Presidential frontrunner for the Democratic Party, Hillary Clinton on Friday proposed a U.S. corporate tax reform for capital gains taxes, a transparency for stock buybacks and executive compensation changes for a long-term growth.
Clinton has taken a mmuch leftist approach to the economic policy, in comparison with her husband, former Democrat President Bill Clinton, who was more centrist in policy-making. This left position of Hillary Clinton is to gain the progressive Democrat votes, but the careful ceconomic proposal does not curb big Wall Street investors. This coalition gives her the best position in the Democratic filed of Presidential hopefuls for the 2016 Elections.
According to Reuters Clinton in her speech in New York called for a fight against the “quarterly capitalism”. She said “It’s bad for business, it’s bad for wages and it’s bad for our economy . The call was for government and private companies to fight against short-term goals and instead focus on gains on the long-term. She added that the current tax code allows companies to put short-term goals, which she proposes to be changed.
She also said that “there is something wrong when senior executives get rich” at the expense of small businesses and workers.
In respect to stock prices, according to Reuters she said “How do we define shareholder value in the 21st centurt? Is it maximazing immediate returns or delivering long-term growth?”She also argued that buybacks should be changed and instead of an entire quarter without disclosing she pointed to other countries who have daily buybacks and daily regulations to transactions and share price changes to foreign investors, as well as a stop for government subsidies for industries that are already very well on their feet, for example the oil industry.
Bernie Sanders, Vermont Senator and the biggest rival to Clinton for the Democratic nomination for the White House, has called for a federal minimum wage of $15, gaining votes from many progressives. However, Clinton does not exactly agree on the point of raising the federal minimum because, according to Reuters, she said the higher minimum wage would make sense for New York, but it does not make any sense for part of the country where the cost of living is much lower.
Because of adopting this leftist economic policy, Republicans have been criticizing Clinton for the tough financial regulation of Wall Street and have deemed it outdated. According to Reuters, Alex Conant, a spokesman for the Republican Presidential candidate and Senator Marco Rubio said “Hillary Clinton’s tax proposal picks winners and losers and ultimately leaves behind the working class.
Clinton has proposed this reform to encourage long-term economic growth and long-term investing with raising taxes for short-term capital gains for assets that are held less than six years. She is sure that that will grow the economy and stop hit an run activists of taking small value in less time and allow companies to pursue more long-term strategies.