Tax cuts can only be introduced by a freeze on government spending. Such a freeze would make resources available to fund such tax cuts. This is the McCain approach. McCain has advocated a freeze (excluding military spending). He has promised a war on waste and pork barrel spending. He has a strong track record in opposing pork barrel spending. Obama on the contrary has been a strong proponent of pork barrel spending and has voted for 94 tax increases.
When challenged on a public expenditure freeze-in the first debate-Obama ran for cover and fudged the issue.
Obama’s plans to double the capital gains tax is a further ingredient in the current instability. The likelihood of an Obama victory could trigger a further massive sell off on the stock market as investors seek to avoid higher capital gains tax rates.