Trump: Tax Reform Will Be ‘Rocket Fuel’ For US Economy
WASHINGTON — President Donald Trump spoke to a large group of manufacturers Friday and pitched his proposed tax reform as “rocket fuel” for the American economy.
“Under my administration, the era of economic surrender is over – and the rebirth of American industry has begun,” Trump said in his remarks to the National Association of Manufacturers (NAM).
The While House unveiled a tax framework this week that would reduce the amount of individual tax brackets, cut the corporate rate, increase the standard deduction and expand child tax credits. “The biggest ever in our country,” Trump called the plan.
“President Donald Trump has delivered on his commitment to put the full weight of the White House behind bold tax reform. Now is the time to think long term and act boldly. Our future depends on it, ” NAM president and CEO Jay Timmons said in a statement.
The push for tax reform comes after repeated failures on behalf of Republicans to repeal Obamacare, and Treasury Secretary Steven Mnuchin said recently that tax cuts are “on track” to occur by the end of the year.
“For the majority of American manufactures that file taxes as sole-proprietors, S corporations or partnerships, we will cap your top tax rate a maximum of 25 percent. This will be the lowest top marginal income tax rate for small and medium-sized business in more than 80 years – this huge tax cut will be rocket fuel for our economy,” Trump said at his Friday speech.
The White House’s tax framework will allow companies for the next five years to fully write off the cost of new equipment in the year it is purchased. “That means more production, more investment, and more jobs,” Trump continued.
The president recently received good economic news as second quarter growth is projected to be at 3.1 percent, higher than the administration’s 3 percent goal.
NAM’s president Timmons said Friday that manufacturers “have never been as optimistic” as they are currently.
He said almost “90 percent” of manufacturers in his organization report a positive outlook for their company. “Compare that to last year’s three quarter average of just under 60 percent,” Timmons added.
Trump campaigned on increasing American manufacturing via trade deal negotiations, reduced regulations, and tax cuts. “Made in the USA is a symbol of unrivaled excellence,” the president said Friday.