What Do These 5 Economic Policies Trump Pushed During His Campaign Mean For The Future?
As Donald Trump prepares to be sworn in as the 45th President of the United States of America, economists and analysts are studying Trump's rhetoric on the campaign trail to hint at future economic policies. Here are five of the biggest economic issues Trump discussed while campaigning.
Trump's tax plan calls for consolidating the seven federal income tax brackets into three. Under Trump, ordinary income would be taxed 12%, 25% or 33% depending on the amount, a move the Center for American Progress Action Fund says would give the top 1% of taxpayers a $1M tax cut. On the corporate level, Trump said he'd cut taxes from the current 35% to 15% while removing the estate tax, a tax that only applies to people who inherit at least $5.45M.
Trump took a strong stance on trade, saying deals like NAFTA have cost American workers thousands of jobs, and his platform calls for immediately renegotiating the terms of such agreements. He's also called for officially labeling China a currency manipulator and said he wants to impose tariffs as high as 45% on Chinese imports and 35% on Mexican imports. Trump has also pledged to withdraw from the Trans-Pacific Partnership.
3. Social Security
At a June rally in Phoenix, Trump said, “I will do everything within my power not to touch Social Security, to leave it the way it is.” He said he'd do this by making more money for the program through payroll taxes on jobs he wants to bring back into the country. While it may seem like Trump's position is pretty straightforward, he did give himself some room to make changes in his comments to AARP, saying "changes might be necessary for future generations."
Trump's comments on immigration during his campaign are among his most well-known, especially his call for a 2,000-mile-long wall along the border of Mexico, which Trump always asserts Mexico will pay for. He's also called for the deportation of around three million illegal immigrants. If that's done, economists fear it would slow economic output by making it harder for employers to find workers in an already tight labor market.
Trump claims his $1 trillion infrastructure plan would add nothing to the national deficit by funding the plan mostly through tax credits passed by Congress. Trump says his plan will rebuild the nation's crumbling infrastructure and create 13 million jobs. Trump also wants to push through the Keystone XL pipeline despite known environmental hazards and major protests.