Election Countdown 52
TRUMP WATCH & THE ECONOMY – Hillary Clinton’s post-DNC Convention bump in the polls has evaporated, and Donald Trump’s numbers are rising. His NEW YORK ECONOMIC CLUB speech on Thursday included new tax reform details and was encouraging. He identified “economic growth” as the most important domestic priority and set a national goal of 4% growth. He proposes overhauling the tax code, something that hasn’t happened in 30 years!
Personal Taxes: He wants to have only 3 personal income tax bracket rates: 12%, 25%, and 33% (in line with House Republicans’ “Better Way” initiative recently discussed by Congressman Buddy Carter at a series of town hall meetings). Trump introduced a new cap on personal income tax deductions: $100,000 for single filers; $200,000 for couples. This cap idea is a brilliant strategy so as to avoid battles with every special interest group in Washington. He would set the top rate on capital gains at 20%. His only political carve-out appears to be Ivanka’s proposed child-care tax credit and deduction that would encourage women to join and in some cases re-join the work force — and incidentally support the creation of new jobs in the child care sector.
Corporate Taxes: He recommends a more globally competitive tax rate of 15% and full expensing in place of depreciation schedules for all U.S. based manufacturers. He discussed regulations at length, promising a moratorium and stream lining. He would unleash U.S. energy production, thereby creating more jobs. He’s renegotiate NAFTA with Mexico & Canada, kill the Pacific trade deal, and label China as a currency manipulator.