by Michael Snyder, The Economic Collapse Blog:
Can Donald Trump turn the U.S. economy around? This week Trump unveiled details of his new economic plan, and the mainstream media is having a field day criticizing it. But the truth is that we simply cannot afford to stay on the same path that Barack Obama, Hillary Clinton and the Democrats have us on right now. Millions of jobs are being shipped out of the country, the middle class is dying, poverty is exploding, millions of children in America don’t have enough food, and our reckless spending has created the biggest debt bubble in the history of the planet. Something must be done or else we will continue to steamroll toward economic oblivion. So is Donald Trump the man for the hour?
If you would like to read his full economic plan, you can find it on his official campaign website. His plan starts off by pointing out that this has been the weakest “economic recovery” since the Great Depression…
Last week’s GDP report showed that the economy grew a mere 1.2% in the second quarter and 1.2% over the last year. It’s the weakest recovery since the Great Depression – the predictable consequence of massive taxation, regulation, one-side trade deals and onerous energy restrictions.
And Trump is exactly right about how weak this economic recovery has been.
So how would he fix things?
The following are 10 things that every American should know about Donald Trump’s plan to save the U.S. economy…
#1 Donald Trump would lower taxes on the middle class
The tax savings under Trump’s plan would actually be quite substantial for middle class families. The following numbers come from a recent Charisma article…
• A married couple earning $50,000 per year with two children and $8,000 in child care expenses will save 35% from their current tax bill.
• A married couple earning $75,000 per year with two children and $10,000 in child care expenses will receive a 30% reduction in their tax bill.
• Married couple earning $5 million per year with two children and $12,000 in child care expenses will get only a 3% reduction in their tax bill.
#2 Donald Trump would lower taxes on businesses
Under his plan, no business in America would be taxed more than 15 percent. Alternatively, Hillary Clinton’s plan would tax some small businesses at a rate of close to 50 percent. So Trump’s plan would undoubtedly be good for businesses, and it would encourage many that have left the country to return.
But where would the lost tax revenue be made up?
#3 Childcare expenses would be exempt from taxation
For working families with children this would be a great blessing. Without a doubt this is an effort to win over more working women, and this is a demographic that Trump has been struggling with.
It is definitely an idea that I support, but once again where will the money come from to pay for this?
#4 U.S. manufacturers will be allowed to immediately fully expense new plants and equipment
This would undoubtedly lead to a boom in capital investment, but it would also reduce tax revenue. As an emergency measure this would be very good for encouraging manufacturers to stay in America, but it would also likely increase the budget deficit.
#5 A temporary freeze on new regulations
Red tape is one of my big pet peeves, and so I greatly applaud Trump for this proposal. I think that Bob Eschliman put it very well when he wrote the following about Trump’s planned freeze on new regulations…
In 2015 alone, federal agencies issued over 3,300 final rules and regulations, up from 2,400 the prior year. Studies show that small manufacturers face more than three times the burden of the average U.S. business, and the hidden tax from ineffective regulations amounts to “nearly $15,000 per U.S. household” annually. Excessive regulation is costing our country as much as $2 trillion dollars per year, and Trump will end it.
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