the town hall debate

iVillage Member
Registered: 09-15-2008
the town hall debate
85
Tue, 10-07-2008 - 11:41pm
any thoughts on tonights town hall debate?

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iVillage Member
Registered: 08-02-2003
Wed, 10-08-2008 - 2:07pm
If you have hospitals and doctors that will work out a lower price send me their way!
iVillage Member
Registered: 04-24-2008
Wed, 10-08-2008 - 2:51pm

Boring, even with the jabs from McCain.

iVillage Member
Registered: 07-22-2004
Wed, 10-08-2008 - 2:58pm

I found it interesting that McCain complained about the expense of Obama's plans and then proposed a $300 billion buy-out of mortgages. Where is that money going to come from if we cut taxes? Especially after the $700 billion bail out. Why didn't he propose the mortgage buy-out as an alternative to the $700 billion bailout when he suspended his campaign and went to Washington to work on this issue? They are different paths with the same intent. It may have, in fact, been a better solution to the credit crisis even if it is an unpalatable and politically difficult one. If things keep going as they're going (since the bail out does not appear to be unfreezing credit lines or restoring faith in the stock market) and people who did not take risks in the last ten years also have to start defaulting on their loans as a result of job losses, etc, would McCain continue to buy-out ever-more mortgages? Where would the line be?


I may be mistaken but if i understand it correctly, his plan is part of the bailout plan.

iVillage Member
Registered: 10-01-2008
Wed, 10-08-2008 - 3:10pm

>>I may be mistaken but if i understand it correctly, his plan is part of the bailout plan. He wants to use $300 billion of that $700 billion to do this.

I believe this is an option under the plan. (The plan has several options that the Treasury Department can choose from.) So, I don't think McCain was suggesting that we spend more money.

Laura

iVillage Member
Registered: 10-01-2008
Wed, 10-08-2008 - 3:12pm

>>TRUE: In July 2007, Obama requested a $3 million earmark for the Adler Planetarium to repair the 40-year-old projector to the Sky Theater, as detailed on his Web site."

It bears mentioning that this has not been approved yet. Plus, the current program at Sky Theater is wildly popular and makes up a large portion of the planetarium's budget -- promoting tourism and encouraging education.

It bugged me that McCain made it sound like it was a dinky projector like the ones we once saw in public schools.

Laura

iVillage Member
Registered: 04-09-2007
Wed, 10-08-2008 - 3:25pm

This is how the "maverick" attacks earmarks every year.

iVillage Member
Registered: 02-24-2008
Wed, 10-08-2008 - 3:36pm

That could be right...it's difficult to tell and if anyone has a clear answer, I'd love to know. The bail out bill is massive (442 pages) and Congress has been talking about additional fiscal stimulus that could include up to 300 billion for a housing program. I think this may be what McCain was talking about but it looks like there's room in the bail-out as well.

My understanding is that the Emergency Economic Stabilization Act of 2008 (ie the bail out) includes the following (this information comes from a conference call held this morning by Goldman Sachs, one of the two investment banks that still exist because they didn't take as much risk as the others):

$700B in total
o Provided in 3 stages:
• $250B
• $100B
• $350B
The Treasury can now start to purchase up to $250 billion of securities, with the next $100 billion available if the President certifies the need to Congress, and the final $350 billion available unless both the Senate and the House pass a joint resolution of disapproval. The whole array of residential and commercial mortgage-related securities is eligible.

o 3 Mechanisms for cash infusion
• purchase assets
• insure assets
• purchase other “financial instruments” (preferred stock included)

There are other elements like the FDIC insurance limit increased to $250,000 from $100,000 and new money market insurance was put in place but they aren't directly relevant to McCain's proposal.

It seems like the details of the bill are sketchy enough still that some of the money could be used to buy down the mortgages of individual homeowners. If that is the case, I am curious as to how they will draw the line between who receives that relief and who does not. How do you make it equitable?

iVillage Member
Registered: 07-16-2008
Wed, 10-08-2008 - 3:53pm

You will have pick of plans you can afford


What does this mean?

Photobucket

iVillage Member
Registered: 02-24-2008
Wed, 10-08-2008 - 4:32pm

Funny you should ask that...I was just looking for other sources because my source was one of Obama's economic advisers (Austan Goolsbee - a professor at the University of Chicago) who came through my town to do a town hall meeting on the economy. He mostly listened to people's concerns and ideas but also explained Obama's economic philosophy. I would like to have a chance to hear McCain's people as well but they are not campaigning in my state.

I realized that I should probably understand what spin (and they all spin their policies) he was putting on their plans and post some links rather than quoting Obama's adviser. So, here's what I've pieced together:
http://www.oxan.com/about/news/2004-06-14Reaganlegacy.asp

As you noted, tax rates were extremely high pre-Reagan - the top tax bracket had federal income tax rates of 70%. In 1981, Reagan lowered the rate to 50% and it stayed there until 1986. The 1981 rate must have been the rate that Obama's adviser was talking about because...in 1986, Reagan cut taxes for the top bracket more drastically to 28% from 50% while curtailing personal tax allowances. In 1991, Bush senior raised the top personal tax rate back to 31%. In 1993, the Clinton administration boosted the top marginal income tax rate all the way to 40% and then GW Bush reduced the top marginal income tax rate back down to 35%. So, Obama would have to CUT taxes for the top bracket by another 7% to equal Reagan's tax rates in the last two years of his administration which is not his plan.

According to the AARP: http://bulletin.aarp.org/states/dc/articles/wealthiest_would_pay_more_under_obamas_tax_plan.html
(lots of good stuff in this article by the way)
Under Obama's plan as it currently stands, the top wage-and-salary income-tax rate will increase from 35 percent to 36 percent and 39.6 percent for the top two brackets (1% of earners) which is similar to rates under Clinton). However, when additional taxes are factored in, it looks like the top income bracket could pay up to 40-50% (the rate that applied for Reagan's first 6 years in office) though Obama's people say those estimates are high.

The capital-gains and dividend tax rates for small businesses earning over $250,000 (top 1%) will increase from 15 percent to 20 percent (again Clinton-era rates). According to the article, earlier this year, Obama's people said that the top capital-gains tax rate of 15 percent might increase to as much as 28 percent -- the rate that prevailed after Reagan reformed the tax system in 1986. So, again, this may be where the Reagan comparison comes in. The Obama campaign now says they won't go above 1990s rates of 20% (per, THE TAX FACTS: THE TRUTH ABOUT THE OBAMA TAX PLAN on his website - also very clear).

It may be that Goolsbee was talking about overall average tax rates (since other tax brackets will have lower taxes) or the distribution of the tax burden being on par with what they were under Reagan as well. Regardless, it's a largely true statement to say that Obama's proposed rates on the highest tax brackets are no higher than those in place for the majority of Reagan's time in office. I think it needs to be caveated with the understanding that Reagan cut taxes drastically to get to 50% and he later lowered the tax rate to way below any other recent administration. In addition, Obama is cutting taxes for the majority of people (95%).
http://freakonomics.blogs.nytimes.com/2008/09/16/competing-tax-plans-two-perspectives/?scp=5&sq=Freakonomics,%20tax%20&st=cse

I like the AARP article because it enumerates the highlights of Obama's tax plan beyond marginal income tax rates.

Avatar for mommastacie
iVillage Member
Registered: 03-20-2003
Wed, 10-08-2008 - 4:42pm

Wow! Thanks for all that info! I knew the basics but not the specific percentages & dollar amounts. :o)


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