Man of an hour, Donald Trump, won the election on the promise to reinvigorate the American economy. Since the recession after World War II, American workers and businesses are suffering through slowest economic recovery.
The country has lost millions of manufacturing jobs, the middle class is dying, and poverty is exploding, millions of children don’t have enough food, and reckless spending has created the biggest debt bubble in the history of the planet.
Republican candidate and 45th US president vowed to increase the economic growth, cut taxes, shrink the federal government and increase overall spending. To unleash the sluggish economy of America Trump unveiled an ambitious economic proposal which is also known as Trumponomics.
Here is the list some key points that you need to know about the upcoming wave of reformation.
Trump’s Economic Plan is phenomenal regarding tax. This plan has four simple goals. Tax relief for middle class American to let them keep more money in their pockets and to increase after tax wages. The second objective of the tax reform is to reduce headaches faced by Americans by simplifying the tax codes.
The plan is also intended to grow the American economy by discouraging corporate inversions and by increasing the number of jobs to make America compete effectively in the international market. Core objective or goal of the Trumponomics tax reform is not to make any addition to debt or deficit.
Trump played well on tax grounds and attempted to reduce the frustration among Americans over their sense of financial insecurity, inequality, and fear of squeezing their incomes. Trump has faced fierce criticism for extended time for being escaped from paying taxes for almost two decades.
He has promised to cut the tax burden for all income groups. He has pledged to slash corporate tax to 15% and drastically reduce the personal tax rates as well. Trump promised massive tax reduction for working as well as middle-income Americans.
He has vowed to eliminate the income taxes for individuals who are earning less than $25000 annual and married couples making $50,000. Trump plan ensure that the richest will pay their fair share but Conservative tax foundation analysis indicated that tax policy is not appropriately helping the wealthiest Americans.
The good thing about this economic reform is that the tax brackets for individuals reduced from seven to three.
It’s true by all means that if a country has a right fiscal policy, it will grow rapidly. Thus the tax reform presented by Donald Trump is successfully filling the blanks and making remarkable additions to spur the economic growth of America.
Smart trade, not stupid trade
“Make America Great Again,” A slogan by Donald is what he wants to do for America. He identified trade as a force that has caused enormous economic damages to millions of people. He argued that past presidents ended up with bad trade deals. Prior trade policies have not only affected the American workers, but automation also hurts the job market.
Repercussions of free trade and globalization are not beneficial in case of America. The country has faced huge losses. Blue collar towns and cities have watched their factories and good paying jobs move overseas, America has been faced mounting trade deficit and devastated manufacturing base from a long time.
In this regard, Trump has come up with economic plans in which strong and free trade agreement are intended to take advantage of international trade to grow the American economy and to return millions of jobs back to American shores.
Smart trade strategy of trump to revitalize the suffering communities of his nation starts by the withdrawal from the Trans-Pacific Partnership (TPP) and formation of some new trade deals in the interest of American workers. Trump administration is also intended to crack down on nations that violate trade agreements and harm American workers like China, Mexico, and Japan.
Trump’s smart trade policy revolves around ripping up the trade deals like NAFTA, TPP; it criticized the trade affairs with countries which are taking advantage of America and advocates protectionism.
Trump administration has laid out its plan to strengthen the trade sector of the country. Most captivating notion of Trump is an idea that America’s trade deals have sold out the average Americans.
He promised to regain the economic stability and power of America by ripping up the trade deals like the North America Free Trade Agreement (NAFTA), Trans-Pacific Partnership (TPP) and get a strong partnership with China.
In short, Trump is intended to undue decades of trade policy with a stroke of the pen which is hard but not impossible.
Jobs and growth
The white house website painted a sorry picture of the American economy under the head of jobs and growth. It points out that manufacturing jobs have disappeared and the recovery is slow since 2008. Mr. Trump who came up with a bold plan to create 25 million new American jobs promised to return the economy to 4% annual economic growth rate.
The new president has proposed to do this by decreasing tax rate across board and business. Protectionist policies of Trump will keep jobs and wealth inside the United States. He promised to increase employment to strengthen the economic growth by establishing the plans like lower taxes, trade barriers, and tighter immigration rules.
Many economists have warned that his economic plans could make things worse, not better. The chances are that these financial policies will hinder economic growth and affect employer’s ability to create new jobs but some eye-catching claims of new presidents have raised expectations of Americans.
In the pursuit to supercharge the economic growth to 4% per year with 25 million jobs over the next decades, Trump has already signed orders to tear up the TPP and NAFTA agreements. He also pledged to scrap the environmental and financial regulations and to instigate a massive infrastructure spending spree.
Trump bemoaned the deteriorating condition of infrastructure and provided little detail about how he is going to rebuild all the cities, highways, bridges and much more. These big spending projects are not only for infrastructure development but they will also impressive for the health and growth of the economy by creating jobs.
Economics are skeptical about how these plans are going to hit the ambitious targets of Donald Trump.
Trump has proposed world’s greatest health care plan of 2017 to repeal and replace the Patient Protection and Affordable Care Act also known as Obamacare plan. According to Trump Obamacare is an expensive disaster. Therefore, Trumpcare plan is relatively cheaper for tax-free health saving accounts (HSAs).
Healthcare plan by Trump retains several provisions of Obamacare, but some aspects of the program are different. According to this scheme, there will be guaranteed access to health insurance for pre-existing health conditions.
The state will be given the resources and flexibility in their Medicaid programs and make sure that no one is left out. Under this plan, the state is allowed to provide Medicaid coverage to all low-income individuals living under 138 percent of poverty level.
This plan is a legal reform to save patients and doctors from unnecessary cost; it will drive up the insurance cost and decrease the price of high-cost drugs. The plan is also intended to create national insurance market place that will allow insurers to sell health plans across state lines.
GOP bill will provide tax credits to help individuals to pay their premiums if they don’t get insurance through work or government programs. The tax credit is refundable and advanceable. The amount of credit is tied to income and cost of insurance.
This plan would let insurers older age customer five times as much as young individuals to draw younger and healthier people into the individual insurance market. The amount of credit is tied to income of the individual and cost of insurance
According to Trump his health care plan under GOP will not only repeal and replace Obamacare but this reform will expand choice, increase access, decrease cost and at the same time it will provide a better health care. Trump called Obamacare a collapse and suggest that we should have to act decisively to protect Americans from imploding Obamacare disaster.
“Math only works in Fairyland” this is what critics say about Trump economic plan.
After a long and bitter campaign for US presidency, Donald Trump triumphed over Hillary Clinton. Trump supporter believes that Trump is going to shake up a system that many Americans feel has increased inequality and squeezed living standards.
Less complacent investors are worried about anti-globalization mantra of trump which will spread protectionism, put up trade barriers and curb global economic growth.
Donald Trump, an entirely new comer in the market, and an economic maverick promised to get the economy back on track, but not everyone agrees with it. Skeptical call this economic plan, a long shot budget that relies on rosy assumptions, is only wishful thinking.
Have patience and stay tuned to see what this economic reformation is going to bring for Americans.