Republican presidential nominee Donald Trump will deliver a speech from the Economic Club of New York providing more clarity on his economic policies. Getting America working again thanks to tax cuts (and major debt) is the key message and we note that Trump is also expected to take questions following his remarks.
- *TRUMP CAMPAIGN SAYS POLICY WOULD CREATE 25M JOBS IN DECADE
- *TRUMP CAMP SAYS ITS ECONOMISTS ESTIMATE AT LEAST 3.5% GROWTH/YR
- *TRUMP CAMP: MILLIONS OF LOW-INCOME WILL COME OFF TAX ROLLS
- *TRUMP CAMP: CHILDCARE TAX DEDUCTION APPLIES TO KIDS UNDER 14
Trump’s economic plan includes a variety of tax cuts, such as a reduction of the top corporate income tax from 35 percent to 15 percent. He also wants to cut the top tax rate for individuals from 39.6 percent to 33 percent. Under Trump’s plan, income tax brackets would be reduced from seven to three, according to the campaign’s website.
The new tax rates would be 33 percent, 25 percent and 12 percent. The top tax bracket starts at $200,000 a year for individuals and $400,000 a year for married couples.
Many questions have been raised about how Trump would pay for his proposed cuts. Analysts have concluded that Trump’s plan would cost the U.S. treasury about $3 trillion over the next ten years, according to Bloomberg.
In contrast, Democratic nominee Hillary Clinton has proposed increasing taxes on the rich, including a 4 percent surcharge on incomes higher than $4 million per year. She has also proposed raising the minimum wage from $7.25 an hour to $12 an hour.
Oxford Economics found that if fully implemented, Trump’s economic, tax and immigration policies would cost 4 million U.S. jobs, weigh down global growth and U.S. consumer spending, and could spark a trade war with other nations.
“Combining these policies together, the impact could be significantly negative for the U.S. economy,” says Jamie Thompson, head of macro scenarios at Oxford Economics.
When asked about Oxford’s analysis, billionaire fund manager Tom Barrack, one of Trump’s economic advisers, dismissed the report in one sentence…
“One thing we know about economists is that they never get it right,”