Donald Trump to Manufacturers: Tax Reform ‘Will Be Rocket Fuel for Our Economy’

The Associated Press
The Associated Press

WASHINGTON, D.C. — President Donald Trump addressed a room full of manufacturing industry leaders in Washington, DC, on Friday with the promise of tax reform and tax cuts that will propel the American economy like “rocket fuel.”

“We are all here today for the same reason, because we believe in that beautiful, beautiful phrase, that hasn’t been used so much over the last three decades, ‘Made in the USA’,” said Trump after lauding the workers who sat on the stage.

“Under my Administration, the era of economic surrender is over – and the rebirth of American Industry is beginning,” declared Trump. “America is winning again and America is being d again.”

Trump spoke of the goal to keep jobs in America, bring jobs to America, and create real prosperity for America. He said that is the reason they have lifted restrictions on American energy and that it was done immediately, leading to tens of thousands of jobs. He said they are fighting to create “fair and reciprocal trade.”

“We are cutting regulations at a pace that has not even been thought of before,” said Trump who said the massive volume of regulations undermines the ability of businesses to succeed. He said some regulation is needed, but not the level that has been in place.

The president spoke of the 3.1 percent GDP number for the second quarter that was revealed on Friday morning. “Manufacturing confidence is at an all-time high,” he added.

He heralded the opportunity to pass tax reform that is pro-growth, pro-jobs, pro-worker, pro-family, and pro-America.

Trump told the crowd that he has been working with Congress for months on a tax plan.

On Wednesday, Trump unveiled a more expansive framework for tax reform than he had previously. “This is the right time. Democrats and Republicans in Congress should come together to deliver this giant win for the American people and begin the middle-class miracle once again,” he told a crowd at the Indiana state fairgrounds Farm Bureau Building. The plan boasts a maximum 20 percent corporate tax rate, down from 35 percent, and three tax brackets for individuals and families.

During Friday’s event, he recounted the details of his tax plan, citing the non-taxable income threshold and three tax rates. He said they would increase the child tax credit, an issue that has been championed by his daughter and advisor Ivanka Trump. He said they will close loopholes and simplifying the code. He reminded the crowd that they will be ending the estate “death” tax.

Trump honed in on the goal of providing more tax relief for the middle class, for everyday working people. “We will protect our manufacturers and our workers,” he said. He said the business tax rate is the least competitive rate there is around the world and this is driving companies out of the U.S.

“It is time to go from dead last to pretty much the front of the pack,” said Trump to applause from the crowd. He said they will cut the business tax rate from 35 percent to 20 percent and that this will pour jobs into our country for the benefit of the American worker. “When companies stay in America and move to America, it is our wonderful workers who reap the rewards,” said Trump.

“For the majority of American manufacturers that file taxes as sole-proprietors, S corporations or partnerships, we will cap your top tax rate at a maximum of 25 percent,” said Trump. “This will be the lowest top marginal income tax rate for small and medium-sized businesses in more than 80 years and it will be rocket fuel for our economy.”

He then highlighted immediate expensing, “To further help our companies to compete, for the next five years our framework will allow you to fully write off the cost of new equipment in the year you buy it.” He continued, “That means more production, more investment, and more jobs.”

Trump said that the framework “encourages America companies to bring back trillions of dollars in wealth from overseas.” He said his plan will reverse that. Trump said he has been following for years the issue of trillions of dollars parked overseas and agreement from Republicans and Democrats that they want to see that money come home.

“When we purchase products made in America, fashioned by our fellow citizens, we renew the bonds of national loyalty that link us all together as one,” said Trump. He spoke of the Americans who work at these workers at manufacturing businesses, who make products that build families, communities, and “this nation that we all love so much.”

Congressional Republicans announced their framework as well on Wednesday, which they have worked on with the Trump Administration. Senate Majority Leader Mitch McConnell told reporters at a Tuesday press briefing that they were putting healthcare reform on the back burner as they did not have the votes to pass the most recent attempt, Graham-Cassidy, and would move on to tax reform. On Wednesday they released the framework of their plan.

“We want every American to know the dignity of work, the pride, the pride, the beautiful pride, getting a paycheck, and the satisfaction of being told, that was a job well done,” Trump told the manufacturing crowd of about 250 as executives, board presidents, and others from small, medium and large manufacturers. He spoke of America’s love for the American flag.

“This can be remembered as the moment we took control of our destiny and chose a future of American patriotism, prosperity, and pride,” said the president. “With your help and your voice we will bring back our jobs, we will bring back our wealth and for every citizen across this land, we will bring back our great American dream.”

Follow Michelle Moons on Twitter @MichelleDiana 


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