- Spencer Platt/Getty Images
Donald Trump on Thursday shared his economic vision with supporters gathered at the Waldorf Astoria hotel in Manhattan, promising trillions in tax cuts, energy reform, a crackdown on trade, and a reduction in the number of tax brackets.
Trump, the Republican presidential nominee, estimated his plan would create 25 million in new jobs, and that the massive tax cut would be offset by gross domestic product growth of at least 3.5%, on average, each year for the next decade.
“This is the most pro-growth, pro-jobs, pro-family plan put forth perhaps in the history of our country,” Trump said, according to the prepared remarks.
The New York businessman touted plans that he’s championed in recent weeks, including the child care tax credit he said his daughter Ivanka worked on with him, and a reduction in the business tax rate from 35% to 15%. He said the latter would lead to “an explosion” of new jobs.
The Republican nominee also said he would put a moratorium on all new federal regulations, aside from ones “compelled by Congress or public safety,” adding that he’d eliminate the Waters of the US Rule and the Environmental Protection Agency’s Clean Power Plan.
“We’re going to put our great miners and steel workers back to work,” the real-estate mogul said.
Trump said that lifting restrictions on energy production, which are in place for environmental protection, would increase GDP “by more than $100 billion per year” and add 500,000 jobs.
As is typical when Trump speaks about the economy, he lambasted the country’s trade agreements, promising a renegotiation of Nafta and promising to keep the country out of the Trans-Pacific Partnership. He added that he would instruct his trade representative to bring forth trade cases against China.
“We are going to turn this around,” he said of the economy.
Trump said the plan adds up because the $4.4 trillion in tax cuts he’s proposed would be offset by the 3.5% average yearly growth in GDP, which has not been attained since 2004 and has only be reached once since 2001; his trade, energy, and regulation reforms; and what he called “common-sense reforms” that don’t “touch defense spending and entitlements.”
His growth projection would offset $1.8 trillion of his tax plan, while the reforms would offset the remaining $2.6 trillion, he said.
The Republican nominee said those “common-sense reforms” would amount to cuts of 1% annually from the budgets of government agencies such as the departments of Education and Transportation.
“If our plan exceeds the 3.5% 10-year growth average, then our jobs proposal will actually reduce the deficit,” he said. “Savings will be compounded by the fact that people who are currently receiving unemployment or welfare will finally be able to find jobs.”
But several economists didn’t agree.
Trump’s plan could lead the US economy to be $1 trillion smaller than projected in 2021 if the plan is put in place, the economics research firm Oxford Economics said on Tuesday.
“Should Mr. Trump prove more successful in achieving adoption of his policies, the consequences could be far-reaching – knocking 5% off the level of US GDP relative to baseline and undermining the anticipated recovery in global growth,” it said.
Trump’s economic plan came under fire from Hillary Clinton, his Democratic opponent, in early August. She argued at the time that Trump hadn’t “offered any credible solutions for the very real economic challenges we face.”