Former National Economic Council Director Gene Sperling, who has served both Presidents Clinton and Obama, joined Hillary Clinton’s National Press Secretary Brian Fallon on a conference call Tuesday with reporters to talk about the former Secretary of State’s plan to revitalize U.S. manufacturing should she be elected president next year.
The plan features a “Manufacturing Renaissance Tax Credit” [MRTC] that would be a new driver for investments in communities that are at risk of a downward spiral following factory closures that result in job losses, Clinton pre-call press said. The plan would double funding for the Manufacturing Extension Partnership, a nationwide, public-private initiative that provides support to help small and mid-sized American manufacturers compete. The plan would impose strong domestic sourcing requirements, known as “Buy American” provisions, that prioritize materials that are “Made in the USA.”
Speaking from Clinton campaign headquarters in Brooklyn, New York, Mr. Fallon, who previously worked as a top spokesman at the Department of Justice and for Sen. Chuck Schumer (D-N.Y.), offered an overview of the plan, which makes Mrs. Clinton’s top priority to raise incomes for middle class households. Commenting on the nation’s recovery from the Great Recession, Hillary Clinton, who appears on a path to secure the Democratic Party’s nomination for president next year, said America is “standing but not running” yet.
Mr. Fallon reminded reporters on the call that the campaign issued a proposal for beefing up the nation’s infrastructure last week, which is projected to have a $500 billion impact. “This week we’re pivoting to manufacturing,” he said, forecasting tomorrow’s news will be about Mrs. Clinton’s plan to crack down on so-called “corporate inversions.” Corporate citizens should be paying their fair share, he said.
The plan introduced today is merely the latest element in Hillary Clinton’s jobs’ agenda, which builds on last week’s announcement of a five-year, $275 billion proposal to invest in America’s infrastructure.
The MRTC, Sperling said, is one plank among others that will end the era of using inversions and foreign mergers to avoid corporations paying their fair share of taxes. Location matters, Sperling said, noting that communities need new tools to keep manufacturing facilities from eroding. Manufacturing creates larger innovation opportunity benefits for the economy as a whole, he said, noting that manufacturing now represents 12 percent of Gross Domestic Product. Eroding supply chains are a key focus on the proposal, Sperling said.
Small business makes up almost half the nation’s 12 million manufacturing jobs, but they could support another 17 million jobs, he estimated. New tools are needed to revitalize a downward spiral, he said of Clinton’s priorities, which during her two terms representing the State of New York in the U.S. Senate included a crack down on trade abuses.
Including in the plan would be three tools: 1) a 40 percent tax credit over 7 years to investors; 2) zero capital gains tax only for cases that are true long term investment of more than five years; 3) a special incentive to revitalize specific facilities through repurposing it by retooling supply chains before it’s too late with a new product or strategy.
“Not paying taxes that are owed is not good,” Mr. Sperling said. When asked what it would cost, he said “a few billion” a year, promising more details are forthcoming soon. Leading other Democrats running for president and generally seen as being able to defeat any of the Republicans running to take the White House next year, Gene Sperling said Clinton wants “wants to see pro jobs tax reform…shutting down loopholes and expenditures to avoid tax avoidance.”
“She’s not going to wait,” Sperling said of Mrs. Clinton’s agenda. Fallon, Clinton campaign spokesman, said Hillary will be speaking about it in New Hampshire today, and will talk about tax inversions tomorrow in Iowa.