Not neccessarily the most exciting of topics, the Capital Gains Tax illustrates an important difference between Senator McCain and the Democrats. There is proof that a low capital gains tax helps spur growth in the economy across the different economic levels. Senator McCain’s plan states, “John McCain will keep the current rates on dividends and capital gains and fight anti-growth efforts by Democrats.” The trouble is that Senator Obama all but promised to raise capital gains taxes at the last debate. While many Americans may think since they aren’t heavily invested in stocks and bonds that this tax increase is not a big deal. Others may think that since people with these investments tend to be better off financially its only fair to increase these taxes. The problem with this type of thinking, particularly from a politician like Senator Obama, is that it is not sound economics. An increase in the capital gains tax will slow the economy, and in a time when the economy is already struggling this is a terrible idea. While it’s understandable that many may not see the connection between the capital gains tax and the overall economy, it’s the candidates job to know these issues and understand cause and effect of tax increases. Senator McCain has shown an understanding of how the economy works, while the Democrats have missed the boat.