Obama, McCain reveal new plans to help revive economy

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WASHINGTON: Nov 03 (Agencies): The United States presidential election of 2008, scheduled for Tuesday (November 4), will be the 56th consecutive quadrennial United States presidential election and will select the President and the Vice President of the United States.
The two main presidential candidates are John McCain from the Republican Party and Barak Obama from the Democratic Party.
The Republican Party has chosen John McCain, the senior United States Senator from Arizona as its nominee; the Democratic Party has chosen Barak Obama, the junior United States Senator from Illinois, as its nominee.
The 2008 election is particularly notable because it is the first time in US history that two sitting senators will run against each other for president, and because it is the first time an African American is a presidential nominee for a major party, as well as the first time both major candidates were born outside the continental United States-Hawaii for Obama and the Panama Canal Zone for McCain.
Since the Republican nominee for vice-president is a woman, Governor Sarah Heath Palin, the eventual winning ticket is very likely to be historic, as neither an African American nor a female has achieved either office. The Democratic nominee for vice-president, Senator Joseph Biden, would be the first Roman Catholic vice president.
The election will coincide with the 2008 Senate elections in thirty-three states, House of Representatives elections in all states, and gubernatorial elections in eleven states, as well as various state referenda and local elections.
As in the 2004 presidential election, the allocation of electoral votes to each state will be based partly on the 2000 Census.
The president-elect and vice president-elect are scheduled to be inaugurated on January 20, 2009.
Barack Obama and John McCain have both revealed new plans to help revive the US economy, which could be facing a recession following the financial crisis.
Obama Economic Plan: Democratic US presidential candidate Barack Obama has unveiled an "economic rescue plan for the middle class".
At its heart is a $60bn expansion of spending to help individuals, companies and states hit by the slowdown.
These benefits include:
Temporary tax credits for firms that create jobs in the US A 90-day moratorium on foreclosure for homeowners who are making "good faith" efforts to keep up their payments
Temporary elimination of tax on unemployment benefits
A new body to lend to state and city governments who are finding it hard to get access to credit markets
Penalty-free withdrawals of up to $10,000 from people's retirement savings plans
These proposals are additional to the $115bn in tax cuts to households earning under $250,000 that Mr Obama has already proposed.
Senator Obama's plan follows the approach adopted by Congress in its earlier economic stimulus package, which gave temporary and targeted, rather than broad-brush help.
The key elements are:
US government to buy up distressed mortgages and refinance them at lower values, letting borrowers enjoy more affordable rates.
New lower Federal tax rate of 10% on the private pension income in 2009 and 2010.
Expanded tax deduction for investment losses in 2008 and 2009 and a 50% increase in the capital gains allowance Tax-free unemployment benefits for two years. People with share-based retirement accounts allowed to postpone withdrawals until markets improve
On international issues of concern, like Iraq, there are some strong differences between the two US Presidential candidates.
Arizona Senator and Vietnam War hero John McCain (Republical Party candidate) who, if elected, would be the oldest man to become president, voted for 2003 invasion and backed Bush troop escalation. He had said US forces should remain until Iraq is able to defend itself, but now predicts under his presidency most would be withdrawn by 2013.
Illinios Senator Barrack Obama (Democratic Party candidate) who, if elected, would be the first black US President opposed the war in Iraq from the outset and says there is "no military solution". He opposed "surge" strategy and backs phased withdrawal of US forces - with all troops out of combat operations within 16 months of taking office.
On Iran, McCain would focus on trying to get a league of democracies to escalate economic sanctions against Iran. He refuses to rule out military solution if necessary to prevent a nuclear-armed Iran. He will support no unconditional diplomacy.
Obama favours "aggressive personal diplomacy". He would like to meet Iranian leaders without preconditions. He says they would change their behaviour if given incentives to do so. Military option not off the table for him.
About national security, McCain has argued that his military background equips him to safeguard national security. A former Vietnam POW, he has sought to prevent the CIA using "cruel, inhumane or degrading treatment".
On this, Obama says Bush foreign policy has put US at more risk. He would build alliances. Wants increased national security funding to be allocated to areas most at risk of attack.