- Tax Reform: The cornerstone of Trump’s plan is a 15 percent business tax rate. The U.S. currently has the highest corporate tax rate in the industrialized world. Under Trump’s plan, we become a nation with one of the lowest rates. The plan also repeals the death tax. Individual brackets are simplified by collapsing seven brackets to three (12, 25, and 33 percent). Unfortunately, Trump keeps our world-wide system of taxation and ends corporate tax deferral. The plan calls for a 10 percent rate to be imposed on the almost $2.5 trillion in already accumulated offshore earnings. The billions of dollars raised from this one-time repatriation would pay for significant investments in infrastructure improvements.
- Regulatory reform: Trump addresses the current regulatory burden on U.S. businesses by issuing a temporary moratorium on new regulations. His plan includes a comprehensive review of all current regulations to assess their effectiveness, with the assumption that most need to be repealed. It requires each federal agency to prepare a list of all of the regulations imposed on American businesses, and rank them from most to least critical with respect to health and safety. Least critical regulations receive priority consideration for repeal. The plan specifically targets the Environmental Protection Agency’s Clean Power Plan and Waters of the United States rule. A provision repeals the moratorium on coal mining permits.
- Trade reform: The prescription for trade reform is the most troublesome aspect of the economic plan. Trump turns back the progress made on market-opening free trade agreements by withdrawing the U.S. from the Trans Pacific Partnership and renegotiating the North American Free Trade Agreement. The plan also calls for aggressive enforcement against trade violators and places China squarely in the center of that action by formally labeling it as a currency manipulator.
- Energy reform: Trump’s energy plan goes after EPA regulators and dismantles action taken to combat climate change and global warming. It also proposes revival of the Keystone pipeline; opening the Outer Continental Shelf to oil and gas exploration; and lifting restrictions on energy usage.
For more information on Donald Trump’s positions on the issues important to manufacturers visit www.donaldtrump.com.