Donald Trump pledged to cut corporate taxes, roll back regulations and audit the federal government, echoing ideas from his billionaire backer Elon Musk as he presented his agenda to Wall Street and business leaders in New York.
“I promise low taxes, little regulation, low energy costs, low interest rates, secure borders and very, very low crime,” Trump said Thursday at the Economic Club of New York, seeking to draw a contrast with his Democratic rival Kamala Harris.
His speech centered on a call to cut the corporate tax rate to 15 percent for companies that manufacture their products in the U.S. The move would be a significant reduction from the current rate of 21 percent — a major policy victory under Trump’s own 2017 tax law.
“We want to make our goods in America, and we can do most of that,” Trump said. “Anyone who outsources, moves or replaces American workers is not entitled to these benefits.”
As president, Trump attempted to cut the corporate tax rate from 35% to 15%, but ultimately settled on 21% after Republicans pressured him to scale back the cuts to allow more tax benefits for households.
A 15% corporate tax rate would be a big win for large U.S. companies, but it would also contribute to rising deficits. Large companies would end up paying significantly lower tax rates than smaller, private companies, where tax rates can be as high as 37%.
Trump’s proposal also directly contradicts Harris’ vision for corporate taxes. She has called for an increase in the corporate tax rate to 28%.
The push to cut the corporate tax also threatens to spark a major political dispute in Washington as Congress negotiates an extension of much of Trump’s 2017 tax law, which expires in 2025.
Government efficiency
Trump also promised to set up a task force to review federal spending, an idea recommended by Musk, the Tesla Inc. and SpaceX CEO. Trump said the commission would be “charged with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms.”
“Elon has agreed to lead this task force because he is not very busy,” Trump said of the appointment of Musk, the richest person in the world.
Musk called for a federal task force to ensure taxpayer money is spent effectively and offered himself a role in that initiative. The former president praised Musk as “the biggest cut-throat official.”
On Thursday, Trump also promised that if elected, he would eliminate 10 regulations for every new regulation, reinforcing his first-term promise to eliminate two regulations for every new regulation.
Business news
Both Trump and Harris are amplifying their economic messaging, seeking to appeal to swing-state voters and business leaders in an election campaign where the economy is a critical issue.
Polls show voters believe the U.S. economy is improving under President Joe Biden and Harris, but is still on track in the wrong directionPerceptions fueled by concerns about high prices weighing on American households.
A Bloomberg News/Morning Consult Survey conducted from 23 to 27 August In seven swing states that are likely to determine the outcome in November, likely voters showed they trusted Trump on the economy by 50% to 44% about Harris, and more than half believe they were better off financially under Trump than under Biden and Harris.
While Trump has promised lower interest rates, he has no direct control over setting rates. Congress has given that job to the Federal Reserve, which lowers or raises its benchmark interest rate to influence borrowing costs across the economy—from mortgages to Treasuries to auto loans.
The Federal Reserve has kept interest rates at more than two-decade-high levels since July 2023 to curb the highest inflation since the early 1980s. Central banks are expected to begin cutting rates later this month as price pressures continue to ease and the labor market cools.
Customs threat
Trump also defended his threats to impose tariffs on both US opponents and allies if he returns to power, calling it a “pro-American trade policy that uses tariffs to boost manufacturing here.”
The former president has brought up the idea to finance some income tax cuts by raising tariffs. He has promised to impose a general tariff of 10% on all imports and 60% on Chinese goods if he wins the election. However, many economists believe that Trump’s proposed tariffs would fuel inflation again.
Trump said he would declare a national energy emergency to boost domestic production and quickly approve more oil and gas production – measures he said would help bring down high prices. Trump also called the policy necessary for emerging industries like artificial intelligence and to keep the U.S. competitive with China.
“Artificial intelligence urgently needs electricity,” Trump said.
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