While Trump’s legal team is completely occupied with the legal cases in Florida, Georgia, New York, and Washington DC, he continues to gather growing support among voters by winning two states in just a few days, South Carolina and Michigan. Trump’s campaign so far has reminded the public on several occasions about the former president’s controversial opinions on different topics. Just recently, Trump said that he would encourage Russia to ‘do whatever the hell they want’ to any NATO country that doesn’t pay enough if he becomes president. But Trump recently also spoke about what matters to most Americans: the economy, financial stability, and taxes.
The American economy under Trump presidency was booming
The U.S. economy made a lot of progress while Donald Trump was president, mostly because of a set of bold policy measures. The Tax Cuts and Jobs Act of 2017 is a key part of his economic strategy. It lowered the tax rate on businesses from 35% to 21% and the tax rate on individuals in most tax brackets. The goal of this congressional action was to boost economic growth by giving many Americans more money to spend and corporations more money to make, which they would later reinvest.
It’s worth mentioning that before the COVID-19 pandemic started, the U.S. had a time of steady growth with low unemployment rates and rising wages, continuing the expansion that started under the previous administration. As part of Trump’s larger plan to reduce regulations and limit immigration, these steps were meant to make the country more business-friendly, which would attract investment and job creation.
Trump’s decision also showed the negative side of the U.S. economy
But Trump’s rule was also marked by problems with the economy, some of which were made worse by his own policies. Protectionism and tariffs on imports from key trading partners like China, Mexico, and Canada were big parts of his trade policy. This caused a trade war that made prices go up for consumers and businesses, slowed down investment and exports, and slowed down economic growth. Even though the aggressive trade attitude was meant to protect American jobs and industries, it led to tariffs that hurt many parts of the U.S. economy.
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Also, the COVID-19 virus caused economic chaos that had never been seen before. This caused the economy to shrink in a way that had never been seen before, resulting in the loss of millions of jobs and incomes. Some experts say that the reaction to the pandemic wasn’t enough and wasn’t consistent. This showed how weak the economy was and how uneven the recovery was, leaving some groups and sectors more affected than others.
Donald Trump to lower taxes again if he becomes president
Donald Trump pledged a fresh round of tax cuts if he wins the presidency, following up on legislation passed during his term in the White House that reduced levies on businesses and some households.
“You’re all getting the biggest tax cuts because we’re doing additional cuts and a brand new Trump economic boom like you’ve never seen before,” Trump said at a rally in South Carolina on Friday, a day before the state’s primary.
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Trump has said he plans to raise tariffs on imports from other countries while lowering taxes significantly for American workers and their families. He’s looked into various tariff strategies, such as imposing a 10% tax on all imported goods and even higher tariffs on goods from China. Experts have pointed out that these tariffs usually end up costing consumers more.
Trump already has a tax strategy
Behind the scenes, Trump and his team have been thinking about how to handle taxes if he gets a second term. His 2017 tax cuts for individuals and small businesses are set to expire by the end of 2025, and it will be up to Congress to decide whether to extend or increase them. These tax cuts have been criticized for benefiting the wealthy, real estate investors, and business owners more than the average or low-income families. Public opinion polls indicated that the tax law wasn’t popular and contributed to the Democrats taking control of the House in 2018, which blocked a lot of Trump’s plans in Washington.
Trump is not expected to further lower corporate tax rate
Trump has also mentioned to his close supporters that he’d rather keep the corporate tax rate at 21%, not lower it to 15% as he had previously wanted. This idea had been met with resistance from both Republicans and Democrats.
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Despite some controversial positions and a divisive way of speaking, Trump’s tax policies have kept him in favor with certain business circles, donors, and voters.
Trump’s team is looking to secure the nomination soon, so he can shift his attention to potentially running against President Joe Biden again and dealing with his legal challenges, one of which goes to trial on March 25.
