Posts from — May 2008

The following is the second in  a series of three exploring the economic plans of the major Presidential candidates.  This article examines Sen. Hillary Clinton’s approach to fiscal management and tax policy.

 The high lights:

• The Lending Crisis 
  • create a $30 billion fund to assist states and municipalities in reducing foreclosures
  • declare a 90 day moratorium on subprime foreclosures (on owner occupied properties)
  • freeze interest rate increases on adjustable rate mortgages for five years 
• The Economy
  • Provide a $650 emergency home-heating assistance payments to the 37 million families she says are in need
  • Foster growth in ”green employment” including a programs to weatherize homes, retrofit public buildings and train workers in these new markets.
  • Invest $10 billion in critical infrastructure creating jobs and increasing American competetiveness
  • Provide $20 billion in “green bonds” to allow US auto companies to retool older factories
  • Provide a $1,000 tax credit to “match” contributions to a portable (401K) 
  • Provide a $3,500 college tax credit
• Employment
  • Employer to provide a mandatory seven paid sick days
  • Extend and broaden unemployment coverage
  • Increase the minimum wage to $9.50 by 2011
  • Create a $50 billion strategic energy fund and create 5 million new “green collar” jobs
• Health Care
  • Mandatory coverage through payroll contributions if not insured by an employer
  • Prevent insurance companies from rejecting applicants due to preexisting conditions.
• Corporate Tax Policy
  • Reduce tax breaks to business by $55 billion per year.
  • End tax breaks for companies “off-shoring” jobs.
  • Allow Medicare to negotiate with drug companies saving $30 billion a year
  • Remove tax credits from oil companies to support the $50 billion energy fund
  • End no bid contracting and cut 500,000 government contractors
• Credit / Lending Policy
  • Cap interest rates on credit cards at 30%
  • More closely regulate mortgage lenders to prevent a reprise of the subprime loan crisis
• Family Oriented Policy
  • Expand the Family and Medical Leave act to cover employers with a few as 25 employees
  • Commit $1 billion per year to fund state level parental leave and at-home family care programs

How she will pay for it… 

In short, Sen. Clinton will rase taxes on everyone:
• the lowest wage earners by 50% (from 10% to 15%)
• the top wage earners by 13% (from 35% to 39.6%)
• lower the floor on married people to $0.00
• halve the child care credit
• leave the AMT where it is
• the self-employed by 44% (from 37.9% to 54.9%) 

Very strange for someone who believes “We have to change the tax system, and we’ve got to get back to having those with the most contribute to this country.” Under Sen. Clinton’s proposals, those making the least are facing the greatest percentage increase in their tax burden.

The devil is in the details.  You only need to look.