Two weeks ago, presidential candidate Hillary Clinton spoke to an audience in Warren, Michigan laying out her plans for the economy should she become president. Of course, this was before NCPA released a new study on Clinton’s tax plan, which is now available. In her speech, she asked four questions, and based on our analysis of her tax and economic plan, I will be glad to answer them:
“First, which candidate has a real plan to create good-paying jobs?”
Evidently, not Secretary Clinton. Her plan for taxing the rich looks like a populist’s dream on paper, but in 2017 alone, 207,000 private sector jobs would be lost compared to the Congressional Budget Office’s baseline estimate. Of course, she would create 49,000 government jobs to make up for the incredible shrinking private sector. In 2026, the cost for government jobs would be even greater — one government job would cost five private sector jobs.
“Second, who will restore fairness to our economy and ensure that those at the top pay their fair share of taxes?”
Um…not Hillary. Her effort to restore fairness to the economy will mean hiking capital gains taxes for high-income earners, imposing a 30 percent effective tax rate on households earning $1 million or more (the “Buffet rule”) and a 4 percent surcharge on multi-millionaires. Oddly enough, however, the tax burden would increase for almost all households, including the bottom 10 percent of earners, (a study on the distributional effects of Hillary’s tax plan is forthcoming). Undoubtedly, the rich would pay more, but it is unclear why Hillary would design a plan that also punishes the poor.
“Third, who will really go to bat for working families?”
Seriously? Again, not Hillary if she carries out her tax plan. For one thing, in order for her to go to bat for working families, the families would have to be working. Nevertheless, assuming that her plan miraculously doesn’t kill thousands of private sector jobs annually, it will still be a stretch for this plan to work for the middle class. Business investment will fall $19 billion in 2017 alone compared to the CBO estimates, and without business investment, there is no job growth for the middle class.
“And fourth, who can bring people together to deliver results that will make a difference in your lives?”
Ugh – this is scary. Our analysis does not address who would deliver results, but Hillary’s tax plan mirrors misguided Keynesian practices that have put the economy on a snail’s pace growth path for the past eight years. Suffice it to say she will surround herself with bureaucrats ready to hand out “shovel-ready” jobs at taxpayers’ expense.