Campaign for the US Presidential Election always attracts interest from across the globe. During the political conventions, the presidential hopefuls present the plans they want to execute in future. These plans cover a wide range of areas from foreign policy to internal security and from immigration to economy. On November 08, Donald Trump and Hillary Clinton will be vying for the President of the United States. While making public speeches during their country-wide campaigns, both candidates presented their views on how they, once elected, will work for the better future of the United States. Their respective visions for the US economy are, unsurprisingly, starkly different. This write-up is aimed at highlighting their plans on boosting US economy.
Cleaning up financial system of the United States is going to be a thankless task for whoever is elected as the President. And things like unemployment rates, inflation, hunger, will be tough to tackle. Both of them will not be able to pick up the pieces fast enough when the financial system falls apart.
The entire Clinton recovery agenda is to spend $1 trillion more on government public works programmes, free day care and college education, and expanded entitlements. She would raise investment and personal income tax rates to finance all of this.
Meanwhile the Donald Trump economic plan is based on the idea that easing the burden of taxes and regulations on businesses and workers will kick-start faster growth and bring high-paying manufacturing jobs back to America.
In all, a Clinton presidency would most likely slow economic growth, while a Trump presidency would be a wild card, according to Scott Sumner, professor emeritus of economics at Massachusetts-based Bentley University. In a summary prepared on behalf of RCW Financial, Sumner writes that Hillary Clinton’s tax plan contains a number of tax boosts on the rich, including increases to the top federal income tax rate, top capital gain rate and the estate tax. “These tax changes would hurt investments such as stocks, real estate and high-end collectibles,” Sumner says. Her tax changes are primarily aimed at those who save, rather than spend a lot. Thus the effective tax rates paid by thrifty billionaires, who put most of their money into new investments, or bequests to their heirs, will be higher than the tax on billionaires who spend their fortune on lavish homes, yachts, and parties. Trump’s plan, however, includes major tax cuts for low-income households as well as the rich. But he hasn’t proposed spending cuts in order to pay for the tax relief; in fact, he is calling for spending boosts. “There is a name for this sort of policy — Greece,” Sumner says. He also believes that if Trump’s proposals on trade and immigration are enacted, they could lead to a recession.