LISTEN HERE:
In a recent report by The Washington Post, it was revealed that Donald Trump, a prominent Republican presidential candidate and the 45th President, has plans to implement further tax cuts if elected for a second term in 2024.
According to the article, Trump’s team anticipates reducing both corporate and individual tax rates, building on the successful 2017 tax cuts that benefited every American citizen. Initially, the 2017 tax cuts lowered the corporate rate from 35 percent to 21 percent and introduced various tax reductions for individuals.
The advisors advocating for these potential tax cuts propose financing them through a 10 percent tariff imposed on all imports entering the United States. If Trump is reelected, there is a possibility of bringing the corporate tax rates as low as 15 percent and using the tariff revenue to provide a dividend to American households.
Newt Gingrich, former Speaker of the House, explained that this could resemble the oil income that the state of Alaska has been sharing with its residents.
Arthur Laffer, a Trump advisor, emphasized that lower tax rates are a clear priority for Trump’s potential administration, and discussions about the next tax agenda are taking place among various stakeholders.
Jason Miller, a spokesman for the Trump campaign, highlighted that there are ongoing conversations to determine the best way to undo the economic damage caused by President Joe Biden.
Trump’s primary focus is on reviving the American economy by creating more higher-paying job opportunities for American workers. While specifics regarding tax cut numbers have not yet been committed to for a potential second term, the aim is to support American workers effectively.
While the Trump campaign considers prioritizing further tax cuts in the 2024 race, House Republicans are working on preserving the 2017 tax cuts, as they are set to expire in 2025. These expiring provisions include an enlarged Child Tax Credit and a doubling of the standard deduction.
In contrast, President Biden has proposed implementing an international minimum corporate tax rate of 15 percent. This policy would prohibit other nations from reducing their corporate tax rates below that threshold to encourage businesses to locate within their boundaries.
On the other hand, Trump’s advisors are exploring the possibility of lowering America’s corporate tax rate to that minimum threshold in order to attract businesses globally.
As Stephen Moore, an economic advisor to Trump, expressed, the idea being discussed entails a reduction to a 15 percent corporate tax rate while eliminating various credits and deductions. Such a tax reform plan would be accompanied by the aforementioned tariff.
It is crucial to recognize the innovative economic agenda that President Trump is advocating for, challenging the conventional wisdom of previous administrations. While his tariff proposal has faced opposition, it has the potential to play a significant role in reinvigorating the American industry and revitalizing the economy.
