5 key points from Donald Trump's economic policy speech

Author:
Publish date:
Image placeholder title

Republican presidential candidate Donald Trump on Monday gave America an idea of the economic plan he would implemented if he wins this November's general election.

With Hillary Clinton set to give her own economic policy speech on Thursday, Trump got the first shot at laying out his vision for America's fiscal future.

Here are some of the key points of Monday's speech in Detroit:

Tax cuts – but not as much as first planned

Trump released a plan in September that proposed cutting federal tax for America's wealthiest earners from 39.6 percent to 25 percent.

However on Monday he changed that, CNBC reports, saying the top rate of income tax would be higher than first planned, set at 33 percent. The brackets for lower and medium earners would be set at 12 and 25 percent, respectively.

Analysts had said Trump's earlier plans would increase the U.S. deficit by $10 trillion over the next decade, but the altered plans are expected to increase it by $3 trillion.

Trump did however re-affirm his plan to cap income taxes on businesses at just 15 percent. It currently varies between 15 and 39 percent.

Relief for childcare, end of estate taxes

Other tax proposals from Trump include bringing an end to the estate tax, as well as the exclusion of childcare expenses from taxation.

Currently, there is a dependent care tax credit to help with childcare costs, the maximum for which President Barack Obama wants to triple to $3,000 per child, the Wall Street Journal reports.

People can also currently pay for childcare using untaxed income via flexible savings accounts (FSAs), but contributions are limited to $5,000 a year.

Ripping up climate agreements, bring back Keystone

Gawker reports Trump is proposing to revive the controversial Keystone XXL oil pipeline project that had been vetoed by President Obama, as well as remove the U.S. from agreements to fight climate change by reducing emissions.

His energy policy would see him tear up the Paris Climate Agreement and halt U.S. payments to the United Nations' global warming programs.

He would also lift all restrictions on U.S. energy generation, something he says would increase GDP by $100 billion, add 500,000 jobs, and increase tax revenues.

The New York Times adds that a moratorium on all new regulations from federal agencies could see a review of rules issued by the Environmental Protection Agency to curb carbon-dioxide emissions from power plants, as well as bringing more waterways and wetlands under federal protection.

Ending the 'hedge-fund loophole'

Trump has called for the elimination of the carried-interest loophole, referred to as the "hedge-fund loophole," which allows high earners to treat income as capital gains for tax purposes, the Atlantic reports.

The loophole allows hedge fund managers and private equity managers pay tax on their income at the capital gains rate of 15 percent, rather than the almost 40 percent rate of income tax, Business Insider notes.

In calling for it to be closed, Trump is in agreement with his opponent, Hillary Clinton.

Ending, changing trade deals

The North American Free Trade Agreement (NAFTA) between the U.S., Mexico and Canada, would be renegotiated under Trump, who says it's the reason behind the decline in industry – particularly the auto industry – in the "Rust Belt" states of the Midwest, the Los Angeles Times says.

Gone would be the proposed Trans Pacific Partnership (TPP) between 12 North American, Asian and Australasian countries which Trump claims Clinton backs (she did initially, but in October said she opposes it as it "failed to meet her test of providing good jobs, raising wages and protecting national security").

Trump says he would appoint trade negotiators who would "win for America" and apply tariffs on countries that cheat, NPR reports.

Next Up

Related