(Reuters) - U.S. presidential candidates have been outlining their plans to revive the sagging U.S. economy and to stem the American housing crisis. Following are some of the recent economic policies outlined by the three main candidates:
DEMOCRATIC NEW YORK SEN. HILLARY CLINTON
* Called for a second stimulus package with a $30 billion fund to put cash into the hands of local governments and nonprofit organizations to buy and resell properties to low-income people or turn them into affordable rental housing units.
* Proposed an emergency working group on foreclosures to study how to establish “broad restructuring” of at-risk mortgages. Suggested the group could be headed by economic leaders like former Federal Reserve Chairmen Alan Greenspan and Paul Volcker and former Treasury Secretary Robert Rubin.
* Plans to introduce legislation to provide legal protection for mortgage servicers who help struggling homeowners to modify their mortgages.
* Supports expansion of Federal Housing Administration’s capacity to guarantee restructured mortgages, in line with legislation proposed by Democrats Rep. Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut. Said government must be ready to be proactive in purchasing, restructuring and reselling “underwater mortgages.”
* Proposed a $12.5 billion funding package to provide job training for displaced workers. It would include $2 billion a year over five years to create universally available job retraining services for the unemployed and $500 million a year for on-the-job training and worker education.
DEMOCRATIC ILLINOIS SEN. BARACK OBAMA
* Called for greater government regulation of the U.S. financial system and proposed a new $30 billion economic stimulus plan to help homeowners.
* Proposed $30 billion plan includes $10 billion foreclosure prevention fund to help people keep their homes. It also includes $10 billion in relief for state and local governments hit hardest by housing crisis.
* Outlined six “core principles for reform” that include: providing Federal Reserve with basic supervisory authority over any financial institution to which it might make credit available; reform of financial institutions’ regulatory requirements; streamlining overlapping and competing financial regulatory agencies; regulating financial institutions for what they do; cracking down on trading activity that crosses line to market manipulation and creating process to identify systemic risks to financial institutions.
* Wants to repeal a provision in bankruptcy law so ordinary families can modify terms of home mortgages.
* Proposed a 10 percent mortgage tax credit for middle-class Americans.
REPUBLICAN ARIZONA SEN. JOHN MCCAIN
* Called for quick separate meetings of mortgage lenders and accountants to hash out solutions to housing crisis.
* Said it is not duty of government to bail out and reward “those who act irresponsibly,” whether they are big banks or small borrowers.
* Believes government assistance to banking system should be based solely on preventing systemic risk that would endanger the entire financial system and economy.
* Said any reforms must focus on improving transparency and accountability in capital markets.
* Supports making permanent the 2001 and 2003 income tax cuts and has proposed cutting the corporate tax rate to 25 percent from 35 percent and allow businesses to immediately write off capital expenses.
Reporting by Deborah Charles in Washington; editing by Mohammad Zargham
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