Donald Trump’s economic plan sounds like it will make the rich richer, the poor poorer, and could possibly create another recession in the economy. And why does that fact surprise people so much? Because he seems to research and plan things out so well that he often says whatever comes to mind and insults entire ethnicities? Because he’s so wealthy that he actually cares more about that class? What’s so shocking with his plan? To me, it’s more that he even came up with one, and one so extremely terrible I still can’t follow how he ever was smart enough with money to become rich.
Donald Trump’s tax cuts
First, Trump offered up a proposal that would cut the income tax brackets in half, reducing tax rates to 12%, 25%, and 33%. He also stated he wants to lower federal income tax rates overall to 10%, 20% and 25%. Sure, this sounds great to voters, but it would add a massive amount to the national debt numbering something beyond infinity trillion dollars. And the more you add to that debt, the more likely the country is to fall into recession again. We’re still not even totally out of the last one, and yet this light bulb is proposing ideas to put us back into one.
For businesses, Trump states that he would lower the business tax rates for corporations and small businesses from 39% to 15%. Elizabeth Warren loudly pointed out what a disaster this could be—taking money from education, necessary research, and the infrastructure of the economy itself. And with people like Trump and Clinton running for president in this country, we really need those big bucks going to education. Plus, this type of tax cut would massively benefit the larger, richer corporations, as critics have been quick to point out—mainly the type of tax bracket Trump falls into.
Scaling back regulations
Trump is also proposing a scale back on some of the same economic regulations that caused the 2008 recession to happen in the first place. The regulations are what helped to stabilize this economy in the first place. And again, it’s another move that would basically benefit the richest of the rich.
Moody’s Analytics completed an assessment of Trump’s proposed plan that demonstrated if Trump really did this, incomes of citizens would plummet, and stock prices and house prices would decline. Trump proposed trying to even this out by punishing companies that move jobs overseas, but this could massively impact the growth the country’s achieved since the last recession. And many still question if Trump has, in fact, ever actually done this with his corporations. Backing up Moody’s Analytics, the US Chamber of Commerce even came out and recently expressed its worry over many of Trump’s proposals, verifying that many of those moves would indeed cause a recession.