Any good ideas on how to get this out? I am guessing a small
drill bit (I don' t have a dremel).

It's plastic, correct? Try soaking it in Liquid Wrench or other penetrating oil first, then use a small knife to slice into the edge, while loosening it towards the left.

Another option would be burn it out with a blow torch, which might help with the rust on the BB spindle nut.

That's the first "Schwinn Approved" crank arm I've ever seen. What model bike is it on.

My quick guess is a mid to late 70's Traveler. Simple lug BB, bolt on kickstand bracket, color, etc.,,,,BD

Waits to see how right or wrong I am......

A electric soidering gun melt that sucker

Made in Japan Le Tour.

Try and see if you can melt it with acetone or lacquer thinner.

I always use a pocket knife on plastic and aluminum caps.

1) Go to your local bike shop and see if they have an old intact plastic dust cap in good shape they will sell you for 25 cents that matches the dust cap in the crank arm on the other side of the bike

2) Cut off the entire threaded portion of the just acquired plastic dust cap leaving the button shaped end intact

3) Glue the remaining button end over the old embedded remains of the dust cap stuck in the crank arm.

4) Sell bike on Craigslist.

#1: Shove 14mm socket in there and pull the bolt.

#2: Acquire small flat blade screwdriver.

#3: Carefully tear the remains out.

-Kurt

Thin pair of needlenose pliers. Grab and pull. Once a chunk comes out the whole thing will let go.

Using a Hammer and screw driver, hitting in an anti clockwise direction to turn it out is another option.

Less then 5 minutes with a pocket knife. Good advice!

2nd for I...
This was the first. A Valentines gift from the GF.