A new action under consideration by President Trump has Washington Bureaucrats worried and running for cover. At a meeting with American business leaders and union officials on Monday, President Trump outlined his intention to cut federal business regulations to the bone. The President said he believes he can cut regulations by 75 percent or “maybe more,” greatly reducing the costs to American businesses.
The meeting which was held at the White House brought 10 senior executives together to discuss ways the administration could jump start the economy which has been all but stalled for the last eight years. The President repeated his campaign pledges to roll back corporate rules, arguing that they have “gotten out of control.” Mr. Trump told the group; “We’re going to be cutting regulation massively,” but the rules will be “just as protective of the people,” President Trump told reporters that the meeting included Tesla Motors CEO Elon Musk and Under Armour CEO Kevin Plank.
Meanwhile, Democrats and other groups have expressed concern about the President’s plans to roll back the highly restrictive regulations that were put in place by the Obama administration, many of which are aimed solely at the environment and the still much debated Global Warming initiative and would involve pulling out of the Paris climate accords in addition to other pet projects of the last president.
President Trump also told reporters that he plans to follow up on his campaign promises to cut taxes for businesses, saying he aims to get the business rate “down to anywhere from 15 to 20 percent” from the current 35 percent. He also said he wants to reward companies that manufacture in the U.S. and impose border taxes on products that American companies make abroad and then return them to the U.S. for sale.
As he did on the campaign trail, Trump said his plans to push American manufacturing and renegotiate trade deals. “What we want to do is bring manufacturing back to our country,” Trump said. “That doesn’t mean we don’t trade because we do trade. We want to make our products here.”
After the meeting, Dow Chemical CEO Andrew Liveris said the executives will come back in 30 days with suggested actions to boost American manufacturing. President Trump’s administration has already negotiated a deal with United Technologies that saved 1100 jobs in it’s Carrier unit in Indiana from being moved to Mexico. He has also targeted some companies, particularly automakers, for making parts abroad. Trump has pledged a tax on those products that are sold in the U.S.
President Trump also confirmed his intention to “massively” cut taxes for the middle class. Some independent analyses have concluded that such actions would create massive new federal debt, but other experts say the as in the 1980’s, such reduction in taxes ultimately leads to increased income to the government due to the effect of economic growth.
In addition to cutting taxes and regulations, Mr. Trump also has frozen federal hiring. After all, if you are going to have less regulations to enforce and less taxes to collect, you won’t need as many people to do the job. Some members of the new Administration are forecasting that the federal work force could be reduced by as much as 30 percent in the next 48 months.