Trump says he will tap Musk to lead government efficiency commission if
elected
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[September 06, 2024]
By Helen Coster and Gram Slattery
NEW YORK (Reuters) - Republican presidential candidate Donald Trump said
on Thursday he would establish a government efficiency commission headed
by billionaire supporter Elon Musk if he wins the Nov. 5 election,
during a wide-ranging speech in which he laid out his economic vision
for the country.
Speaking at the New York Economic Club, the former president also
pledged to slash corporate tax rates for companies that manufacture
domestically, establish "low-tax" zones on federal lands where
construction companies would be encouraged to build new homes, and start
a sovereign wealth fund.
Trump had been discussing the idea of an efficiency commission with
aides for weeks, people with knowledge of those conversations have told
Reuters. His Thursday speech, however, was the first time he publicly
endorsed the idea.
It was also the first time Trump said Musk had agreed to head the body.
Trump did not detail how such a commission would operate, besides saying
it would develop a plan to eliminate "fraud and improper payments"
within six months of being formed.
"I will create a government efficiency commission tasked with conducting
a complete financial and performance audit of the entire federal
government," Trump told an audience that included Trump's former
treasury secretary, Steve Mnuchin, and financiers Scott Bessent and John
Paulson.
Musk said on an Aug. 19 podcast that he had held conversations with the
former president about the commission and that he would be interested in
serving on it.
"I look forward to serving America if the opportunity arises," the Tesla
chief wrote on X on Thursday. "No pay, no title, no recognition is
needed."
Politicians have called for separate efficiency commissions before.
Republican President Ronald Reagan established a similar body during his
1981-1989 term called the Grace Commission.
Trump's proposal drew a rebuke from Everett Kelley, president of the
American Federation of Government Employees, a union representing about
750,000 federal workers. He accused Trump and Musk of wanting to gut the
nonpartisan civil service and replace fired workers with allies.
"There's nothing efficient about that," Kelley told Reuters.
Asked by Reuters about Musk heading the proposed government efficiency
panel, Paulson said it was "great to have him as an ally. He's a
terrific businessman, and I think the government could become much, much
more efficient."
CORPORATE TAX CUTS, HOUSING ON FEDERAL LANDS
During his speech, Trump reiterated his plan to cut the corporate tax
rate to 15% from 21%, but only for companies that manufacture
domestically. He also said he would open up federal land to homebuilding
in a bid to drive down housing costs. These new housing zones would be
"low-tax" and "low-regulation," Trump said, without elaborating.
While Trump had already said he wanted to cut the corporate rate to 15%,
he had not previously tied that rate to keeping manufacturing inside the
country.
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Republican presidential nominee and former U.S. President Donald
Trump speaks at the Economic Club of New York in New York City, U.S.
September 5, 2024. REUTERS/Brendan McDermid
Trump also called for creating a sovereign wealth fund, in part to
fund major infrastructure projects. He added that he would rescind
unspent funds related to the 2022 Inflation Reduction Act, one of
Biden's signature legislative accomplishments. And Trump said he
would "issue a national emergency declaration" in a bid to help new
energy projects more easily clear bureaucratic hurdles.
Trump said he would ban mortgages for migrants living illegally in
California, after asserting without evidence that they were driving
up housing costs. He did not provide specifics on how he would enact
such a ban. Banks can provide mortgages to migrants in the country
illegally, but do so infrequently.
Trump's housing affordability plan differs drastically from that of
Vice President Kamala Harris, the Democratic nominee, who has
proposed creating a $25,000 credit for first-time homebuyers.
Harris' plan has been criticized by Republicans and some economists
who say the credit will drive up housing prices. Trump's plan to
develop federal lands, on the other hand, could draw the ire of
environmentalists, and it is unclear how much housing demand there
would be in the rural areas where most federal land is located.
Responding to a question from the audience, Trump said he would
apply punitive economic sanctions to other countries only sparingly,
so as not to threaten the dollar's status as the global reserve
currency, a position at odds with his record during his time in
office.
During Trump's 2017-2021 term, sanctions were a go-to foreign policy
tool, and some advisers have advocated expanding sanctions against
Iran and Russia.
Harris policy adviser Brian Nelson said Trump's economic agenda
would "explode the national debt," while driving up inflation and
killing jobs.
Trump is seen as a more competent steward of the economy by more
voters. But his advantage over Harris on the issue is rapidly
eroding, surveys show. Trump had an 11-percentage-point advantage on
the economy in July, but that dropped to a 3-point lead in August,
Reuters/Ipsos polling showed.
Many economists believe the economic policies sketched out by Trump
on the campaign trail will lower growth and drive inflation higher.
But they also note that in order to implement much of his policy
agenda, Republicans need to retain control of the House of
Representatives and seize the Senate from Democrats.
(Reporting by Helen Coster in New York and Gram Slattery in
Washington; Additional reporting by Steve Holland, Tim Reid, Ann
Saphir, Costas Pitas, Lananh Nguyen, Lindsay Dunsmuir, Daniel Burns,
Rami Ayyub, Megan Davies, Michael Derby and Peter Henderson; Editing
by Ross Colvin and Jonathan Oatis)
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