FACTBOX: Recommendations for fiscal stimulus

Thu Jan 10, 2008 6:16pm EST
 
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WASHINGTON (Reuters) - The White House is considering a number of stimulus options that may be needed to bolster a flagging U.S. economy, but says it is "premature" to discuss details.

There are no shortage of recommendations from both conservative and liberal camps. Following is a selection of suggested actions:

SEN. HILLARY CLINTON, Democratic U.S. presidential candidate:

-- Create $5 billion community support fund to help prevent mortgage foreclosures.

-- Provide $2 billion in emergency home heating and home weatherization funds for cold weather states.

-- Enact 90-day subprime foreclosure moratorium on owner-occupied homes, freeze subprime mortgage rates for up to five years.

SEN. BARACK OBAMA, Democratic U.S. presidential candidate:

--Tax credit of up to $500 per person, $1,000 per family to offset payroll taxes.

-- Says plan would eliminate payroll taxes for some 10 million people, ease short-term pressure on household budgets and lift consumer spending.

MARTIN FELDSTEIN, president, National Bureau of Economic Research and White House economic adviser under President Ronald Reagan:

-- Small tax cut immediately as a "down payment" against a recession.

-- Pass legislation to provide a more extensive stimulus that would be triggered if the economy "softens substantially".

-- Knowledge that additional stimulus lies in reserve would help underpin investor confidence and encourage business investment.

ROBERT RUBIN, executive chairman, Citigroup Inc., former U.S. Treasury Secretary.

-- Move "proactively" with stimulus package "in the area of $100 billion" targeted at families most vulnerable to downturn.

-- Possible options include tax rebates, increased unemployment benefits and food stamps, aid to states.  Continued...

 

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