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Expert examines Obama's economic plan
posted by: Dan Boniface , Web Producer  
written by: Simone Wilkinson , Reporter  
created: 8/28/2008 8:10:05 PM
Last updated: 8/28/2008 9:17:03 PM
DENVER - The economy is on the minds of many Americans, as the presidential election approaches.

In the next two weeks, 9NEWS Business Reporter Simone Wilkinson will look at both Sen. John McCain's and Sen. Barack Obama's economic plans.

This week, a look at the Democratic presidential nominee's:

His motto is "Change," but will Barack Obama put change back into your pocket if he becomes president, or ask for you to give more to the government?

It can be pretty confusing figuring out what a candidate stands for. Mac Clouse is a professor of finance at the University of Denver.

He points out the top three points of Obama's economic plan.

"The main three are higher taxes on the upper income, maybe even some tax breaks for the lower income, and more government programs in areas of health care, jobs and education. These are all the things trying to get the middle class up to a higher level of life," said Clouse.

Clouse says the capital gains tax and the dividend tax rate are supposed to go back up to the normal income tax rates in 2010. A lot of people were hoping those rates would stay low, but Obama's plan will definitely push them back up.

"A lot of his plan is about bringing back the middle class to some prominence in this nation, and as such, he's looking at increasing government services. You will see a lot of government spending in his plan. Especially targeted toward the lower income levels and the middle class," said Clouse.

Under Obama's plan, tax rates would also increase for upper income classes. But, some studies suggest upper income is as low as $40,000.

"Remember, any plans he has still have to go through Congress as well and that maybe some of these things sound extreme but they may not come to pass," said Clouse.

Next week, the Republican National Convention will get under way in Minneapolis - St. Paul, Minn., and we will tell you the top three points of McCain's economic plan.


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