tax decrease, deregulation, free trade late … The economic shock as Trump – The Obs

within 100 days of the US election, Donald Trump press the “reset” button. To stop his fall in the polls, forget the polemics in which it is pressed, the Republican candidate for the White House Monday, August 8 moved the debate on the economy, an area where he believes Hillary Clinton vulnerable. During a speech to the Economic Club of Detroit, the capital of the US auto industry, the businessman, applied to center his speech on the liberalization of growth which grew by 1.2% per year.

Supposed to be an ace in the economic system of his job, he multiplied the impact proposals (although in the Republican ideological line), without detailing how he would do, and many approximations.

# Tax cuts for all

Individuals, businesses, parents, descendants …. everyone is entitled to a reduction of taxes if Donald Trump was elected in November. “I propose a general reduction of the income tax, especially for middle class Americans,” he said. “This will create millions of jobs.”

• The Republican candidate wants to make less progressive federal income tax and go to a tax system in three tax brackets instead of current seven (in September, Donald Trump had proposed reducing from seven to four the number of slices). It proposes to reduce the maximum rate of 39.6% to 33%. “The tax rate for most American workers will be zero,” he he said. Probably to show goodwill hit his camp that the criticism growing, it aligns well that wishes to set up the Republican majority in Congress.
• Another popular proposal, prepared by him with his daughter Ivanka, is to make tax-deductible full costs of care children-very expensive in the United States-. A measure that would mainly benefit the more affluent who already undertake large deductible expenses households. It provides no information on the implementation of this measure.
• He wants to remove the inheritance tax, also called “death tax,” which strikes today as more than five million dollars for an individual. The repeal of this tax would only benefit 5,400 families, that would make a $ 3 million savings, said the “New York Times”.
• Finally, it is favorable to decrease Corporations Tax from 35 to 15% at a 10% tax on repatriation of profits abroad. He believes that the United States need a moratorium on new economic regulations and eliminating those “that are not necessary, do not improve the safety and needlessly destroy jobs.”

# commercial Renegotiation

Donald Trump reiterated his denunciation of free trade agreements.

“Hillary Clinton supported the trade agreements that have cost this city [speaking of Detroit] and to this country their jobs and wealth, “accused Donald Trump.

Among the agreements it wishes to terminate:

• The TPP: Donald Trump would withdraw from the “TPP” concluded in 2015 by Barack Obama with 11 Pacific rim countries, whose ratification is currently blocked in the US Congress
• NAFTA. Donald Trump wants to renegotiate the north American free trade Agreement, negotiated with Mexico and Canada by Presidents George HW Bush and Bill Clinton, came into force in 1994. This is mainly Mexico, where many US factories were delocalized, which is targeted by the Republican. “If we do not improve the terms, we will withdraw,” he threatened.
• The applicant wishes to include new protections against currency manipulation and possibility of customs penalties against “countries that cheat by subsidizing their products.”
• He wants to continue the Chinese for the theft of intellectual property, fight against the Chinese commercial dumping and manipulation of the Chinese currency. “China is responsible for almost half of our trade deficit,” insisted Donald Trump .

Energy #

His economic program also includes the deregulation of the energy sector.

• Donald Trump just wants to cancel Barack Obama’s climate plan and the Paris agreement on climate.
• He wants to revive the coal mining by removing environmental regulations that made the old obsolete coal-fired power.
• No wonder either, he proposed the revival of the offshore oil and gas extraction. He promised to ask the company TransCanada to renew the permit application for the Keystone XL pipeline project between Canada and the United States, rejected by the Obama administration in 2015.

economists Reviews

the economic project of billionaire is criticized by many economists because it is unclear to finance its huge tax cut, but merely stated that it would boost growth . The Tax Policy Center estimated in December that significantly widen the deficit.

Democrats denounce tax cuts that mainly benefit the better-off households, while Hillary Clinton wants to raise taxes only on very high incomes.

the economy remains a major concern of voters and, on this ground, they trust in proportions equivalent to each of the two candidates, according to a poll “Washington Post “published Sunday.

(with SD AFP)