Republican presidential candidate Donald Trump, in what his campaign called a major economic speech at the Detroit Economic Club, called for a 15 percent cap on all business income tax and an overhaul of the tax code.
Trump’s economic plan would end the estate tax and exclude child-care expenses from taxation, while promising to use executive powers to impose a moratorium on new agency regulations.
On trade, Trump once again said he would tear up the 12-nation Trans-Pacific Partnership trade deal that’s pending in Congress, renegotiate the North American Free Trade Agreement and label China a currency manipulator.
“I am proposing an across-the-board income tax reduction, especially for middle-income Americans,” Trump said. “This will lead to millions of new good-paying jobs. The rich will pay their fair share, but no one will pay so much that it destroys jobs, or undermines our ability to compete.”
As part of this reform, Trump said if elected his administration would eliminate the Carried Interest Deduction and “other special interest loopholes that have been so good for Wall Street investors, and people like me, but unfair to American workers.”
Tax simplification will be a major feature of the plan, he said. The plan would reduce the number of brackets to three from seven, and streamline the process. Following a plan proposed by House Republicans, the brackets would be 12, 25 and 33 percent.
The current corporate rate is 35 percent, and Republicans have long sought to reduce it. But some economists have questioned where the government would recoup the lost income.
“Under my plan, no American company will pay more than 15 percent of their business income in taxes,” he said. “Small businesses will benefit the most from this plan.”
There is now a tax credit for child and dependent care, which is determined based on income and capped at expenses of $3,000 for one individual or $6,000 for two.
“Finally, no family will have to pay the death tax,” Trump added. “American workers have paid taxes their whole lives, and they should not be taxed again at death — it’s just plain wrong. We will repeal it.”
Trump said upon taking office, he will issue a temporary moratorium on new agency regulations.
“This will give our American companies the certainty they need to reinvest in our community, get cash off of the sidelines, start hiring for new jobs and expanding businesses,” he said.
Turning to trade, the GOP standard-bearer said his plan for reform includes strong protections against currency manipulation, tariffs against any countries that cheat by unfairly subsidizing their goods and a renegotiation of NAFTA.
“At the center of my plan is trade enforcement with China,” Trump said. “China is responsible for nearly half of our entire trade deficit. They break the rules in every way imaginable. China engages in illegal export subsidies, prohibited currency manipulation and rampant theft of intellectual property. They also have no real environmental or labor protections, further undercutting American workers.”
The Democratic platform took an expected hard line on China, which it has done in the past, and called for strengthening enforcement of existing trade rules and tools, including cracking down on currency manipulation, subsidies and counterfeits.
Trump added Monday, “Trade has big benefits. I am in favor of trade. But I want great trade deals for our country that create more jobs and higher wages for American workers. Isolation is not an option, only great and well-crafted trade deals are.”
Democratic candidate Hillary Clinton‘s campaign said Trump’s plan would give tax breaks to the wealthy and big companies, and would hurt working families and trigger a recession.
Clinton, who recently has proposed a jobs plan paid for by higher taxes on Wall Street banks and the country’s highest wage earners, will be in Detroit on Thursday to deliver an economic speech of her own.