NEW YORK Donald Trump outlined his vision for managing the nations economy as president Thursday, promising that his plans to lower taxes by $4.4 trillion over a decade and cut regulations would lead to booming growth, create millions of jobs and even cut into the nations budget deficit.
Advertisement
Math questions aside, Trump’s latest economic proposal does lay out fairly clearly where he plans on generating growth and cutting spending.
Trump’s projections are based on rosy forecasts of the job gains that would result from tax cuts and reduced regulation.
Donald Trump adjusted his own economic plan’s growth projections on the fly Thursday afternoon, suggesting that 4 percent annual growth was possible, just minutes after saying his plan would average 3.5 percent growth.
The Republican nominee attacked Democratic nominee Hillary Clinton, and said that her economic plan, “offers only more taxing, regulating, more spending and more wealth redistribution, a future of slow growth, declining incomes, and dwindling prosperity”. “It’s going to be very hard to achieve 3.5 percent growth on a sustained basis” for any presidential candidate, Gennadiy Goldberg, a strategist at TD Securities in NY told Bloomberg, pointing to challenges both at home and overseas.
“Everything that is broken today can be fixed, and every failure can be turned into a truly great success”, Trump said during a prepared speech to The Economic Club of NY.
Earlier this week, Oxford Economics predicted that the usa economy may actually shrink by a total of $1trn after one term of a Trump presidency, taking into account his proposed tax regulations and the promise to rip up trade deals with emerging nations. Republicans, including Trump, favor this model, but critics say it hides the cost of tax cuts. More than two-thirds of all pass-through income flows to the top 1 percent of tax filers, according to the Center for Budget and Policy Priorities, a left-leaning research group.
The GOP nominee also said he would ensure every trade agreement adds to GDP growth; in the past, he has promised to tear many of them up.
Mr. Trump’s plan also appears to include an enormous change from his prior plan on taxing businesses. If growth fails to meet those rosy targets, the result would be trillions of dollars in additional debt.
Under his new plan, Trump would increase today’s standard deduction to $15,000 for individuals and $30,000 for married couples. The top individual tax rate is 39.6 percent – meaning that the original proposal would have amounted to a tax cut for many.
A review by the conservative Tax Foundation of a similar plan put forward by House Republicans found wealthy taxpayers get the biggest break from reduced rates.
But Trump faced intense scrutiny over his plans ahead of Thursday’s speech. He added that he would instruct his trade representative to bring forth trade cases against China.
Advertisement
However, some experts are finding that Trump’s economic policies could end up costing the United States quite a bit, actually.
