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Obama outlines strategy on tax
17.06.08
US presidential hopeful Barack Obama says he would boost government spending to spur growth, use taxes to reduce the gap between rich and poor, and possibly lower company tax.
His economic policies would seek to address the problem of competition from developing countries such as India and China, Obama told the Wall Street Journal.
The proposals are likely to alarm free marketeers as being a return to a big-government Democratic platform. But Obama said conditions had changed.
"Globalisation and technology and automation all weaken the position of workers," he said, and government must step in to spread wealth more equally. Economics is shaping up as a major battlefield between Obama and Republican John McCain, who promises to cut corporate tax to 25% from 35%, retain all President Bush's cuts in personal income taxes, and push for more free-trade agreements.
Obama wants to raise taxes on individuals at the top end and provide tax relief to middle- and lower-income households. He has not said how much he would lower the corporate tax rate, but wants to "level the playing field".
He added: "How much you pay in taxes as a corporation a lot of times is going to depend on how good your lobbyist is."
