Each of us must evaluate his plan independently as not all of
us will be affected in the same way.
Donald Trump's speech before Economic Club of New York detailed
his economic plan to strengthen our economy and create jobs.
Trump's main objective is to restore our economic growth to
four percent, double what it current is, believing this will
be the catalyst that will return our country to the world's
economic power.
His plan is to create "real" stimulus by giving the American
people the responsibility not Washington bureaucrats who have
little to lose if it failed as we have seen since 2008.
As a businessman Trump knows the American people have "skin
in the game", if they don't produce it affects them directly.
Putting the onus on individuals and businesses means they
must be 'productive' something lost on most politicians.
Cycles of peace time productivity occurred after our two
world wars, beginning in 1918 and 1946, without government
creating stimulus!
Today, the American people cannot do it along, it needs
government, but on Trump's terms, simply removing hurdles
and then getting out of the way.
Government's "job" which Trump details is to eliminate
thousands of regulations which have hampered our economy
and drove up the cost of everything from food to housing
and everything in between.
Trump's team will seek advice from industry to determine
which regulations have caused more harm than good.
Did you know regulations add an avg. of $85,000 to new home.
The needed 'stimulus' is simply not taking as much from
taxpayers, leaving more money in the hands of the American
people where it can go to work immediately, not depend on
government's timetable.
This is why the most dramatic change in IRS codes in decades
is part of the plan, keeping a trillion in the pockets of
the American people, not sent to Washington.
Left in our hands means the money will circulate throughout
the country, and with each 'stop', help businesses and
extract taxes that will increase both state and federal
revenue.
Its not "trickle down" its better.
Revenue growth will come almost immediately as there will
be a demand for labor as businesses invest with the money
they will not have to send to Washington.
will be able to hire and by allowing us
to become wealthier, which in turn will send more money
to Washington even though tax rates would be lower.
Trump understands real economic growth can only come from
not one that has government deciding how to spend our tax money
but businesses and individuals.
Here are key points of the economic plan Trump proposed.
He began by stating 92 million Americans are on the sidelines,
outside the workforce, and not part of our economy, calling
it a silent nation of jobless Americans.
He mentioned Flint, MI as an example, that in the 1970s had
80,000 workers building cars in the city, today has 8,000.
Trump offered his plan to keep jobs in our country giving
business tax relief here rather than overseas. He promotes
it as a new policy of Americanism.
Returning to a theme of Ronald Reagan,Trump says lowering
taxes, removing destructive regulations, unleashing the
vast treasure of American energy, and negotiate trade deals
will energize the our economy.
Trump's economic team believe these steps will make the
US the world’s great magnet for innovation and job creation.
America will once again be the greatest place in the world
to invest, hire, grow and to create new jobs, new technologies,
and entire new industries.
Trump states his plan will establish a national goal of reaching
4% economic growth rather than the 2% annual average which has
crippled the American families and businesses. He projects his
plan economic team estimates that will average 3.5% growth and
create a total of 25 million new jobs.
He also says it will be deficit neutral and at 4% growth, reduce
the deficit, accomplished through a complete overhaul of our tax,
regulatory, energy and trade policies, something which cannot be
done continuing policies that currently grew the economy only
1.1 % last quarter, translating to millions of lost jobs.
To compare the last 7 years, the economy grew only 2.1%, the
slowest period in seventy years. Had the economy grown under
Obama at same rate as Reagan, it would have meant 10 million
more jobs.
Trump's tax plan will simplify the code; reduce number of brackets
from 7 to 3, at 12%, 25% and 35% and streamline deductions. The
new code will concentrated on the low and middle income taxpayers
who will receive the biggest benefit.
Also, the business tax rate will be reduced to 15% from 35% rate,
a 40% reduction that will generate an explosion of new business
and new jobs will be created.
US based manufacturers will also be allowed to fully expense the
cost of new plants and equipment.
The "repatriation" of offshore business wealth will be achieved
with a 10% tax rate. With an estimated $2-5 trillion overseas this
would bring in $200-500 billion in revenue and allow business
to use the $1.8 trillion for investment in the US.
Disastrous regulations unilaterally imposed by our out-of-control
bureaucracy will be eliminated. In 2015 alone, federal agencies
issued over 3,300 final rules and regulations, up from 2,400 the
prior year. Every year, over regulation costs our economy $2 trillion
dollars a year and reduces household wealth by almost $15,000 dollars.
There will be moratorium on new federal regulations not compelled by
Congress or public safety. 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 and has shut
down most, if not all, coal-powered electricity plans in America whose
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.
Lifting restrictions on all sources of American energy production will
annually increase GDP by more than $100 billion, add over 500,000 new
jobs and increase wages by more than $30 billion over the next 7 years.
This explosion will also increase federal, state, and local tax revenues
by almost $6 trillion over 4 decades and increase total economic activity
by more than $20 trillion over the next 40 years.
In addition, the permitting process for all energy infrastructure projects,
including the billions of dollars in projects currently held up will be
streamlined, creating countless more jobs in the process.
Finally, comes trade – the foundation for everything America’s annual trade
deficit with the world is now nearly $800 a billion a year – an enormous
drag on growth.
Our manufacturing base has crumbled, communities have been hollowed out,
wages have declined, and households are making less today than they were
in the year 2000.
This includes the following steps:
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.
We will renegotiate NAFTA into a deal that will either be good for us or will be terminated until a brand new and productive deal can be signed.
We are also going to keep America out of the Trans-Pacific Partnership.
The Treasury Secretary will label China a currency manipulator, and to apply tariffs to any country that devalues its currency to gain an unfair advantage over the United States.
The U.S. Trade Representative to bring trade cases against China whose unfair subsidy behavior is prohibited by the terms of its entrance to the WTO, and I intend to enforce those rules which will stop China's illegal activities, including its theft of American trade secrets and intellectual property.
Just the single action of enforcing intellectual property rules alone would add millions of new American jobs. According to the U.S. International Trade Commission, improved protection of America’s intellectual property in China would add 2 million jobs a year to the United States every single year.
We are proposing a $4.4 trillion tax cut that will score as $2.6 trillion under a dynamic growth model, which is how taxes should be scored.
This growth-induced savings from trade, energy and regulation reform will shave $1.8 trillion off of the remaining cost and leave around $800 billion dollars which will be shaved by cutting 1% of every non defense or entitlement federal dollar.
This money can all be saved through simple, common sense reforms. If we save just one penny of each federal dollar spent on non-defense, and non-entitlement programs, we can save almost $1 trillion over the next decade – again this is spending that does not touch defense, and that does not touch entitlements.
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