Here is Donald Trump's economic plan as promoted by his advocates.
Trump's plan contains elements of a traditional conservative agenda, like cutting corporate tax rates and reducing regulations, but mainly it focuses on reducing the "pull" of domestic investment offshore and the "push" of American jobs to foreign countries. Trump would do that by renegotiating trade deals (through which, the paper says, Trump would be able to close the country's $500 billion trade deficit), as well as getting the World Trade Organization to change rules that treat countries that rely more heavily on income taxes, like the U.S., differently than those that rely on "value-added tax" systems, like Germany, China and Mexico.
Navarro and Ross write that Trump's plan would increase annual economic growth to an average of 3.5 percent. "They also believe that, coupled with spending cuts, the plan will generate additional tax revenues that will make up for all the revenues lost from his tax cuts - between $4.4 and $5.9 trillion, by one analysis - meaning the plan would not add to the deficit. The independent Center for a Responsible Federal budget disagrees with that assessment, projecting Trump would in total add $5.3 trillion to the budget; its analysis did not account for any higher growth from the plan," Tankersley writes. Read the full paper here and Tankersley's explanation here.
WASHINGTON ― In late August, the private equity firm chaired by billionaire Wilbur Ross agreed to pay a $2.3 million fine and return $11.8 million that regulators said it had bilked from its own clients ― which included pension funds and universities. On Wednesday, Ross co-authored an economic analysis for Donald Trump.
The Securities and Exchange Commission had alleged that WL Ross & Co. failed “to disclose its fee allocation practices” for more than a decade in some private equity funds it managed. In human-speak, the SEC was accusing the firm of fudging its numbers to steal from its investors. This week, Ross was attempting to rebut calculations from a conservative think tank that Trump’s economic plan doesn’t add up. To do so, he relied on magic numbers and fantastical thinking.
Analyzing Trump’s tax policies, The Tax Foundation concluded that they would cost $2.6 trillion over the next decade. This was a low estimate ― when the group ran the numbers without relying on assumptions about tax cuts for the wealthy stimulating economic growth, the hit to the national debt would have been as high as $5.9 trillion.