Donald Trump's Economic Plan Speech August 8, 2016 in Detroit
The 2016 second quarter economic growth rate was an anemic 1.1%, recently revised down from 1.2%. It was the third consecutive period in which the economy advanced at less than a 2 percent annual rate, the weakest in four years.
Trump's economic plan promises to be a positive step toward America's economic revitalization. The goal of his plan is jobs, growth, and opportunity.
Trump also promises to repeal and replace Obamacare with a more affordable, doctor-patient centered, health care system. Obamacare has proven to be financially untenable for many major insurance carriers. Blue Cross, Etna, United Health Care, and Humana have opted out of state-run health insurance exchanges.
National security is another aspect of Trump's plan. Securing the border and creating a more rigorous vetting process is part of his plan to prevent dilution of wages, unfair competition affecting lower income workers, and reducing violent crime by illegal aliens.
Trump's vetting process will be designed to prevent potential terrorists from entering the U.S. as well as people who do not share American values or respect the U.S. Constitution.
Here are some major elements of Trump's economic plan:
- Lowers personal income rates to three brackets, 12%, 25%, and 33%.
- A zero tax rate for the poorest Americans
- A maximum business tax rate of 15%. Currently, income passed through to owners of S corporations and LLC's can be taxed at a marginal tax rate as high as 39.6%. The top marginal tax rate for regular C corporations is currently 39%.
- Drastically reduce business-killing regulations.
- Repeal and replace Obamacare with an affordable, efficient, doctor-patient centered health care system.
- Exploit all forms energy to become energy independent and reduce the cost of energy.
- Renegotiate NAFTA to benefit U.S. workers by bringing manufacturing back to the U.S.
- No to the Trans Pacific Partnership (TPP), expected to be another job-killing idea as NAFTA and Obamacare have proven to be.
- Incentivise repatriation of potentially trillions of dollars parked overseas by U.S. corporations by imposing a low 10% tax. This money could be used to repair bridges, tunnels, roads, and other vital domestic infrastructure as well a create thousands of jobs.
- Eliminate the "Carried Interest" loophole. This tax loophole allows the general partner of money-management firms organized as partnerships to be taxed on partnership net profit at the low capital gains rates, currently 20%, rather than being taxed at ordinary income rates, which are currently as high as 39.6%.
- Return control of education to the states and away from the federal government.