WILMINGTON, North Carolina (AFP) — A freeze on foreclosures will not be part of a new economic rescue plan Republican John McCain will present to voters Tuesday, a senior aide told reporters Monday.
Instead, the Arizona senator will focus on helping those who have not yet fallen into default while working to support housing prices, stimulate growth through tax cuts and rein in government spending, said senior policy adviser Doug Holtz-Eakin.
"Let's not debate the best way to fail, which is what a foreclosure moratorium is," Holtz-Eakin said of a plan proposed by McCain's opponent, Democratic presidential hopeful Barack Obama.
While McCain "doesn't want people in foreclosure" he believes the best way to address the nation's housing crisis is to use a portion of a 700 billion dollar rescue package to help people renegotiate their existing mortgages at better rates, Holtz-Eakin said.
"That is a far superior approach because it both keeps individuals in their home, keeps their families in the place they want to live, and also supports housing values," he said in a conference call.
Holtz-Eakin would not provide details about McCain's new proposals, but told reporters they would be far superior to those offered by Obama on Monday.
McCain will present "specific new measures to address those hurt worse by this financial crisis" and will build upon the "vision that has been in the process of being fully depicted since the beginning of the campaign."
Holtz-Eakin warned that Obama's policies are "threatening the American economy with tax increases, explosive spending proposals, expensive health mandates a weak energy policy and protectionist trade inclinations."
"It's a set of policies that will in fact kill jobs and make things harder, and part of the problem is he's also spending money hand over fist."
McCain plans to freeze spending for all but the most critical government programs while also offering targeted tax cuts which will stimulate growth, he told reporters.
"Senator McCain is focused on keeping taxes low in target ways to have pro-growth tax policy," Holtz-Eakin said. "He wants to reward companies that stay here in American and are willing to create jobs and opportunity."
Obama's proposed 3,000 dollar tax credit for each new job created in the United States by firms over the next two years would fall far short of compensating for the increased costs imposed by Obama's health care plan, he added.
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