Ibragim Satvaldy | 02.11.2024
Donald Trump’s Economic Strategies: Past Presidency vs 2024 Proposals
As the 2024 presidential race gets underway, the former president's economic plan has been in the spotlight as he attempts to regain the White House. Another way to contextualize his 2024 economic policy proposals is as simply more of the same from his presidency: lower taxes, deregulation, and protectionist trade measures.
In 2017, Trump finally achieved his most significant economic success, the Tax Cuts and Job Act (TCJA), that lowered the corporate tax rate from 35 percent to 21 percent while cutting individual income tax rates. It was based on providing a business-friendly atmosphere where businesses in the end would emerge with higher investments, corporate growth, and increased pay. Furthermore, the TCJA doubled the amount of the standard deduction while repealing personal exemptions such that millions of taxpayers came out ahead and millions ended up with diminished benefits, especially in high-tax states where the SALT (States and Local Tax) deduction has been limited.
In 2024, Trump wants to make TCJA cuts permanent, but expand them by further lowering corporate tax rate to 15%. This is expected to increase GDP by approximately 0.8% in the long run, but it will also add some $2.5 trillion to national debt over 10 years, which, from the fiscal perspective, looks quite irresponsible.
Deregulation is a core feature of Trump's campaign and his presidency, especially on energy and finance. Trump repealed many environmental regulations to boost domestic oil, gas, and coal production; he cited less regulatory overhead would result in economic expansion. This was received generally positively from energy sectors, but less than warmly by environmental activists.
Another likely component of his platform in 2024 is Trump's deregulatory agenda, including proposals to rescind green energy projects designed under the IRA-a position that fits nicely with his position that reducing government outlays, including on renewables, helps restore sound fiscal policy. Economists warn, however, this will make it harder to transition to renewable energy, which many believe is important for a long-term climate-resilient economy.
The trade policies under Trump, particularly the tariffs, have been polarizing. He imposed tariffs on over $360 million worth of Chinese imports, citing protection from unfair competition against American industries. While such tariffs created a lot of revenue, they also lifted costs to American consumers and roiled relations with key trading partners.
Trump has also vowed to impose tariffs on China in 2024 to save US jobs and bring good manufacturing jobs back to America. Such actions would reduce dependence on overseas supply chains and reinforce the national economy accordingly. Economists warn, however, that fresh tariffs would mean higher prices for consumers, especially now when inflation is increasing. It also may further provoke tariff and trade tensions, perhaps impacting exports and, in particular, might dampen agriculture and manufacturing exports.
The poll indicates that a significant number of voters give Trump high marks for low taxes and a pro-business approach, but worry about the national debt and inflation. Trump's agenda is far more economically growth-oriented, in contrast to Biden's, who was looking for far more regulatory handcuffs on the economy, huge spending by the federal government on infrastructure and other programs, as well as climate change mitigation. It leaves voters with a choice: either the debt-heavy but growth-inspired vision from Trump or another alternative vision that perhaps fits their taste, such as sustainable development and wealth redistribution.
It seems like Donald Trump stays faithful to his economic policies aimed at growth and economic freedom, and is more palatable to voters with key issues that include cuts in taxes, deregulation, protectionist trade policies, and dependence on fossil fuels. However, long-term effects of these policies on debt, green sustainability, and consumer prices remain at the heart of debates. In the 2024 election, economic strategy will play a critical role in voters’ decision-making, underscoring the need for a balanced approach to growth, debt management and global competitiveness.
In 2017, Trump finally achieved his most significant economic success, the Tax Cuts and Job Act (TCJA), that lowered the corporate tax rate from 35 percent to 21 percent while cutting individual income tax rates. It was based on providing a business-friendly atmosphere where businesses in the end would emerge with higher investments, corporate growth, and increased pay. Furthermore, the TCJA doubled the amount of the standard deduction while repealing personal exemptions such that millions of taxpayers came out ahead and millions ended up with diminished benefits, especially in high-tax states where the SALT (States and Local Tax) deduction has been limited.
In 2024, Trump wants to make TCJA cuts permanent, but expand them by further lowering corporate tax rate to 15%. This is expected to increase GDP by approximately 0.8% in the long run, but it will also add some $2.5 trillion to national debt over 10 years, which, from the fiscal perspective, looks quite irresponsible.
Deregulation is a core feature of Trump's campaign and his presidency, especially on energy and finance. Trump repealed many environmental regulations to boost domestic oil, gas, and coal production; he cited less regulatory overhead would result in economic expansion. This was received generally positively from energy sectors, but less than warmly by environmental activists.
Another likely component of his platform in 2024 is Trump's deregulatory agenda, including proposals to rescind green energy projects designed under the IRA-a position that fits nicely with his position that reducing government outlays, including on renewables, helps restore sound fiscal policy. Economists warn, however, this will make it harder to transition to renewable energy, which many believe is important for a long-term climate-resilient economy.
The trade policies under Trump, particularly the tariffs, have been polarizing. He imposed tariffs on over $360 million worth of Chinese imports, citing protection from unfair competition against American industries. While such tariffs created a lot of revenue, they also lifted costs to American consumers and roiled relations with key trading partners.
Trump has also vowed to impose tariffs on China in 2024 to save US jobs and bring good manufacturing jobs back to America. Such actions would reduce dependence on overseas supply chains and reinforce the national economy accordingly. Economists warn, however, that fresh tariffs would mean higher prices for consumers, especially now when inflation is increasing. It also may further provoke tariff and trade tensions, perhaps impacting exports and, in particular, might dampen agriculture and manufacturing exports.
The poll indicates that a significant number of voters give Trump high marks for low taxes and a pro-business approach, but worry about the national debt and inflation. Trump's agenda is far more economically growth-oriented, in contrast to Biden's, who was looking for far more regulatory handcuffs on the economy, huge spending by the federal government on infrastructure and other programs, as well as climate change mitigation. It leaves voters with a choice: either the debt-heavy but growth-inspired vision from Trump or another alternative vision that perhaps fits their taste, such as sustainable development and wealth redistribution.
It seems like Donald Trump stays faithful to his economic policies aimed at growth and economic freedom, and is more palatable to voters with key issues that include cuts in taxes, deregulation, protectionist trade policies, and dependence on fossil fuels. However, long-term effects of these policies on debt, green sustainability, and consumer prices remain at the heart of debates. In the 2024 election, economic strategy will play a critical role in voters’ decision-making, underscoring the need for a balanced approach to growth, debt management and global competitiveness.
