Clinton's Economic Stimulus Plan: In a speech January 22, Hillary Clinton suggested the following four actions be taken immediately:
- The President convene the Working Group on Financial Markets, and coordinate with regulators around the world.
- The President's package must include relief for mortgage holders.
- Include the 50-70 million people, mostly Senior Citizens, who do not pay income taxes.
- Liberalize the bankruptcy law.
An earlier economic stimulus plan also includes:
- A $30 billion housing crisis fund to help local governments prevent foreclosures.
- A 90-day moratorium on foreclosures.
- A rate freeze on subprime mortgages for five years or until banks convert them into affordable loans.
- More power to state housing financing agencies to help families refinance.
- Increased portfolio caps at Fannie Mae and Freddie Mac.
- $25 billion in emergency home heating assistance.
- $5 billion for various energy efficiency measures.
- $10 billion in additional unemployment insurance.
- $40 billion in tax rebates if the economy gets worse.
(Source: HillaryClinton.com, Remarks on the Global Economic Crisis, January 22, 2008; Aggressive Economic Plan, January 11, 2008)
Clinton's Economic Platform: Some major planks of Clinton's economic platform include:
- A $50 billion Strategic Energy Fund to fund an alternative energy agency and provide incentives for alternative energy use.
- Double the size of the enforcement unit in U.S. Trade Representive's Office to increase compliance with trade agreements.
- Expand the Trade Adjustment Assistance agency to help workers displaced by outsourcing.
- Tax relief including child tax credit, Earned Income Tax Credit and marriage penalty relief. Reform the AMT to protect middle class earners.
- Create a balanced budget by developing budget rules that require new expenditures be funded with revenues or cuts.
- Provide health plan tax credits. Expand private plans used by Congress, or Medicare to all.
- Provide a $3,500 tuition tax credit and other education incentives totaling $8 billion per year. It will be funded by repealing the estate tax only for those with assets below $7 million.
- Allow states' Mortgage Revenue Bond programs to address refinancing. Increase cap an additional $2.5 billion.
- Allow Fannie Mae and Freddie Mac to insure jumbo loans.
- Create the American Retirement Account to allow tax-deferred contributions of up to $5,000 per year. The first $1000 contributed into any retirement account will be eligible for dollar-to-dollar tax credits.
Impact on the Economy: Clinton's plan is well-thought out and detailed. With her stated commitment to a balanced budget, it will not increase the budget deficit. The tax credit, health insurance and retirement plans will add dollars to consumers' pockets, strengthening the economy. Many of her proposals increase the power of existing agencies, such as Fannie Mae and state Mortgage Revenue Bond programs, without increasing federal spending.
Her retirement plan will go a long way towards helping with the looming Social Security crisis. Her proposal to fix the Alternative Minimum Tax has been a problem long overdue.
In short, this platform will definitely be a benefit for the U.S. economy.
