Trump Promises Economic Boost by Cutting Federal Spending and Taxes

Former President Donald Trump addressed a gathering of executives and industry leaders on Thursday, outlining his vision for what he termed a “national economic renaissance.” Central to his plan are significant regulatory rollbacks designed to enhance energy production, the incorporation of cryptocurrencies, and substantial reductions in government spending. He also proposed cutting corporate taxes for companies that manufacture domestically.

Speaking before the Economic Club of New York, Trump articulated his intent to announce a national emergency that would facilitate a considerable increase in domestic energy resources. He vowed to eliminate ten existing regulations for every new one introduced. Furthermore, he revealed that Elon Musk, the CEO of Tesla and SpaceX, has agreed to oversee a commission aimed at auditing federal government finances with the goal of achieving savings in the trillions of dollars. Trump asserted, “My plan will rapidly defeat inflation, quickly bring down prices and reignite explosive economic growth.”

During his speech, Trump reminisced about his previous address to the same group eight years ago, emphasizing his economic accomplishments during his tenure in office. He highlighted the job creation under his administration, alongside tax reductions and regulatory reforms, as well as his efforts to renegotiate trade agreements.

This appearance followed his participation in a Fox News town hall, where he criticized his electoral opponent, Vice President Kamala Harris, claiming her policies would drive major corporations away from the United States if she were to win the election.

Trump has previously suggested reducing the corporate tax rate from 21% to 15%. On Thursday, he specified that this cut would apply only to companies that produce within the U.S. Upon taking office in 2017, he inherited a corporate tax rate of 35% and subsequently enacted a law that lowered it. Additionally, Trump proposed eliminating taxes on tips and Social Security income.

The contrasting visions of Trump and Harris concerning corporate tax rates reflect their broader economic strategies. While Trump seeks to reduce the rate, Harris has called for an increase to 28%. This divergence illustrates the stark economic outlooks proposed by the two leading candidates in the upcoming election.

According to an AP-NORC poll conducted in August, Trump held a slight edge over Harris regarding who voters believe would better manage the economy. The poll indicated that 45% of adults favor Trump’s economic leadership, while 38% preferred Harris.

Harris has focused her recent policy initiatives on fostering entrepreneurship, claiming that easing the path to forming new businesses is key to enhancing middle-class prosperity.

Economists have raised concerns about Trump’s proposal to impose tariffs intended to bring manufacturing jobs back to America, cautioning that such measures could exacerbate inflation, despite his promises of reducing costs. Inflation rates peaked at 9.1% in 2022, but have since decreased to 2.9% as of last month.

“Some might say it’s economic nationalism. I call it common sense. I call it America First,” Trump stated during his address.

The Biden administration has continued the tariffs on China that were instated during Trump’s presidency and has placed restrictions on the export of advanced computer chips to China.

In terms of capital gains, Harris advocates for a top rate of 28%, while Biden has proposed nearly doubling the existing rate to 39.6% for high-income investors making over $1 million. Both candidates aim to increase tax rates on investment income.

While attacking Harris’ proposals to eliminate price gouging, Trump accused her of endorsing communist and Marxist ideologies. “She wants four more years to enforce the radical left agenda that poses a fundamental threat to the prosperity of every American family and America itself,” he asserted.

In New Hampshire, Harris emphasized her plan to enhance tax deductions for business startup expenses and set an ambitious goal of 25 million new company applications within the next four years.