Election Day, What Does That Mean for Your Finances?

Few Presidential campaigns have been run in the midst of crisis on the scale the US, and the World is currently facing. Whomever wins this historic election is going to immediately step into uncharted and choppy waters. Senator Barack Obama and Senator John McCain have very different views on this financial crisis. What might the fate of this election mean for you?

Hope for Homeowners

Both candidates have pledged to go beyond the current economic stabilization plans legislated in the last few months and focus their plans on the homeowner.

McCain presents a $300 billion "Homeownership Resurgence Plan" that would leverage the existing $700 billion bailout plan to "purchase mortgages directly from homeowners and mortgageservicers, and replace them with manageable, fixed rate mortgages." (source: www.johnmccain.com)

Obama would create a "Universal Mortgage Credit" that would "create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 of 10 million homeowners, the majority of whom earn less than $50,000 per year." (www.barackobama.com)

Unemployment

The new President is also likely to see the continued rise in unemployment, potential far exceeding the current levels just over 6 percent.

Both candidates are positive on additional fiscal-stimulus programs currently being proposed in Congress.

McCain's economic plan seems to focus more on taking the "hatchet" to government spending and stimulating business. A blend of small business and corporate tax breaks as well as incentives for businesses engaged in solving US energy dependence.

Obama's economic plan takes a "scalpel" approach to government spending. But the real punch follows the Congressional Democrat's proposal to invest in infrastructure projects like schools, roads, and bridges with the addition of a $50 billion in consumer tax rebates.

Taxes

Taxes have been a hot button in most of the Presidential debates, with both candidates claiming tax cuts. However, each has a very different definition.

McCain would focus his tax cut and incentives on small business, corporate tax rates, and capital gains. McCain also believes the Internet should remain free of taxes to leverage the US technological advantage.

Obama would provide a tax cut or credit to households that earn less than $200,000, while raising taxes on those earning over $250,000.

Certainly the financial crisis will still twist and turn prior to either candidate taking office. However, the fate is certain for the next President--there will be challenges and crisis when you arrive.