“By strengthening our manufacturing sector for the future, we can help create the next generation of good-paying jobs”, Clinton said in a statement. Incentives would be modeled after the New Markets Tax Credit, a federal program that involved a 39 percent credit to promote investment and job-creation in low-income areas.
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Both plans are part of a detailed set of proposals meant to improve the bottom line for the middle class, whose declining fortunes Clinton has made the organizing principle of her second run for the White House.
Clinton’s exit tax is part of a broader plan which includes boosting infrastructure spending by $275 billion and investing in clean energy and research.
Under Clinton’s proposed plan, communities would be able to apply for tax relief after a plant closure or significant layoffs occur, according to an e-mail from the campaign. Manufacturers in the United States in raw materials and industries like steel say that currency manipulation in China puts their businesses at a disadvantage in global markets, and Clinton has said before the Trans-Pacific Partnership trade deal falls short of addressing currency manipulation.
Earlier in December, manufacturing facilities in Minnesota and Midwest reported the worst monthly business conditions in three years. “There’s these really deep problems in our financial system, and the dollar’s relative strength is making it more hard to produce things here in the U.S”. But she does promise to strengthen numerous reforms in the 2010 Dodd-Frank Act, in a bid to further discourage risk-taking, limit proprietary trading, shine a regulatory light on the shadow banking sector, and hold Wall Street executives accountable.
U.S. Democratic presidential candidate and former Secretary of State Hillary Clinton delivers the keynote address at the Brookings Institution Saban Forum at the Willard Hotel in Washington on December 6, 2015.
Sperling, who pointed to various studies that he said suggest manufacturing “punches above its weight in innovation and high wage jobs”, contended that Clinton’s plan would underscore the importance manufacturing plays in the economy, as well as ensure the country has the necessary tools to help communities rebound after companies leave.
“As president, I would not exclusively veto any laws that would weaken monetary reform, however I would additionally struggle for tough new guidelines, stronger enforcement and extra accountability that go nicely past Dodd-Frank”, Clinton wrote. “We can not delay in cracking down on inversions that erode our tax base”.
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A Clinton campaign spokesman referred questions to an MIT economics professor who has written extensively about the financial crisis and apparently agrees with Clinton’s proposals. Regarding corporate inversions, he has recommended lowering corporate taxes as a way to attract companies to keep their profits in the states.
