Those who listened to Donald Trump’s speech to the Detroit Economic Club on Monday had the honor to meet his new plan for revitalizing the American economy.
“Winning the Global Competition” is representing his understanding of economic growth. Sadly, neither new measures were offered, no a coherent plan.
His ideas fall under four main headings: taxes, regulation, energy and trade. Of course, current U.S. policy needs some improvement in each sphere.
First of all, Trump proposed income tax reduction, especially for middle-income Americans. Tax simplification will be a major feature of the plan with reducing the number of tax brackets from 7 to 3. Also he wants American companies to pay no more than 15% of their business income in taxes, which three times less. Trump is going to cut regulations massively.
According to the plan, Trump wants to reduce the cost of childcare by allowing parents to fully deduct the average cost of childcare spending from their taxes.
The main criticism over tax issue comes as permanent tax reductions require permanent spending reductions, and on that subject Trump has almost nothing to say.
Going on with regulatory reform, Trump promises to issue a temporary moratorium on new agency regulations. And all regulations, that “are not necessary, do not improve public safety, and which needlessly kill jobs” will be eliminated.
But US is one of the most lightly regulated economies in the world. And if the changes are needed, it is necessary to move with close attention to details, but not like Trump is used to do.
Over a trade reform, Trump has already laid out a detailed 7-point plan on his website. These steps include strong protections against currency manipulation, tariffs against any countries that cheat by unfairly subsidizing their goods, and it includes a renegotiation of NAFTA.
But still all Trumps’ ideas remind rough plan that still needs to be worked out.
P.S. Clinton is going to talk about her view on economic development in Michigan on Thursday.