Most businesspeople don’t have the ability to convert their understanding of the corporate world into a coherent set of policies that will work across the economy and particularly on the supply side. They know what might work for them, but not necessarily across the board. I hadn’t even known Trump had even begun to develop a coherent approach to economic recovery, and it certainly does look to me as if he has had some very clued-in assistance in putting it together. It is in part outlined here: Beyond All the Bluster Trump’s Economic Plan Focuses on Growth, Jobs. This is the sort of thing that will work:
- slash the corporate tax rate to 15%, down from the current 40%, the highest rate in the industrialized world
- a one-time 10% repatriation tax on profits American companies made overseas and kept there to avoid the 40% rate
- allow companies to write off the purchases the year they’re made, rather than over several years, as current law requires
- the lower 15% rate business rate would also apply to small businesses that usually get taxed at individual income tax rates
- his “make America rich” plan targets impoverished cities like Baltimore with incentives for companies to move there
- convert the current State Department program that brings about 100,000 young foreigners into America to work in restaurants, camps, and seaside resorts under J-1 visas into a jobs bank for American inner city youth.
Compare Donald Trump’s blueprint with Secretary Clinton’s nightmare scenario: Higher taxes, more tax complexity, and an avalanche of new regulations. Over-regulation has depressed growth for the last fifteen years. The Obama administration suffocated business with 81,000 pages of new regulations in 2015 alone. Hillary Clinton is pushing for even more – with controls on hiring, pay, bonuses and overtime to promote “fairer growth.” Translation: gender and racial preferences, plus meddling in how much you get paid.
Remember President Obama’s statement, “You didn’t build that.” Well, Mrs. Clinton assumes “you don’t own that.” Government will run your business. Mrs. Clinton wants companies to stop maximizing quarterly earnings for shareholders – what she derides as “quarterly capitalism.” She wants “farsighted investments,” as defined by government, of course. Companies that can get out of the U.S. will rush for the exits. She’s even promising an end to “the boom and bust cycles on Wall Street.” As plausible as ending rainy days.
Infantile versions of fairness seldom mix well with sound economic policy. Trump has nevertheless put together a package that will work, although the cuts to spending and the scaling back of programs will also at some stage have to be included as well. But what we find above is very good, and about time.
And for what it’s worth, the article was written by Elizabeth “Betsy” McCaughey, who was Lieutenant Governor of New York from 1995 to 1998, during the first term of Governor George Pataki.
FURTHER REPORTS: It’s Reuters reporting on what CNBC is reporting, which is remarkable in itself: Trump wants to help U.S. businesses by lifting slew of regulations: CNBC.
U.S. Republican presidential candidate Donald Trump said on Thursday that if elected he would scrap a slew of federal regulations that he said are even more of a burden on American business owners than high taxes, and would try to refinance longer-term U.S. debt.
Not much detail in the story but you may be sure these are the kinds of things he means to do and will know which regulations ought to go.