What Does Fiscal Policy Mean to Trump and Clinton?

photo credit: Danni Fuentes

 

Like a presumptively painful dentist appointment, I've put off discussing fiscal policy as it relates to these two. Its however now come down to end, one day left before we can all stop hearing about polls, campaigns and tweets. Through all the overexposure and bias, at the end of the day all the candidates have are their words. We're taking just the straight talk from them on finance and seeing where they actually stand. 

 

A Clinton Fiscal Policy

100 Days Job Plan: She will " fight to pass a plan" in her first 100 days that will invest money into "infrastructure, manufacturing, research and technology, clean energy and small business." She will also say no to the Trans-Pacific Partnership, and have enough clean energy "to power every home in America within 10 years of her taking office". Sounds like a busy 100 days

Free College: Clinton states she will "make college debt-free" and allow Americans to refinance student loans already out. She does not clarify as to how she will make college debt free. She does have a handy refinancing tool that you can play around with though.

Pay/Wages: Clinton would like to:
-raise the minimum wage
-push for equal pay and paid leave
-regulate and "crack down" on corporate international tax shelters and tax breaks given to companies that operate overseas. 
-Fight for the Buffett Rule, or 30% rate on taxes for individuals who make more than 1MN a year. 
-Close the carried interest loophole and add other surcharges to millionaires and billionaires. 

A Trump Fiscal Policy

First, let me preface this by stating that recently 370 economists (8 Nobel laureates included), penned a letter calling out every single economic lie and and piece of misinformation on Trump's economic platform. On that note, let's begin!

'25MN New Jobs': Titled ' The Trump Economy' (ugh), it proposes "sweeping reforms in tax, trade, energy, and regulatory policies" to create new jobs. 

Regulatory Changes: These regulatory changes are vague at best but he does mention how he would scrap the EPA's Clean Power Plan to "level the playing field for American workers".

Lifting the Clean Power Plan would help oil and coal power to become the unchallenged dominant supply of energy in the US. Trump would like to "unleash an energy revolution" by supporting fracking, offshore drilling, and lifting regulations on coal production. A revolution means change, and I don't see any changes here. 

America-First Trade Policy: To tie in with his views on manufacturing, Trump would like to strike down the Trans-Pacific Partnership, "bring trade cases" against China, and renegotiate/ withdraw from NAFTA if his changes are not made. 

The Penny Plan: All the way at the bottom of his platform Trump adds in about 50 words relating to this plan. The Penny Plan "would reduce non-defense, non-safety net spending by one percent of the previous year's total each year." 

In plain speak, he plans on cutting EVERY SINGLE BUDGET that isn't for defense or safety net spending (public works, welfare and the like) year over year with no end. But yeah, let's not touch the $587BN we spend on defense that is being missused on a regular basis. 

 

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