McCann against Obama - how will affect the economy
The new U.S. president who will take over one of the hottest positions in the world, must fight a number of problems. The credit crisis, collapse of Mortgage Market stabilization of the financial crisis, huge budget deficit and weakening labor market are only part of the emerging themes that are already out of control of U.S. authorities and showed interest worldwide.
This is the reason immediately before the upcoming elections tomorrow CNN readers to submit their simultaneous analysis of the plans of two men who will fall on huge capacity - Republican John Makeyn and Democrats Barak Obama. Summary of the platforms of candidates for president on some key issues affecting the capital market and currency trading.
Budget deficits - the government measures, which took the U.S. government in recent months exceed 1 trln. dollars. What happens and what the candidates plan to stabilize the state budget and the financial system?
Barak Obama
- introduction of budget rules that require any new spending be offset by reducing payments for another program or new revenue;
- reducing the cost of minor public programs to levels no higher than 2001 and increasing transparency in these costs;
- support payments under the new programs by drawing troops from Iraq, increasing taxes on the richest and eliminate some loopholes in corporate accountability.
John McCann
- originally announced that the budget will become balanced by 2013, but his advisers now acknowledge that it may take more time;
- slowing the growth of spending on programs of social security and Medicare medical care and Medicaid;
- eliminate the cost of projects related to pets and animals to be used by the name of the minor programs;
- offset losses for the budget decreased from taxes by creating new jobs in the energy sector and develop new technologies to support economic growth
Measures against economic crisis - the problems of the financial sector now move on the real economy, which puts all companies on trial in the United States. The main problem however is that the threat is not only overhang on America and on the world
Barak Obama
- temporary permission to withdraw up to 15 percent of individual pension plans, but not more than 10 thousand dollars;
- suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
- providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time;
- Suspension of taxes on benefits received unemployment;
- introducing the requirement that financial institutions receiving funds from the Rescue plan to introduce 90-day moratorium on outstanding mortgages a fair borrowers;
- authorizing the government to borrow funds in the U.S. state and municipal authorities to help balance their budgets, which are expected to suffer a serious blow because of the credit crisis.
John Makeyn
- introduction of tax from 10 percent to withdraw funds up to 50 thousand dollars in 2008 and 2009;
- suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
- lower profit tax from 15 to 7.5 percent for two years;
- increasing the amount of capital losses that can be deducted from the profits of 3 thousand, 15 thousand dollars in 2008 and 2009;
- suspension of taxes on benefits received unemployment;
- buying bad mortgages and renegotiating terms of the loans in accordance with the current price of housing;
- convert bad mortgages in low-loans insured by the Federal Housing Association.
Wall Street - all know what happened on stock exchanges last year. That makes two candidates to unite around the requirements for greater transparency and introduce new rules for capital adequacy of financial institutions
Barak Obama
- introduction of requirements for capital and liquidity of investment banks;
- reorganization of the regulatory framework for the financial institutions;
- establishment of a supervisory committee to make advice to the president, Congress and regulatory frameworks on health risks of financial markets;
- provision of the Federal Reserve Supervision rules to any bank, which took funds from him.
John McCann
- increased capital requirements for financial institutions.
- Elimination of certain regulatory, accounting and tax requirements to raise capital.
- Study methods and practices of banks and other companies for evaluation of assets for which it was to the credit crisis.
- increasing transparency of complex financial instruments.
The labor market - unemployment in the U.S. is growing continuously since the beginning of the year and has already reached alarming proportions. Companies restrict the hiring of new employees, leading to increased social tension. The new president will be serious testing
Barak Obama
- finance training programs and focus on those training to the introduction of “green technologies”;
- increasing the minimum payment of 9.50 dollars per hour by 2001 and linking with the growth indicators of inflation;
- a doubling of funds to research programs and make the cost of scientific research tax credit permanent;
- Creation of Investment Bank to support public infrastructure spending, which has a capital of 60 billion dollars. Other 25 billion dollars must be brought in to fund job creation and contributing to economic growth;
- providing tax credits to companies that maintain or increase the number of employed full-time appointments to the U.S. export markets;
- providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time
- Suspension of taxes on benefits received unemployment
John McCann
- promote economy and increasing jobs through lower corporate tax temporarily and reduction of rates for capital gains and dividend;
- Drop the minimum payment at a level of 7.25 dollars an hour, as is to happen by 2009. Furthermore, McCann is opposed linking salaries to inflation rates;
- introducing a tax credit amounting to 10 percent of earnings, invested in research;
- Merger of federal employment programs and modify training programs for unemployed;
- Suspension of taxes on benefits received unemployment.
Tags: economic crisis, economy, finances, financial system, Markets
