What new proposals did Trump make during his economic speech?

[September 06, 2024]  By Gram Slattery and Helen Coster

NEW YORK (Reuters) - Republican presidential candidate Donald Trump laid out his economic vision for the country on Thursday during a speech at the New York Economic Club.

Here are the new proposals Trump outlined:

SOVEREIGN WEALTH FUND

Trump said if he is elected he would create a sovereign wealth fund to invest in "great national endeavors," including major infrastructure projects such as highways and airports.

He said the fund would be created "through tariffs and other intelligent things" but gave no details.

TAX CUTS FOR DOMESTIC PRODUCERS

Trump pledged to reduce the corporate tax rate from 21% to 15% for companies that make their products in the U.S.

While he had already said he wanted to cut the corporate tax rate to 15%, he had not previously tied that lower rate to keeping manufacturing inside the country.

Trump slashed the corporate tax rate to 21% from 35% during his 2017-2021 presidency and in June he vowed to cut it further.

He repeated his proposal to eliminate taxes on income from tips, an idea he first floated in June to appeal to service workers. Current law requires employees to report their tips as income.

ELON MUSK AS EFFICIENCY CZAR

Trump said he would set up an independent government efficiency panel headed by billionaire supporter Elon Musk to root out waste in the federal government. He did not detail how the body would function but said it would develop a plan to root out "fraud and improper payments" within six months of being formed.

The idea is not novel. Other politicians have proposed similar investigative bodies, and Republican President Ronald Reagan set up the Grace Commission to do the same thing during his 1981-89 presidency. Many agencies are already dedicated to investigating fraud and inefficiency within the federal government, including the Government Accountability Office and dozens of separate inspectors general.

ENERGY EMERGENCY

Trump pledged to issue a national emergency declaration to boost domestic energy supply. He said he would use it to eliminate bureaucratic hurdles holding up new energy projects.

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

Presidents can use emergency declarations to invoke a suite of special powers, though attempts to help energy companies skirt regulators would likely be challenged in the courts and in Congress.

BANNING MORTGAGES FOR MIGRANTS LIVING IN THE U.S. ILLEGALLY

Trump said he would ban mortgages for migrants living illegally in California, after claiming without evidence that they were driving up housing costs. He did not provide specifics on how he would enact such a ban and did not say whether the ban would apply beyond California. Banks can legally provide mortgages to undocumented migrants, but do so infrequently.

HOUSING AFFORDABILITY

Trump pledged to open up portions of federal land for large-scale housing construction, with zones that will be "ultra low-tax and ultra low-regulation."

While he had previously said he would open federal lands to new housing construction, this appeared to be the first time he pledged to create a special tax and regulatory regime to draw homebuilders to those areas.

Trump has previously spoken against proposals to loosen local zoning restrictions that prevent apartments, duplexes and other forms of affordable housing from being built in neighborhoods reserved for single family houses.

The Republican Party's platform calls for boosting home ownership through tax breaks and eliminating regulations, though it does not outline specifics.

(Reporting by Gram Slattery in Washington D.C. and Helen Coster in New York, editing by Deepa Babington)

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