Sen. Hillary Clinton would hold a moratorium on sub-prime foreclosures for 90 days and freeze mortgage rates for five years, according to CNN.com

With many Americans concerned about sub-prime mortgage problems and the looming threat of a recession, what solutions do the presidential candidates offer?

Sen. John McCain has proposed an economic stimulus plan consisting of tax decreases. He intends to lower corporate income taxes from 35 to 25 percent, according to his Web site. He would like technology and equipment to be tax deductible during a company’s first year of business. A tax credit for 10 percent of research and development is also a part of the plan. He would also like to get rid of the Alternative Minimum Tax and require congress to have a 3/5 majority to increase taxes.

McCain would consider assisting homeowners who have been hurt by sub-prime lenders if the current plan does not succeed. Other economic policies of his include supporting the North American Free Trade Agreement (NAFTA), and maintaining the Bush tax cuts, although he initially opposed them.

Sen. Barack Obama would like to create tax cuts for lower and middle classes families and repeal the Bush tax cuts for those who make over $250,000 per year. He plans to give 150 million working class people tax cuts ranging from $500 per person to $1,000 dollars per family. Obama would spend $10 billion to help struggling homeowners.

He has opposed the Central American Free Trade Agreement (CAFTA), and he wants to implement more labor rights and environmental regulations on NAFTA.

Sen. Hillary Clinton would hold a moratorium on sub-prime foreclosures for 90 days and freeze mortgage rates for five years, according to CNN.com.

Clinton’s economic stimulus plan would supply $25 million to assist with heating bills, $10 billion in insurance for the unemployed, and $30 billion to help families avoid foreclosures on their homes. She would also invest $5 billion in environmentally friendly jobs.

Similar to Obama, Clinton opposed CAFTA and wants to amend NAFTA. She wants to improve labor rights and environmental standards, according to her Web site.

Former Arkansas Gov. Mike Huckabee has arguably the most radical positions on the economy of the top contenders for the presidency. He is a proponent of the “Fair Tax” plan. This proposal would eradicate the Internal Revenue Service (IRS) and all federal taxes; that includes income taxes, payroll taxes and capitol gains taxes. Instead, he would only have a national sales tax.

Huckabee believes the sub-prime mortgage crisis should be worked out between lenders and borrowers. He does not support government intervention in the matter.

He is optimistic about globalization but believes it needs to be coupled with fair trade. Some information was taken from votegopher.com.

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