NEW JOBS: Fact Sheet - 8/27/92 August 27, 1992 THE PRESIDENT'S PLAN TO CREATE JOBS THE PRESIDENT'S GROWTH PLAN WOULD CREATE AT LEAST 500,000 JOBS THIS YEAR. o The President's plan to create jobs: Had the President's growth package been passed by the Congress, it would have created 500,000 jobs this year alone. The President continues to fight for job training growth measures such as: a cut in the capital gains tax, a $5,000 tax credit for first time homebuyers, creation of flexible IRAs, and a new Investment Tax Allowance. -- The President's $5,000 homebuyers tax credit would create 272,500 jobs, primarily in the now-distressed construction and manufacturing industries, and generate an additional 125,000 housing starts. o Spurring Investment and Creating New Jobs: By 1996, a capital gains tax reduction would create 282,000 jobs, and establishment of flexible IRA accounts would create 61,000 jobs, according to estimates of job creation by growth proposals similar to the President's. o Opening Foreign Markets to American Goods: President Bush has taken an active and direct role in opening foreign markets and reducing subsidies and other barriers to trade. -- NAFTA: The President negotiated and signed a North American Free Trade Agreement (NAFTA) to create new American jobs. Exports to Mexico already support over 600,000 U.S. jobs. The Institute for International Economics projects that with a NAFTA, over one million U.S. jobs could be tied to exports to Mexico by 1995, and that increased exports due to a NAFTA will have created 175,000 net new jobs. -- Even the homestate of NAFTA's leading critic, Congressman Gephardt, will benefit from the agreement. Almost one-third of Missouri's 170,000 export-related jobs depend on exports to Canada and Mexico. The jobs created by a NAFTA will pay good wages since export-related jobs pay 17% more than the average U.S. job. o Clinton's economic plan will lose 2.6 million jobs, 1.7 million of which will come from his rash defense cuts and burdensome "play-or- pay" health plan. While he calls his $150 billion tax increase an "investment," one million defense workers and employees from 800,000 small businesses will call it unemployment. -- It is unfortunate that automotive workers are being displaced while their factories are retooled. But, it would be far more tragic that under a Clinton-Gore Administration, radical increases in automotive efficiency standards would cost 300,000 automobile and related workers their jobs -- permanently.