What Obama proposes to do
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Contributing editor
Emily Hohler Nov 07, 2008
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The 44th American president faces an "epic challenge", says David Von Drehle in Time. For months, Barack Obama and John McCain have been living in a "parallel universe", where society is "reordered at the stroke of a pen". Now Obama has won, he will be "sucked through a wormhole back into the real world" in which Congress, not the President, writes all the laws and gets the last word on the budget, and where consumers decide which cars to drive and how much electricity to use. Fortunately for Obama and his fellow Democrats, they have won significant majorities in the Senate and the House of Representatives, says Gerald Seib in The Wall Street Journal. But although Democrats are now in a position to steamroll their policies into place, "history and the national mood suggest a bit of bipartisanship would be wise".
It would, says a Wall Street Journal editorial. The last three times the Democrats won this kind of victory – in 1964, 1976 and 1992 – they overreached and suffered big losses two years later. But this time the signs are good, says Martin Hutchinson on Breakingviews. Obama reached out to Republicans in his victory speech, suggesting that he wants to build an inclusive government. Even so, Obama's choices will be restricted by the terrible state of the economy. Undeterred he has already developed a list of proposals long and pricey enough to have "deficit hawks screeching at the moon", says John Heilemann in The New York Magazine.
Tax
His plan is a mixture of "commonplace steps", such as tweaking income-tax rates, and "unprecedented measures" (a new and simplified approach to payroll taxes). He has promised tax cuts for the 95% of people who earn less than $200,000 and will raise taxes for those who earn more than $250,000. He also wants to increase corporation tax and capital-gains tax, although small businesses and start-ups will be exempt. The likelihood of all this happening is "remote" as long as the economy is struggling, says Time.
The environment
Obama supports the reduction of America's carbon emissions by 80% by 2050 – an enormously ambitious goal, says The Observer. He plans to invest $150bn over the next ten years in a clean-energy economy which will create five million new jobs. $60bn will be pumped into a National Infrastructure Reinvestment Bank over the same period to help reverse the decay of American roads, bridges and public transport systems.
Healthcare
Obama wants all Americans to be covered by a universal healthcare plan and claims it will reduce annual healthcare costs for the typical family by $2,500. Ideas include creating a business tax credit to help small businesses afford protection for employees and another credit for those on low incomes. Insurance firms will also be required to cover pre-existing conditions.
Foreign policy
Obama is expected to start a phased withdrawal of troops from Iraq immediately, ending in mid-2010, says AFP. By contrast, he wants to step up the military presence in Afghanistan and is expected to ask Europe to contribute more troops. He is in favour of launching a dialogue with Iran and offering incentives to Tehran in exchange for abandoning its nuclear programme.
Trade
Obama's website states that he and Joe Biden will "fight for a trade policy that opens up foreign markets to support good American jobs". He argues that new free trade agreements need to include protection for workers and the environment and plans to end tax breaks for firms that move operations overseas.
Why the win could be good news for Gordon Brown
By voting for Obama the American people have voted for change, and this message will resonate in Britain, says Rachel Sylvester in The Times. According to Andrew Cooper, the director of the polling company Populus, British voters are as anxious for change as the American electorate, and Obama's win is likely to reinforce that mood. Gordon Brown clings to experience as a comfort blanket, but it may not do him much good.
The Camerons will of course hail the Democrat win (and pray that Obama doesn't mess up), but Labour has reasons to be happy too, says Matthew D'Ancona in The Sunday Telegraph. Obama will defer to the judgment of "Gordon the Greybeard", particularly on economic matters. In turn, being friendly with the "most important, popular and generally wonderful man in the World" will be useful to Brown. Labour can also argue that Obama's victory is a vindication of their belief that this is the time for progressive parties who believe in the power of government and regulation to deliver security.
Brown will be hoping to foster a relationship in which you couldn't put a "hanging chad" between him and Obama on energy policy, global warming, financial regulation and the need for 'global alliances', says Mary Riddell in The Daily Telegraph. For him the 'special relationship' has "never been more critical".
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