SMALL BUSINESS

As the financial crisis deepened, OBAMA proposed a $5 billion small business rescue plan aimed at stoking growth through tax tax cuts and by freeing up capital.

OBAMA's plan includes eliminating all capital gains taxes on investments to small and start-up businesses. He also called on the Small Business Administration to offer fixed-rate loans directly to small firms that don't have other sources of capital. He also proposed extending through 2009 expensing rules that let small businesses write off the total cost of capital goods up to $250,000 in the year they were purchased.

OBAMA also backs a plan to expand the Small Business Administration's loan and micro-loan programs, which provide start-up and long-term financing for small businesses that can't get financing through other channels. OBAMA wants to expand the network of lenders and simplify the loan process. He also proposes creating a national network of public-private incubators to help start-up companies, with a government investment of $250 million per year.

McCAIN has not outlined specific plans for revamping SBA programs and generally favors a smaller, not a bigger government role. His aides say his overall economic plan, which is centered on lower taxes for everyone, will boost the economy, which is the best way to help small businesses.

McCAIN opposes any further increases in the minimum wage, which he says would hurt small businesses. OBAMA favors indexing it to inflation.

McCAIN's health care plan would tax benefits provided by employers and give individuals a tax credit of $5,000 for families to buy insurance on the open market. OBAMA would require companies to provide health insurance or pay a fee, but he promises a $6 billion in credits over 10 years to help small businesses provide health care.