McCain unveils new economic proposals before debate

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The Arizona senator also said he would eliminate taxes on unemployment benefits and planned to cut the capital gains tax in half, from 15 percent to 7.5 percent, through 2009.

US Democratic presidential nominee Senator Barack Obama (D-IL) makes a statement on the economy at the Maumee Bay Resort in Oregon, Ohio October 14, 2008. (Jim Young/Reuters)

McCain criticized the economic measures that Obama presented on Monday, arguing that the Democrat used to stand for higher taxes, but now offers tax cuts.

Obama responded by attacking McCain's proposal to buy homes at full price from banks, as well his plan to cut the capital gains tax.

Barack Obama, Democratic Presidential Candidate, said, "If the idea is to cut capital gains taxes, when I don't know anybody, even the smartest investors, who right now are going to be experiencing a lot of capital gains. That probably is not going to be particularly useful in solving the financial crisis."

Analysts said individuals and families who made around 150-thousand dollars would benefit from Obama's tax plans, while those who made more than 250-thousand dollars a year would benefit under McCain's scheme.

But some believe the US economy would be worse off under either McCain or Obama, since both sets of plans could cause a larger budget deficit.

Editor:Zhang Pengfei