Donald Trump will give a speech on Monday at the Detroit Economic Club that is expected to include new policy proposals to lower the corporate tax rate and taxes for Americans while advocating for reducing government regulations to help build more U.S. jobs and revitalize the American economy.
Trump hopes to revitalize his own slumping presidential campaign which has lost momentum over the past 2 weeks following Republican and Democratic Conventions.
Last week was a bad week for Trump who refused to endorse Paul Ryan, a young and popular Republican Speaker of the House, and respected Arizona Senator John McCain during their re-election campaigns, resulting in stinging criticism from establishment Republicans and renewed questions among conservatives about whether Trump has the ability to unify the Republican party with less than 100 days before the general presidential election.
On Friday Trump finally endorsed both Ryan and McCain but a string of new election poll numbers show that Trump took a clear hit following the Democratic Convention in late July, including swing states like Michigan and Pennsylvania.
A new IBD/TIPP poll released on Friday shows Democratic presidential nominee Hilary Clinton with a +7 lead over Trump in the general election in November.
An NBC/WSJ poll released on Thursday shows Clinton with a + 9 point advantage and a McClatchy/Marist poll shows Hilary Clinton with an even larger lead, +15 points.
Inflammatory comments from Trump about Dr. Khan, the father of a slain Muslim U.S. military solider, did not go over well with the American public, especially after Trump suggested that Dr. Khan’s wife didn’t give a speech because of Muslim gender norms, a claim that Dr. Khan rebuked.
Trump said during an interview with ABC’s George Stephanopoulos, “If you look at his wife. She was standing there. She had nothing to say. She probably, maybe wasn’t allowed to have anything to say. You tell me” Trump said.
Trump’s Economic Plans
Last week Donald Trump named an economic team that includes hedge fund billionaire John Paulson, founder of investment group Paulson and Co. and others including Steven Moore, Peter Navarro, Andy Beal, Tom Barrack, David Malpass, Dan DiMicco, Harold Hamm, Howard Lorber, Steven Mnuchin, and Steve Feinberg.
Trump is planning to unveil a new economic policy that is expected to lower the U.S. corporate tax rate from 35 percent to 15 percent, renegotiate U.S. trade deals including NAFTA, Trans Pacific Partnership (TPP), and lower regulations on businesses operating in the U.S.
Many U.S. corporations take advantage of corporate tax loopholes and pay tax rates that are far lower than the 35 percent level.
Green energy deductions are expected to be eliminated in Trump’s economic policy.
On Trump’s website he identified 4 fiscal policy goals including 1) tax relief for middle class Americans, 2) simplify the tax code, 3) eliminate corporate inversions, a practice of relocating a corporation’s domicile to a lower tax country such as Ireland, while maintaining its material operations in the U.S., 4) and reducing the federal deficit.
Trump is expected to talk about “making America great again” by creating more U.S. jobs which comes after stock indexes advanced on Friday after a better than expected July non-farm payroll report showed that 255,000 non-farm payroll jobs were created in July while the unemployment level was 4.9 percent, far lower than the 10 percent unemployment peak during the depths of the great recession in 2009.
Trump has previously mocked the government’s method for measuring the unemployment level and claimed the real U.S. unemployment rate is really over 20 percent, a figure that economists widely disputed.
Trump called himself as the “king of debt” during a May 5th CNBC Squawk Box interview and spoke about renegotiating U.S. debt with treasury holders, an approach that quickly came under fire from key economists and the investment community.
Tax Policy Center’s Research Shows Trump’s Tax Proposal Would Cause A $ 9.5 Trillion Reduction Of Federal Revenues
According to research from the non-partisan Tax Policy Center, Trump’s proposed tax policy would lower federal revenues by a staggering $ 9.5 trillion over the first decade before including added interest costs or even measuring the macroeconomic feedback effects.
The Tax Policy Center concluded that Trump’s proposal “would significantly reduce marginal tax rates on individuals and businesses, increase standard deduction amounts to nearly four times current levels, and curtail many tax expenditures.”
There are serious questions about whether Trump’s proposal are even viable.
Although Trump’s tax cutting proposal would improve incentives to work, save, and invest, if it were to be carried out and implemented, it could increase the U.S. national debt by nearly 80 percent of gross national product (GDP) by 2036 unless it includes very large spending cuts, the Tax Policy Center concluded.
Written By: Johnathan Schweitzer
follow me: @SchweitzFinance or like my site on Facebook, Schweitz Finance.
Here’s my latest You Tube video commenting about Trump’s Tax Plans: