Who's side are you on? Here's where John McCain and Barack Obama stand on 10 key issues. Who would you vote for?

• Author: Smith, Patricia
• Position: Cover story

THE ECONOMY

THE ISSUE Even before Watt Street's September meltdown, the American economy was weakening as real estate prices sank, foreclosures and unemployment rose, and higher energy prices took a tort on America's wallets. It's no wonder the economy tops the list of voter concerns.

McCAIN wants to make President Bush's tax cuts permanent, and cut the corporate tax rate from 35 percent to 25 percent to make American companies more competitive and spur economic growth. At the same time, he promises to balance the federal budget by 2013 with a one-year freeze on most discretionary spending, and by eliminating earmarks (funding for special projects in lawmakers' states and districts, like Alaska's infamous "bridge to nowhere"). Though he has long pushed for less government regulation of business, since the financial meltdown he and running-mate Sarah Palin have railed against Wall Street excesses and called for greater government oversight.

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OBAMA wants to repeal the Bush tax cuts for households earning more than $250,000 a year, and use the additional revenue to cut taxes for middle- and working-class families. He says he would raise taxes on capital gains (profits on the sale of a house or stock, for example), enact a "windfall profits" tax on oil companies, and end tax breaks for companies that move jobs overseas. In response to the current financial crisis, Obama has called for more government regulation of investment banks, mortgage brokers, and hedge funds, whose risky practices all contributed to the problem.

IRAQ

THE ISSUE After more than five years of war and more than 4,100 American combat deaths, there are about 155,000 U.S. troops in Iraq. When and how should U.S. troops leave?

OBAMA says he would remove all combat brigades from Iraq within 16 months of taking office, with a much smaller force remaining for counter-terrorism missions and to protect U.S. diplomatic and civilian personnel. He says that a timetable for withdrawal will force the Iraqi government to get its act together and govern more effectively.

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McCAIN opposes any timetable for withdrawing U.S. troops and says we must stay the course until Al Qaeda in Iraq is defeated and Iraqi forces are able to take over. A leading advocate of President Bush's troop surge, McCain believes that the best way to secure long-term peace in the region is to establish a stable and prosperous democracy in Iraq.

ENVIRONMENT

THE ISSUE Both Obama and McCain believe that greenhouse gases are causing global, climate change, are concerned about its tong-term effects, and support a controversial, cap-and-trade program to reduce carbon emissions from industry. (A cap-and-trade system means factories and other pollution sources get a pollution "allowance." Those using less than their allotment can sell. the remainder to other pollution sources that are using more.)

McCAIN favors giving away pollution allowances initially, and then letting companies buy and sell them. His goal is to reduce emissions to 60 percent below 1990 levels by 2050. McCain says he would consider joining an international treaty to reduce emissions if China and India participate. He cites President Teddy Roosevelt, who created our national parks system, as his model on environmental policy, and supports more money for national parks and protecting open space.

OBAMA would auction off the cap-and-trade pollution credits, with some of the revenue used for the development of clean-energy technology (see Energy). Obama's plan aims to reduce carbon emissions to 80 percent below 1990 levels by 2050. He also promises to beef up federal clean-air and clean-water standards.

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ENERGY

THE ISSUE High oil. and gas prices are a huge burden on the economy, and America's dependence on unstable and unfriendly sources of foreign oil is a threat to national. security.

OBAMA wants to invest $150...