Candidates focus on workplace, HR issues

HR Magazine, Sept, 2008 by Bill Leonard

Presidential candidates John McCain, R-Ariz., and Barack Obama, D-Ill., have HR on their minds as they talk about the impact of the economic downturn on Americans.

Providing solutions for the troubled economy will be the primary focus of both campaigns, political observers agree. Workplace-related issues will loom large as Election Day approaches.

Appearances in Michigan by McCain and Obama show not only is that state important to winning the 2008 election but also that support for the nation's troubled auto manufacturers will be a key issue.

Obama and the Democratic leaders in Congress have said they plan to push for a second $50 billion stimulus plan in September. The plan would include tax credits and low-cost loans for automakers, which would protect thousands of U.S. jobs, they claim.

McCain opposes the loan program to automakers; he planned to propose a $5,000 consumer tax credit for fuel-efficient vehicles and a $300 million prize for companies that design a viable alternative fuel or electric battery vehicles.

Health Care Debated

While escalating food and fuel prices combined with the shaky economy are the top concerns of most voters, health care reform remains a hot issue. Obama and McCain have released details of their health care reform plans.

McCain's proposals would change the tax code and other federal laws to make health insurance more affordable and portable.

One of the keys to McCain's proposal is to keep the options of employer-based coverage open and to create a tax credit of $2,500 for individuals and $5,000 for families to help pay for health insurance.

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McCain claims that his plan will give consumers the opportunity to select the coverage that suits them and their families best. Any person, under McCains's plan, who purchases an innovative insurance plan that costs less than the tax credit would then be able to deposit the remainder in a health savings account.

A key element of Obama's plan would be to require employers that do not provide health benefits to their employees to contribute a percentage of their organization's payroll toward the cost of a national health insurance plan. Small businesses would be exempt from the requirement and would receive health care tax credits to reduce the costs of providing health benefits to their workers.

The Obama plan would create a National Health Insurance Exchange to help individuals who want to purchase private insurance policies. The exchange would act as a watchdog group and help reform the private insurance market by creating new rules and standards for participating insurance plans.

By Bill Leonard, senior writer for HR News.