendations to
the Congress for a straight up or down vote.
A McCain Administration will review all special spending
provisions to end subsidies to high-income individuals and
Eliminating Wasteful Spending
Stop Earmarks, Pork-Barrel Spending, And Waste: John McCain will
veto every pork-laden spending bill and make their authors
famous. As President, he will seek the line-item veto to reduce
waste and eliminate earmarks that have led to corruption.
Earmarks restrict America's ability to address genuine national
priorities and interfere with fair, competitive markets.
Leadership, Courage And Choices:
Reducing spending means making
choices. John McCain will provide the courageous leadership
necessary to control spending, including:
Eliminate broken government programs. The federal government
itself admits that one in five programs do not perform.
Reform our civil service system to promote accountability
and good performance in our federal workforce.
Reform procurement programs and cut wasteful spending in defense
and non-defense programs.
Reforming Entitlement Programs For The 21st Century
Reform Social Security:
John McCain will fight to save the future of
Social Security, and he believes that we may meet our obligations to
the retirees of today and the future without raising taxes. John
McCain supports supplementing the current Social Security system
with personal accounts - but not as a substitute for addressing
benefit promises that cannot be kept. John McCain will reach across
the aisle to address these challenges, but if the Democrats do not
act, he will. No problem is in more need of honesty than the looming
financial challenges of entitlement programs. Americans have the
right to know the truth and John McCain will not leave office
without fixing the problems that threaten our future prosperity and
Control Medicare Growth:
The growth of spending on Medicare
threatens our fiscal future. John McCain has proposed comprehensive
health care reforms that will reduce the growth in Medicare
spending, improve the quality of care, protect seniors against
rising Medicare premium payments, and preserve the advancements in
medical science central to providing quality care.
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