Yesterday, John McCain announced his "Pension and Family Security Plan."
Yes, the announcement is congested with populist hyperbole, but it does contain a few nuggets of economic wisdom.
- Reduce the capital-gains tax rate to 7 1/2 percent for years 2009 and 2010.
- Increase the amount of capital losses that can be "written-off" from $3,000 to $15,000 for years 2008 and 2009.
- Withdrawals from tax-deferred retirement accounts taxed at the lowest rate (10 percent) for the first $50,000 withdrawn.
- Suspend the rules forcing seniors to sell retirement-account holdings when they reach age 70 1/2.
- Keep the Bush tax-rate cuts in place.
While I'd prefer a simplified tax-code and a flat income tax rate, these are still very good, pro-growth ideas and a step in the right direction. He would improve them 10-fold by making them all permanent, but we can battle for that another day.
The only question that remains ... can John McCain sell it?
