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McCain Fights Back (Finally)

John on October 6, 2008 at 1:12 pm

After weeks of Barack Obama and his Democratic allies repeating “deregulation” like a mantra, John McCain is finally going to set the record straight:

This crisis started in our housing market in the form of subprime loans that were pushed on people who could not afford them. Bad mortgages were being backed by Fannie Mae and Freddie Mac, and it was only a matter of time before a contagion of unsustainable debt began to spread. This corruption was encouraged by Democrats in Congress, and abetted by Senator Obama.

Senator Obama has accused me of opposing regulation to avert this crisis. I guess he believes if a lie is big enough and repeated often enough it will be believed. But the truth is I was the one who called at the time for tighter restrictions on Fannie Mae and Freddie Mac that could have helped prevent this crisis from happening in the first place.

Senator Obama was silent on the regulation of Fannie Mae and Freddie Mac, and his Democratic allies in Congress opposed every effort to rein them in. As recently as September of last year he said that subprime loans had been, quote, “a good idea.” Well, Senator Obama, that “good idea” has now plunged this country into the worst financial crisis since the Great Depression.

This is a good start, but it’s not enough. Tying Obama’s party and his personal fondness for subprime mortgages to the current crisis won’t win McCain the election at this point. What could is to start with the subprime debacle and build on it.

Barack Obama has been coasting on his claim to “reduce taxes for 95% of Americans.” This is dishonest in several ways and tomorrow night at the debate, McCain needs to call Obama on it.

  1. Only about 70% of Americans pay federal taxes. If you’re in the bottom third of earners, you’re not paying. So how can Obama promise a “tax cut” to people who pay no taxes? Simple, he’s going to send a check to people who didn’t pay. The “tax cut” is actually bald, socialist income redistribution. McCain needs to call him on it.
  2. In 2002, the top 5% earned 30.6% of the total family income in the US but were already paying 53.8% of US federal taxes. Obama has proposed $900 billion in new spending on everything from college assistance to health care, but promises to take that from the same 5% of earners. Problem is, he can’t get $900 billion out of the top 5% of Americans unless he wants to raise their taxes well over 60%. Why should the top 5% pay something approaching 2/3 of America’s taxes while, under Obama’s plan, nearly 40% pay nothing or get money they never earned? This may work well as a campaign promise but it’s a recipe for disaster for our system and, frankly, the end of the American dream.
  3. There is evidence from Canada, from England and from other places where socialized medicine is the norm that the system is not working and not sustainable. Before we turn the US into a Canadian style system, we might want to talk about the abysmal record of their system and the number of critically ill patients who high-tail it to the US to avoid months of delays on time-sensitive procedures. We don’t even need to look abroad. Just have a look at giant federal schemes like social security (which will be insolvent in a few decades) and you can see where government health care will lead us.
  4. As noted here at VS, Obama has made major changes to his own initiatives since the conventions. Should America really trust someone who isn’t sure what his proposals are less than two months before the election?

If McCain wants to win, he needs to stop ceding Obama all of this territory. The fact is, Obama’s promises don’t add up and won’t be good for the country, especially in a time of crisis. The media won’t point this out, so McCain is going to have to do it himself.

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Category: Politics |

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