Clinton to propose $70 billion stimulus – NY Times

NEW YORK, Jan 11 (Reuters) – Democratic presidential contender Hillary Clinton on Friday will propose a $70 billion emergency spending package and possibly another $40 billion tax rebate to counter what she sees as a coming recession, according to the New York Times.

“I have been looking at the latest unemployment numbers, and I really think it is imperative that we start to move to help people dealing with the housing market and give the country a jolt of confidence in the economy,” the senator from New York told the Times.

Clinton‘s plan would provide $30 billion for an emergency housing crisis fund for states to help low-income families unable to make mortgage payments; $25 billion to help low-income families pay heating bills this winter; $10 billion to extend unemployment insurance for people unable to find jobs; and $5 billion for alternative energy programs, the Times said.

The $40 billion tax rebate would be enacted later if economic conditions worsen.

The plan was the first specific stimulus package to be proposed by a presidential candidate from either party, the Times said.

Clinton‘s campaign had announced she would lay out her plans for jump-starting the U.S. economy in California on Friday at 2:15 p.m. EST/1915 GMT.

Clinton told the newspaper she “absolutely” believed it was possible for Democrats in Congress to work with U.S. President George W. Bush to enact a stimulus package early this year. The U.S. presidential election does not come until November and the new president would take over a year from now.

But Bush has said any stimulus he is considering would most likely focus on tax cuts rather than spending, the Times said.

Clinton‘s emergency spending plan would add to the federal budget deficit and not be offset by tax increases or budget cuts, her campaign told the Times.

A weakening U.S. job market and manufacturing sector downturn last month has raised concerns the economy was near or perhaps already in recession, but U.S. Federal Reserve Chairman Ben Bernanke said on Thursday the Fed saw continued, but slow, growth.

Unemployment rose to 5 percent in data released last Friday. (Reporting by Daniel Trotta)