|Donald Trump's Plan to Stimulate Business Growth|
|keywords: Business Growth Jobs Growth Tax Reform Trump|
The blueprint that was provided by Donald Trump for stimulating business growth in the US mainly consisted of tax incentives. In this article, we will take a look at some of these incentives as well as other plans that he has in the pipeline in order to help the US improve its stagnant and weak economy.
In his revamped tax cut plan that he famously laid out in his speech at the Economic Club of New York, he said that his tax cut plan would cost $4.4 trillion instead of $9 trillion that was earlier proposed as per independent estimates.
In an attempt to simplify the tax code for the masses, and specifically the business community in order boost business and growth, Trump has announced that he is looking to reduce the corporate tax from 35 percent to 15 percent and remove 4 out of the seven tax brackets making things simpler and easier. Outstanding!
As far as small businesses are concerned, a recent study has revealed that they are responsible for about two-thirds of all the jobs that are created in the private sector. Here is how Trump is going to shake things up for the better – create over 25 million jobs and boost the sector at a robust 3.5 percent per year on average (Obama never hit 3% for any quarter making him one of the worst presidents of all time):
o A new trade policy billed America First
o A new and modern regulatory framework
o A new pro-growth tax reform structure aimed at both households and small businesses
o Releasing all the unused and confined energy of American energy sector
According to a report, around $2.5 trillion in cash has been stashed away in safe houses and tax havens by MNCs and various companies who are actively trying to avoid paying taxes to the government and for good reason. A 35% corporate tax rate is preposterous. Donald Trump believes that lowering the taxes will help solve part of the equation and a repatriation tax of 10 percent should further this awesome scenario.
This newly found source of cash would be then utilized to grow the economy since many businesses would use that to expand in America by opening up more shops and hiring more people.
Trump says that he is going to scrap the job killing food safety standard regulations, the irrational emission (power plant) standard regulations, and the business stifling ground level ozone layer among several other regulations. This will provide these sectors an impetus for growth which is needed at the moment.
Donald Trump is confident in his plans and says that his new policies would propel America to a level that has not been seen since the early and mid-90s when Newt Gingrich and the Republican led Congress forced President Bill Clinton to balance a budget which aided economic growth. Gross domestic product should see a 3.5 percent growth while adding an additional 3 million jobs over the 22 million jobs that were created in the 90s because of the balanced budget and remember, much of that 90s happiness was fake tech growth which imploded at the turn of this century.
This is even more critical and significant considering the fact that we are comparing data between two different periods with a sizable gap of around two decades, and things are more difficult now. The work force is aging and birth rates are slowing down, and yet if Trump is able to deliver on these promises then his name would be forever remembered as one of the greatest presidents in the US which is set to happen, much to the chagrin of President Obama and the Democrats.
Source: Benjamin R
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