If businesses have tax burden reduced to 15 percent, we will see an econ renaissance in the U.S. @realDonaldTrump
— Laura Ingraham (@IngrahamAngle) August 8, 2016
GOP presidential nominee Donald Trump outlined his economic vision for America in a speech in Detroit on Monday.
Trump’s choice of Detroit as a backdrop for his address was not accidental. The New York real estate mogul claims that the dramatic decline of the Motor City is a prime example of what happens when the government rejects a policy of “America First”.
“When we abandoned the policy of America First, we started rebuilding other countries instead of our own,” Trump said. “The skyscrapers went up in Beijing, and in many other cities around the world, while the factories and neighborhoods crumbled in Detroit. Our roads and bridges fell into disrepair, yet we found the money to resettle millions of refugees at taxpayer expense.”
During his speech in front of the Detroit Economic Club, Trump outlined a plan to reignite America’s economy through tax reform, the repeal of onerous regulations, and the renegotiation of America’s trade partnerships.
Here’s a breakdown of key aspects of the Trump plan:
– 15% Corporate Tax Rate
Under Donald Trump’s proposed tax plan, no corporation–large or small–would pay more than a 15% tax rate. The United States currently has the highest corporate tax rate in the industrialized world at 35% (which is closer to 40% when state taxes are included.)
“Small businesses will benefit the most from this plan,” Trump said in Detroit. “Hillary Clinton’s plan will require small business to pay as much as three times more in taxes than what I am proposing.
The lower corporate tax rate will also help to end corporate-inversions in which corporations move their businesses overseas to countries with more favorable tax laws.
– Income Tax Reform
Trump’s proposal would reduce the number of income tax brackets and bring rates down to 12%, 25% and 33%. The poorest Americans would pay 0% in income taxes.
“I am proposing an across-the-board income tax reduction, especially for middle-income Americans,” Trump said. “This will lead to millions of new good-paying jobs. The rich will pay their fair share, but no one will pay so much that it destroys jobs, or undermines our ability to compete.”
– End the Death Tax
The so-called “death tax”, also known as an estate tax, is a tax levied on the estates of the recently deceased. Many economists consider this an especially onerous tax, as it’s impact is disproportionately felt by the families of small business owners such as family-owned farms.
Trump said, “American workers have paid taxes their whole lives, and they should not be taxed again at death – it’s just plain wrong. We will repeal it.”
– Renegotiate NAFTA and Stop TPP
Trump has made America’s trade-deals a centerpiece of his campaign, and promises to renegotiate deals like the North American Free Trade Agreement if he is elected president.
“If we don’t get a better deal, we will walk away,” Trump told the audience in Detroit.
He also promises to block the passage of the Trans-Pacific Partnership, which he claims will be a “job killer”.
“The next betrayal will be the Trans-Pacific Partnership. Hillary Clinton’s closest friend, Terry McAuliffe, confirmed what I have said on this from the beginning: if sent to the Oval Office, Hillary Clinton will enact the TPP. Guaranteed. Her donors will make sure of it.
– Repeal Obamacare
Republicans have had their sights on repealing Obamacare since the disastrous healthcare reform law was passed in 2010. Trump promises that repealing Obamacare will be his first act as president.
“One of my first acts as President will be to repeal and replace disastrous Obamacare, saving another 2 million American jobs,” Trump said during Monday’s speech.
– Lift Energy Restrictions
During his Detroit speech, Trump also outlined his plan to unleash the power of American energy production by ending a restrictive regulatory regime that harm both American workers and consumers.
The Obama-Clinton Administration has blocked and destroyed millions of jobs through their anti-energy regulations, while raising the price of electricity for both families and businesses.
As a result of recent Obama EPA actions coal-fired power plants across Michigan have either shut down entirely or undergone expensive conversions. The Obama-Clinton war on coal has cost Michigan over 50,000 jobs. Hillary Clinton says her plan will “put a lot of coal companies and coal miners out of business.”
We will put our coal miners and steel workers back to work. Clinton not only embraces President Obama’s job-killing energy restrictions but wants to expand them, including going after oil and natural gas production that employs some 10 million Americans.
According to the Heritage Foundation, by 2030, the Obama-Clinton energy restrictions will eliminate another half a million manufacturing jobs, reduce economic output by $2.5 trillion dollars, and reduce incomes by $7,000 dollars per person.
A Trump Administration will end this war on the American worker, and unleash an energy revolution that will bring vast new wealth to our country.