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North Carolina is Key Campaign Battleground State
Businesses Hold Pivotal Votes to Shape the Future
The 2008 Presidential race has become this election cycle’s most vigorous and consuming contest and, surprisingly, all eyes are on North Carolina. Our state has become a general-election battleground, one of the handful of states where both Presidential candidates are competing heavily with personal appearances, huge campaign staffs on the ground and millions in political ads airing on TV and radio during these final weeks before Election Day. For the first time in nearly thirty years, North Carolina is considered by most political pundits to be in play, and that’s placed our state on the national stage.
As our nation and state are experiencing the most severe economic crisis in recent memory, the outcome of this year’s Presidential election will have an enormous impact on North Carolina’s future. The North Carolina Chamber strongly encourages its members – owners of businesses of all sizes and sectors and their employees – to be engaged this election year. Too much is at stake for business not to be actively involved in shaping North Carolina’s future.
Our Chamber and its members share the common objective of developing and sustaining a sound and growing economy built on global competitiveness and fairness that will generate revenue for the future and create prosperity for all North Carolinians. Our vision for North Carolina’s future includes world-class education systems that produce a globally competitive 21st-century workforce and a business climate that fosters investment and creates plenty of good jobs for North Carolina residents.
In this e-newsletter, our state Chamber compares the Presidential candidates on critical issues central to our vision for prosperity and North Carolina’s future. Our Chamber urges our members, as business owners and employees, and all those who share our objectives and vision to keenly evaluate the Presidential candidates’ positions on these relevant and vital issues with our collective future in mind.
Taxes
Individual Income Tax | Sen. Barack Obama: Increase top two rages to 36% and 39.6% | Sen. John McCain: Keep top two tax rates where they are at 33% and 35%
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Corporate Tax
Sen. Barack Obama: Reduce tax rate only for companies
that expand or start in the U.S., while repealing breaks for companies that retain earnings overseas. | Sen. John McCain: Reduce tax rate from 35% to 25%. |
Capital Gains
| Sen. Barack Obama: Increase tax rate to 20% for individuals making more than $200,000 and eliminate tax on investments in small businesses and startups. | Sen. John McCain: Maintain current 15% tax rate. |
Estate Tax
| Sen. Barack Obama: Collect 45% tax on estates worth more than $3.5 million. | Sen. John McCain: Collect 15% tax on estates worth more than $5 million. |
Healthcare
Sen. Barack Obama:
- Would create national health insurance exchange for individuals to buy coverage, including a government-sponsored plan similar to the one offered to federal employees.
- Would provide small businesses with a tax credit to offset cost of health insurance premiums.
- Would require larger employers to pay additional taxes if they don't provide health insurance.
| Sen. John McCain:
- Would provide a refundable tax credit of $2,500 to individuals ($5,000 per family) for health insurance premiums; employer-provided benefits would be treated as income.
- Would allow individuals to purchase health insurance nationwide across state lines.
- Would work with states to establish a guaranteed access plan for individuals who have been denied insurance because of pre-existing conditions or other reasons.
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Energy
Sen. Barack Obama:
- Would impose a "windfall profits tax" on domestic oil companies with revenues transferred to taxpayers in form of a $1,000 "Emergency Energy Rebate."
- Would mandate a "use it or lose it" policy on oil and gas leases.
- Would mandate 60 billion gallons of advanced biofuels in fuel supply by 2030.
- Would swap light oil from the Strategic Petroleum Preserve for heavy crude oil.
- Supports clean coal public-private partnerships.
- Would oversee construction of Alaska National Gas Pipeline.
- Renewable Portfolio Standard would mandate 25% of electricity come from renewable sources by 2025.
| Sen. John McCain:
- Would lift the ban on offshore drilling and oil shale recovery and expand exploration, development and production at home.
- On nuclear plant construction: 45 new plants by 2030.
- Would implement a uniform system of tax credits for alternative, low-carbon fuels such as wind of solar.
- Supports a $300 million prize to improve battery technology.
- Would reduce red tape to upgrade the nation's electricity grid.
- Says the federal government should "lead by example" on building efficiency standards.
- Supports $2 billion annually for clean coal technology.
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Environment
Sen. Barack Obama:
- Would tell the EPA that it may use the 1990 Clean Air Act to set emissions limits of carbon dioxide.
- Automobile CAFE standards increased 4% per year - $4 billion to domestic automakers to "retool" plants and produce these vehicles.
- Cap-and-Trade system to reduce greenhouse gas emissions 80% by 2050.
| Sen. John McCain:
- Has not said how he would treat carbon dioxide under the Clean Air Act.
- CAFE: revisit penalties on automakers not following standards.
- Cap-and-Trade system to bring emission levels below 1990 levels by 2050- small businesses exempt from participating in the system.
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Labor
Sen. Barack Obama:
- Would change union organizing rules to allow the "card-check" system, which replaces secret-ballot elections for employees deciding whether to join a union and would impose mandatory binding arbitration and a two-year "lock in" on contracts.
- Would raise the minimum wage and index it to increase with inflation.
- Would create incentives for states to impose paid sick leave mandates (with a $1.5 billion start-up fund).
- Would expand the Family Medical Leave Act to cover businesses with only 25 employees (from current 50-employee threshold) and expand the number of purposes for use (elder care, kids' academic activities, etc.)
| Sen. John McCain:
- Opposes the card-check system in union organizing rules and supports maintaining secret-ballot elections for employees deciding whether to join a union.
- Would review current labor laws and rules and potentially change them to enable more workplace flexibility, work-at-home arrangements, health coverage and retirement plan portability, and more choice in job training assistance (National Commission on Workplace Flexibility and Choice).
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Infrastructure
Sen. Barack Obama:
- Use $60 billion to create a bank to invest in projects to improve roads, ports and mass transit.
- Supports development of high-speed trains.
- Opposes raising the federal gasoline tax.
| Sen. John McCain:
- Shift financing from earmarks to the most pressing projects; ask states and municipalities for input.
- Supports modernization of transit system; no specifics
- Opposes raising the federal gasoline tax.
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Sources:
Triangle Business Journal
Small Business & Entrepreneurship Council,
News & Observer
Other Issue Comparison Sources:
Charlotte Observer
Philadelphia Inquirer
Chamber to Host 1st Annual Tax Conference
Our Chamber will be hosting its First Annual Tax Conference on November 13th, 2008 at the Harris Conference Center in Charlotte. State and federal tax experts will address a number of tax issues most vital to North Carolina businesses, including an overview of recent tax changes made by the General Assembly and upcoming tax challenges that need to be addressed - the tax plan of the US President-elect among them. To register for this informative and valuable event or find out more information about the conference, visit our Chamber online at www.ncchamber.net/08taxconf
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