Donald Trump today unveiled his economic policies at the NY Economic Club. The over-arching goals are 4% growth, 25 million new jobs, removal of unnecessary regulations, simplified tax code, energy independence, and improved trade policies.
Trump’s economic team said a 3.5% growth would create 25 million jobs over the next 10 years, and 4% growth would reduce the deficit.
The Trump tax plan would reduce the number of brackets from seven to three at 12%, 25%, and 33%, with low-income wage earners paying no tax at all. “Because we have strongly capped deductions for the wealthy and closed special interest loopholes, the tax relief will be concentrated on the working and middle class taxpayer.”
Included in the tax plan are the child care policy proposals Doanld and Ivanka Trump worked on. These include the ability to deduct child and elder care expenses, the creation of Dependent Care Savings Accounts with matching contribution for low-income savers, increased Earned Income Tax Credit, and reduction of corporate tax from 35% to 15%.
U.S.-based manufacturers would be allowed “to fully expense the cost of new plants and equipment.”
Money kept overseas could be returned here and taxed at 10%.
Trump has proposed a moratorium on new federal regulations not compelled by Congress or public safety. He promised to eliminate unnecessary, job-killing regulations from the books.
“This includes eliminating some of our most intrusive regulations, like the Waters of The U.S. Rule. It also means scrapping the EPA’s so-called Clean Power Plan which the government itself estimates will cost $7.2 billion a year. This Obama-Clinton directive will shut down most, if not all, coal-powered electricity plans in America.”
The core Trump plan is to “lift restrictions on all sources of American energy production.” Citing, the the Institute for American Energy Resources, Trump said his plan will:
- increase GDP by more than $100 billion annually
- add over 500,000 new jobs annually
- increase annual wages by more than $30 billion over the next 7 years
- increase federal, state, and local tax revenues by almost $6 trillion over 4 decades
- increase total economic activity by more than $20 trillion over the next 40 years.
Trump said since China joined the World Trade Organization, our growth rate dropped from 3.5% to 2%. His trade plans, specifically are:
- direct the Secretary of Commerce to identify every violation of trade agreements a foreign country is currently using to harm our workers. I will use every tool under American and international law to end these abuses, and I will use our greatest business leaders and finest negotiators.
- Re-negotiate NAFTA, or scrap it and start fresh.
- Keep America out of the Trans-Pacific Partnership (TPP).
- Label China a currency manipulator, and apply tariffs to any country that devalues its currency to gain an unfair advantage over the United States.
- Instruct the U.S. Trade Representative to bring trade cases against China.
- Enforce WTO rules against unfair subsidies.
- Apply countervailing duties on Chinese products until they stop illegal activities, including its theft of American trade secrets and intellectual property.
Trump said he is proposing a $4.4 trillion tax cut, which includes the child care plan. “Our economic team has further modeled that the growth-induced savings from trade, energy and regulation reform will shave at least another $1.8 trillion off of the remaining cost.”
He estimated the remaining $800 million can be saved through common-sense cuts to non-defense, non-entitlement spending.
Trump called his economic policies “the most pro-growth, pro-jobs, pro-family plan put forth perhaps in the history of our country.”
The Trump campaign posted a complete transcript of today’s speech as a press release. Elements of the policies are contained in prior position papers at the site.