Presidential candidates on economic stimulus
Families would receive tax rebates of between $300 and $1,500, depending on their income and whether they have dependent children under the proposal announced Thursday. The rebates would cover low-income families who don't pay federal income taxes, which has been a key demand of Democrats.
But the deal, which would have to be voted on by Congress and signed by President Bush, is missing one of the elements espoused by the top three Democrats running for president - additional money for unemployment benefits.
Presidential candidates are in many cases repackaging their earlier, more long-term-oriented ideas about cutting taxes, changing the tax code and dealing with subprime mortgage foreclosures as their economic stimulus plans.
Here's a summary of some of the economic ideas of the top presidential candidates:
N.Y. Sen. Hillary Rodham Clinton
Her original $70 billion economic plan included a $30 billion fund for states and localities to prevent housing foreclosures, $25 billion for energy assistance for low-income families, $5 billion for energy efficiency measures and $10 billion for unemployment insurance, including for the long-term jobless who have exhausted their benefits. She also wants a 90-day moratorium on subprime foreclosures and an automatic rate freeze for five years on subprime mortgages unless they are converted into conventional mortgages. Subsequently, she proposed $40 billion in tax rebates that would include money for low-income households.
Former N.C. Sen. John Edwards
His $100 billion proposal would invest in clean energy projects, increase federal aid to help states and reform unemployment insurance. He has called for a stop to all foreclosures until it is shown lenders are taking steps to solve the credit crisis and also wants to allow bankruptcy judges to rewrite mortgage rules on family homes. He also has called for raising the minimum wage to $9.50 an hour over four years and then index to automatically rise with average wages.
Ill. Sen. Barack Obama
His $75 billion plan would offer a $500 tax rebate to families and a $250 Social Security supplement to each senior citizen. "If the economy continues to decline in the coming weeks, we should do it again," he has said. He also would put more money into unemployment insurance. States hardest hit by the housing crisis would receive federal money. Obama would add $45 billion more if the economy worsens. He also would stop mortgage fraud and predatory lending with legislation he proposed almost two years ago.
Former N.Y. Mayor Rudy Giuliani
Giuliani said he supports President Bush's proposed stimulus package but favors greater reduction in corporate taxes, from 35 percent to 25 percent, and increasing tax deductions for purchasing equipment. Giuliani hasn't detailed an economic stimulus package but advocates tax cuts, such as lowering the capital gains tax and reducing the number of tax brackets from six to three.
Former Ark. Gov. Mike Huckabee
His five-point plan includes both short-term and long-term fixes. Among those, Huckabee wants a new round of negotiations with subprime lenders to help prevent foreclosures. He wants to preserve and expand the Bush tax cuts and make higher education tuition tax deductible. He also includes a proposal to increase defense spending by $200 billion and improve infrastructure in his economic plan. Ultimately, Huckabee wants to abolish the income tax in favor of a national sales tax.
Ariz. Sen. John McCain
His economic stimulus plan is top-down, emphasizing business investment. McCain would cut the corporate tax rate from 35 percent to 25 percent, give businesses special tax breaks for equipment and technology investments, and establish a permanent tax credit for research and development investments. "At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate," McCain's Web site said.
Former Mass. Gov. Mitt Romney
His $250 billion plan would reduce the lowest income tax bracket from 10 percent to 7.5 percent, eliminate payroll taxes on workers over 65 and eliminate taxes on interest, capital gains and dividends for middle-class taxpayers who make less than $200,000. He would allow businesses to expense the purchase of new equipment, retroactive to Jan. 1, and reduce the corporate tax rate to 20 percent over two years. For homeowners, he would expand Federal Housing Administration loan portfolio limits to allow larger loans to homeowners and reduce the downpayment for a new home. He also would make the Bush tax cuts permanent and reduce tax rates across the board.
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