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Obama Campaign Criticizes Rival McCain's Economic Proposals

By Alison Vekshin

July 6 (Bloomberg) -- Democratic presidential candidate Barack Obama's advisers criticized Republican rival John McCain's economic proposals as both candidates prepared to focus on the U.S. economy this week.

McCain's plan is tilted toward corporations and the most affluent, neglects middle-class Americans and lacks immediate solutions, Obama's advisers said today in a conference call with reporters held to unveil a report critical of the Arizona senator's proposals.

``John McCain has essentially no ideas to get the economy going and create jobs in the short run,'' said Jason Furman, Obama's economic policy director.

The economy is a top concern among U.S. voters as Americans face rising gas prices, food costs and foreclosure rates.

``Barack Obama's words say one thing, but in reality he's proposed raising taxes on job-creating small businesses, millions of seniors and has even voted for higher taxes for Americans making as little as $32,000 a year,'' Doug Holtz- Eakin, McCain's senior policy adviser, said in an e-mailed statement.

McCain's plan to cut taxes for the middle class by increasing the dependent exemption leaves out 101 million households without children, according to Obama's report. His plan gives tax cuts to the nation's wealthiest 2 percent and to large corporations, the report said.

McCain has proposed permanently repealing the alternative- minimum tax, which would save middle-class families almost $60 billion annually, according to his campaign Web site. He plans to maintain rates on dividends and capital gains and supports raising the tax exemption on estates worth up to $10 million.

Obama, a senator from Illinois, is calling for a second stimulus plan that would include at least $50 billion for another round of rebate checks and a $10 billion foreclosure- prevention fund to offer struggling homeowners counseling and refinancing assistance, according to his report.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net.

Last Updated: July 6, 2008 14:53 EDT

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