Mr. McCain addresses this problem directly by proposing to slash the federal corporate-tax rate from 35% to 25%. He also proposes immediate expensing for capital investment, which means that capital costs can be deducted in the year they are incurred, like all other business expenses, rather than spread over many years under arbitrary depreciation schedules. Making the Bush tax cuts permanent, as Mr. McCain has pledged to do, would leave the top individual income-tax rate at 35%, the capital gains and dividends tax rates at 15% and eliminate the repetitive death tax. He would also double the personal exemption for children and other dependents from $3,500 to $7,000.