Trump Gives Us a Look Into His Economic Policy
Donald Trump gave us the broad strokes of his economic policy yesterday; there is good and bad.
First the good. Lowering the corporate tax rate and eliminating the death tax is long overdue and the right thing to do. Moving the tax table to just three tax brackets is also a good idea, and will help simplify filing.
Reopening talks on US trade policy with Mexico and China is complicated, though appropriate as the terms of trade the US operates under is national suicide. Calling out China as a currency manipulator is both refreshing and absolutely true.
So, a good start.
Second, the bad. Paying for all child care expenses (not clear if he just means day care) is a political give away to draw votes and sets up a moral hazard for parents, children, and the child care sector as a whole. Free child care is going to get very expensive for the tax payer, and add to national debt. This has nothing to do with limited government and debt reduction.
Trump has proposed new spending on the military, the VA, infrastructure, and more, yet Trump did not address cutting spending, reducing the deficit or debt. What he is proposing in total will increase the yearly deficits and add to the national debt, something he has been campaigning to stop since 2015.
Pausing new regulations and reviewing old regulations has been talked of before at the state and federal level, rarely does anything meaningful come from it; it is cheap talk.
Trump’s economic team are supply-siders who will argue lower taxes will induce higher revenues in the later years so reducing the deficit and capping the debt; it won’t work. It didn’t work for Reagan, it won’t work now.
While initial peaks into Trump's plan reveals it is better than Hillary’s (less worse, which is something not nothing), it is not the solution America needs.