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Food for Thought That Will Help Voters Sort Out Fact from Fiction

10/18/2015  articles

There are many voters both inside and outside of politics who refuse to believe what they often see with their own eyes and hear with their own ears.

How Donors Decide Which Presidential Candidates to Fund

Burn Rate

A headline in The Wall Street Journal, Oct. 16 (Rebecca Ballhaus), “Candidates Run through Cash Quickly.” This is called the burn rate. Donors look at this factor to help them decide how the presidential candidates are managing their money because donors care how their money is being spent.

Viability

Donors fund candidates who can prove they will be viable deep into the primary fight. These candidates have a fighting chance to win their party’s nomination. How candidates rate in the debates displays a level of viability. Candidates who have enough cash to continue running through the primaries into the nomination cycle is another level.

Poll Numbers impact viability. This includes current polls reflecting national, swing states, and key states with a large number of delegates.

The GOP Donors

To date, Jeb Bush raised $25 million, spent $14.5 million which equals a high burn rate of 59%. He has $10.3 million left. Marco Rubio has $11 million in the bank which is 39%, a low burn rate considering his total take. Carly Fiorina has a low burn rate of 35%. Because outside groups spent heavily on their behalf, both Rubio and Fiorina spent less of their money which decreased their rates.

Sen. Ted Cruz, R-Texas, has $13.5 million with a burn rate of 49%. Dr. Ben Carson, has $11.3 million, cash-on-hand, the most of all GOP candidates, with a burn rate of 65%. He spent most of his money on fund raising.

Donald Trump, the Republican front runner, raised $5.8 million of which $3.8 million was from outside sources. A large part of his campaign was self-funded. His burn rate was 96%.

Sen. Rand Paul, R-Kentucky, has less than $2 million and Sen. Chris Christy, R-N.J. has little more than $1 million both of which are dangerously low.

Gov. Scott Walker, R-Wisconsin, and former Gov. Rick Perry, R-Texas, have already withdrawn from the campaign.

Democratic Donors

Some important democratic donors are on the fence waiting for Vice President, Joe Biden, to decide if he will run.

To date, Hillary Clinton raised $75 million, spent $44.5 million with a burn rate of 59%. Sen. Bernie Sanders, D-Vermont, raised $40 million with a burn rate of 36%.

Taxes

Gov. John Kasich, R- Ohio wants to balance the budget and control the debt. His Tax Plan would reduce top individual income-tax rate to 28% from 39.6%. The Earned Income Tax Credit would provide relief for lower-income people. While in Congress during the 1990s he was Chairman of the House Budget Committee that produced the last balanced budget. He would eliminate the estate tax and drop the capital gains tax from 35% to 25%.

Kasich would transfer more power from the federal government to the states. This includes transferring most gasoline-tax revenue to use for building highways and other infrastructure needs. He wants to keep Social Security solvent.

It has been rumored that Donald Trump would like to select Kasich to serve as his Vice President, an excellent pick. He has the knowledge and Ohio is a swing state.

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