FACTBOX: Presidential candidates' ideas on economy
(Reuters) - President George W. Bush has proposed a $150 billion plan to help stimulate the ailing economy.
Worries that a recession may be looming have prompted several of the candidates in the U.S. presidential race to unveil plans to give the economy a lift. Here are their ideas:
DEMOCRATIC U.S. SEN. HILLARY CLINTON
The New York Democrat has proposed a $70 billion package to stave off a possible recession, including $40 billion in spending for heating assistance, an extension of unemployment insurance and investments in energy efficiency.
The other $30 billion would go toward helping low-income families hit by the mortgage crisis.
A second phase of the package, which would total an additional $40 billion, would be triggered if the economy failed to respond. That would pay for tax rebates for low- and middle-income workers.
DEMOCRATIC FORMER U.S. SEN. JOHN EDWARDS
The former Democratic senator from North Carolina has proposed a $25 billion job creation plan with the possibility of $75 billion more if there is more evidence the United States is entering a recession.
The plan calls for investing in clean energy infrastructure, increasing federal aid to help states avoid cutting programs that help families through hard times, reforming unemployment insurance and tackling housing crisis.
DEMOCRATIC U.S. SEN. BARACK OBAMA
The Illinois Democrat's $75 billion plan includes an immediate $250 tax cut for workers that would double if the economy worsens.
Older Americans would receive a one-time $250 bonus in their Social Security checks that would also double in a severe downturn. Obama would offer assistance to homeowners facing foreclosure and aid to states hit by reduced tax revenues. He would also extend unemployment insurance for laid-off workers.
REPUBLICAN MITT ROMNEY
The former Massachusetts governor has proposed a stimulus package centered on permanent tax breaks, rather than temporary measures, expected to cost $250 billion.
Romney wants to permanently cut the rate for the lowest income tax bracket to 7.5 percent from 10 percent, retroactive to 2007; eliminate Social Security payroll taxes for workers over 65; and eliminate capital gains and dividend taxes on households earning less than $200,000 a year.
He would also permanently reduce the corporate tax rate to 20 percent from 35 percent over two years and allow businesses to depreciate the value of new equipment purchases faster.
REPUBLICAN U.S. SEN. JOHN MCCAIN
In Charleston, South Carolina on Saturday, the Arizona senator said he would sit down with his economic advisers to discuss the estimated $145 billion stimulus package under discussion in Washington, but he voiced skepticism about it.
He said "throwing money" at a problem has never been a good idea, and he said cutting spending in the federal budget is desperately needed.
"Controlling spending is the first step that has to be taken," McCain said, followed by making tax cuts permanent and cutting the corporate tax rate from 35 percent to 25 percent.
REPUBLICAN RUDY GIULIANI
The former New York mayor has said it is not clear yet if the economy is headed for a recession but he has outlined a multitrillion-dollar tax cut he said would boost growth.
He would slash the corporate tax rate to 25 percent from 35 percent and reduce the capital gains tax to 10 percent from 15 percent. Giuliani also proposed overhauling income tax rates to give taxpayers the option of choosing a simplified tax form with a maximum bracket of 30 percent.
REPUBLICAN MIKE HUCKABEE
The former Arkansas governor has said the "greatest source of short-term stimulus is the Federal Reserve" but that the Fed also must be mindful of inflation.
Huckabee vowed to increase spending on both defense and public infrastructure.
He has promised to "preserve and expand" the Bush tax cuts and touts his "Fair Tax" plan, which would replace the income tax with a national sales tax.
(Reporting by Caren Bohan and Deborah Charles; editing by Bill Trott and Peter Cooney)
