McCain Proposes $52.5 Billion Plan

(AP) – John McCain wants the government to stop taxing unemployment benefits and start lowering taxes on senior citizens who tap into their retirement accounts.

The proposals are part of a $52.5 billion economic plan he’s unveiled Tuesday near Philadelphia.

McCain wants to lower the tax rate on Individual Retirement Accounts and 401(k) plans to the lowest rate, 10 percent, on the first $50,000 withdrawn. The campaign estimates that would affect 9 million people over the age of 60.

As for ending taxes on unemployment benefits, McCain’s campaign says recipients would see an average increase of nearly 10 percent.

Other tenets of the McCain plan include reducing the tax rate on capital gains to 7.5 percent for two years.

McCain’s proposal comes as Republican campaign veterans say he needs to do more than just criticize Barack Obama, especially in an economic environment that favors Democrats.

On the Net:

McCain campaign: http://www.johnmccain.com/

Obama campaign: http://www.barackobama.com/index.php

(Copyright 2008 by The Associated Press. All Rights Reserved.)