Where the candidates stand

LIMA - With voters saying the economy is this year's No. 1 election issue, they are thinking about their wallets, jobs and homes.

Below, we sort out Republican John McCain and Democrat Barack Obama's proposals and positions on taxes, trade, job creation and other economic issues such as housing and credit.

Taxes

While McCain would make permanent all provisions of the 2001 and 2003 tax cuts other than the estate tax repeal, Obama would make permanent certain provisions primarily affecting taxpayers with incomes less than $250,000, according to the Tax Policy Center. Obama also would repeal cuts in the top two income rates.

Obama would increase maximum rates on other kinds of income while McCain would reduce the corporate income tax rate and allow for immediate deductions for investments in certain capital equipment.

Obama also proposes new targeted tax cuts for workers, retirees, homeowners, savers, students and new farmers, according to the Tax Policy Center.

On the estate tax, McCain would create a permanent tax with a $5 million exemption and 15 percent rate. Obama's plan calls for a permanent tax with a $3.5 million exemption and 45 percent rate.

How does that equate to taxpayers' pocketbooks? Most Americans would see tax cuts under both plans, but how they are distributed is very different.

For example, incomes between $19,000 and $38,000 would see a McCain cut of $113 and an Obama cut of $892. Incomes between $112,000 and $161,000 would see a McCain cut of $2,600 and an Obama cut of $2,200.

Larger differences show up with higher incomes: Incomes between $227,000 and $603,000 would see a McCain cut of $7,800 and an Obama increase of $12, according to the center and cnnmoney.com.

Trade

Obama and McCain differ greatly on trade: While Obama favors free trade with certain protections, McCain is a huge supporter of it, linking it to national security, according to the Council on Foreign Relations.

McCain voted for the North American Free Trade Agreement in 1994 and has said that, as president, he will honor it. Obama called NAFTA a "bad" trade deal and has said that, as president, he would renegotiate provisions for worker and environmental protections.

McCain supports the Central America Free Trade Agreement, and Obama opposes it. McCain also supports a pending agreement with Columbia while Obama opposes it. McCain believes opening up Columbian markets is important to the country's stability and move to democracy; Obama believes violence against unions there would make mute worker protections he would insist be in the document.

Both candidates have plans helping transition to new work with training and other assistance for American workers who lose their jobs because of free trade agreements.

Job creation

Obama offers specific programs and investments, along with an overhaul of the health-insurance system and targeted tax cuts to create jobs in the United States.

Obama proposes a $150 billion investment over 10 years to create 5 million new "green" jobs. He would create a fund awarding money to peer-reviewed compelling advanced manufacturing projects and put $60 million on top of the existing federal budget for roads, bridges, air and train systems.

Obama would eliminate capital gains taxes on start-up and small businesses, provide a health-insurance tax credit for small businesses, expand loan programs for small businesses and create training for rural small business, along with a 20 percent tax credit.

McCain points to lowering individual taxes, which helps small businesses because many follow that tax rate, and lowering the maximum corporate tax rate from 35 percent to 25 percent.

He would provide $5,000 for health insurance to every American family. His energy plan would create jobs directly, such as 700,000 with investments to create 45 new nuclear power plants by 2030 and indirectly with lower overall energy costs.

McCain also emphasizes a balanced federal budget and fiscal discipline as a "catalyst for economic growth," according to a campaign policy paper.

McCain would balance the budget by the end of his first term; and freeze nondefense, nonveteran discretionary spending for a year, putting that money toward reducing the deficit and use the time to evaluate needed spending.

Housing and credit crises

McCain and Obama agree on policy to help homeowners caught in the country's mortgage and foreclosure crisis. Both supported a plan that became law earlier this summer allowing people to cancel old mortgage loans and replace them with a Federal Housing Administration guaranteed loan.

Obama also has proposed making a mortgage tax credit, up to $500, available to all homeowners. He wants to make lending rates easier to understand and add new federal protections against mortgage fraud.

Obama wants to create a "Credit Card Bill of Rights" for consumers and create a credit card rating system based on systems used for other consumer products. McCain has proposed protections for college students facing problems with their loans in the credit crunch.

Obama voted against the 2005 bankruptcy law, making it more difficult to claim bankruptcy, and McCain voted for it. McCain also opposed amendments in that bill that would exempt people from bankruptcy when they can prove the debt results from medical expenses. Obama has said he will work to make that proposal law.

With the news from Wall Street last week, the candidates have reacted by saying the financial markets need more regulation. Obama outlined a six-point plan addressing the situation and McCain, who generally favors less regulation, has offered his owns plans as well.

Both candidates have said plans should protect homeowners and investors, not reward those who caused problems.