Isn't it amazing how so many facets of conservative economic policy converge on some variant of "Give the rich more money," and end with some version of, "And this will help the middle class and the poor." Like the Underpants Gnomes, they just never get around to filling in that middle part with anything coherent. The clever cons know it's a scam. But I'm pretty sure this is what a lot of grassroots conservatives, mostly the duller or more ignorant ones to be sure, really believe.
Apparently the rest of us are just supposed to be so stupid or apathetic that we never point out that, despite almost three decades of cutting taxes on billionaires, the trickle-down economic Promised Land never seems to materialize (We did manage to accrue one hell of a national debt though!). Why, if I were a cynical person, I'd say all this supply side and trickle down conservative bullshit was just a ruse to defend the class warfare that's been in effect since the dawn of civilization: take from the poor and powerless and give to the rich and powerful.
McCain of course rightly senses the jig of giving zillionaires even more zillions is in jeopardy, what with gas prices at 4 bucks a gallon and the economy crumbling after eight years of George Bush the CEO President. But being a staunch defender of the wealthy, McCain he has to try something. So he tried this:
This Week -- Senator Obama says that he doesn’t want to raise taxes on anybody over — making over $200,000 a year, yet he wants to nearly double the capital gains tax. Nearly double it, which 100 million Americans have investments in — mutual funds, 401(k)s — policemen, firemen, nurses. He wants to increase their taxes. --John McCain
The problem is that is flatly false. It is in fact so fundamentally, embarrassingly wrong that if any other Presidential contender said it, that comment alone might be the end of their bid for the White House.
Investments contained in 401-K's (Or in the case of 'policemen, firemen' usually a 403-B), pensions, IRAs, tax deferred variable annuities, and similar retirement vehicles aren't subject to capital gains tax -- they're not taxed at all. Changing the capital gains tax rate will have zero effect on them. Withdrawals from tax deferred accounts by retirees are generally taxed at whatever the income tax rate is for that person at the time of withdrawal (Which, incidentally, is usually a hell of a lot more than the current long term capital gains tax rate, yet another way to rip off the middle class).
This feature of pension and retirement accounts is about as fundamental as it can get in the retirement planning and tax preparation business. Most laypeople over age 40 know this; let alone rookie financial advisors studying for the series 7, or a barely legal teen on her first day at H & R Block. For McCain not to know that would be, well, terrifying, as this is something that will affect upwards of 80 million freakin retirees during his potential Presidential term[s]. The other possibility is he knowingly lied.
I'm not sure which one of those options is worse, a candidate running for President in the midst of the worst economic crises since the Arab Oil Embargo who can't handle the most basic features of retirement and tax policy, or one who just lies his ass off about it in hopes of handing more money to billionaires. Then again there is a third and even more chilling possibility, one I dearly hope is off the mark: John McCain is struggling with some kind mental or memory issue, he can't remember shit.