The Candidates'economic Plans

September 11, 1992|By "Putting People First" (Clinton campaign book); "Agenda for American Renewal" (Bush camapign policy paper)/Sun Washington Bureau

BUSH PLAN:

Taxes:

Cut income tax rates by one percent across the board, reduce taxes by 33 percent for businesses that make less than $100,000 a year and cut capital gains tax rates by an unspecified amount if a ceiling is imposed on the growth of federal spending for programs such as Medicare and Medicaid.

Spending cuts:

Save $132 billion over five years by imposing a cap on the growth of federal programs, except for Social Security, and eliminating 246 domestic programs that cost about $5 billion. Downsize the federal government, including a one-third cut in the White House staff if Congress cuts its operating budget by one-third. Five percent pay cut for salaries of federal employees making over $75,000 a year. Cut health care costs by $394 billion over five years through managed care and malpractice reform.

Deficit:

Freeze government spending, except for programs like Social Security and welfare assistance, and allow taxpayers to earmark up to 10 percent of their tax payment for reducing the federal deficit.

Growth:

Double the size of the economy to $10 trillion by early in the next decade through tax incentives to encourage the startup of new companies, education reform and expanded trade, including a new network linking the United States with Latin America and Eastern Europe.

CLINTON PLAN:

Taxes:

Raise $20 billion a year through higher taxes on those earning more than $200,000 a year, offer everyone else a choice of an unspecified tax cut or an unspecified increase in the earned income tax credit, cut taxes for small businesses and collect $10 billion more a year from foreign companies doing business in the United States by closing loopholes and increasing tax enforcement.

Spending cuts:

Reduce health care expenses that drive up cost of federal Medicare and Medicaid programs; trim federal government administrative costs by 3 percent and eliminate 100,000 government jobs by attrition over four years; reduce defense spending and scale back or end unspecified domestic programs.

Deficit:

Reduce by 50 percent over four years, primarily through expanded economic growth and savings from health cost controls.

Growth:

Increase public and private investment by giving tax breaks to companies that expand U.S. operations and by increasing federal spending by $50 billion a year on transportation, communications systems, education and training.

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