Republican presidential candidate Donald Trump proposed a bold economic plan on Thursday, promising 25 million new jobs and an annual average of 3.5 percent economic growth.
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Donald Trump calls his plan “the most pro-growth, pro-jobs, pro-family plan put forth perhaps in the history of our country”.
“Trump is certainly on solid ground when he claims regulatory reform and tax cuts can serve as major engines of economic growth”, Tonalson said. Last year Trump proposed he could hit 6 percent growth.
He called for an annual growth rate of 4%, a rate which hasn’t been seen since the Bill Clinton presidency in the 1990s.
To help offset the cost of the tax cuts, he said Thursday that his administration would reduce nondefense, nonsafety net spending by 1 percent of each previous year’s total. His proposal would shave 1 percent off the government’s discretionary, nondefense spending each year.
Although the cost of Trump’s tax plan remains unclear, it promises no cuts to Social Security, Medicare and Medicaid spending or to defense.
In comparison, Clinton’s agenda, which includes tax increases to pay for federal programs, has been estimated to increase the debt by $250 billion over ten years, according to an analysis by the Committee for a Responsible Federal Budget. Like his jobs target, the pledge of deficit neutrality is based on aggressive projections about the resulting economic growth.
“Right now, 92 million Americans are on the sidelines, outside the workforce, and not part of our economy”, Trump said.
Basically, Trump keeps changing his answer about why he won’t release his tax return and his son’s new excuse is that the people would read too much into them and have a lot of questions.
Trump also wants to do away with the “death tax” – which Clinton wants to raise from 40 to 45 percent (while at the same time lowering its effective threshold from $5.45 million to $3.5 million for individuals and $10.9 million to $7 million for couples). The fact sheet released by the campaign did not say exactly what levels of income would be taxed at each rate, but said the cutoffs would largely match a proposal by House Republicans. “The intent of the policy is whether you’re a big business or a small business, you’re going to have the benefit of this”. If Trump sets a lower corporate tax rate, “They just traded one loophole for another here”. Trump’s plan seems impossible without an economic miracle.
On trade, Trump promised that there would be no Trans Pacific Partnership (TPP), that he would renegotiate the North American Free Trade Agreement NAFTA, and that China would face consequences for currency manipulation.
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Before a largely friendly audience of business leaders, Trump also offered a harsh critique of government control of businesses.
