McCain Unveils Tax Plan

Republican presidential candidate John McCain revealed his tax plan yesterday.  The center piece is his call for an alternative tax system:

When this reform is enacted, all who wish to stay under the current system could still do so, but everyone else could choose a vastly less complicated system with two tax rates and a generous standard deduction. Americans do not resent paying their rightful share of taxes – what they do resent is being subjected to thousands of pages of needless and often irrational rules and demands from the IRS.

Other components of McCain's plan include:

• Cutting Taxes For The Middle Class:
  • Repeal the AMT
  • Double the Personal Exemption for Dependents (from $3,500 to $7,000)
• Pro-Growth Tax Policy:
  • Keep the Bush Tax Cuts (35% top rate, 15% dividends and capital gains rate)
  • Raise Estate Tax Exemption to $10 Million, Cut Rate to 15%
  • Require a 60% Majority in Congress to Raise Taxes
  • Permit Immediate Expensing of Equipment and Technology
• Reduce Corporate Tax Rate to 25% (from 35%)
• Pro-Innovation Tax Cuts:
  • Ban Internet Taxes
  • Ban New Cell Phone Taxes
  • 10% Tax Credit for Wages Spent on R&D
• Retirement Tax Cut:  Lower Medicare Premiums

Press and blogosphere coverage:

• The Atlantic
• Associated Press
• Bloomberg
• New York Times
• Reuters
• U.S. News & World Report
• Wall Street Journal (Editorial, News Report)
• Washington Post