Go to ...

The Newspapers

Gathering and spreading news from various Russian Newspapers

The Newspapers on Google+The Newspapers on LinkedInRSS Feed

Sunday, December 4, 2016

Trump wants to force America to live within its means


“Trump does not want to burden America insane spending, he doesn’t want to waste time and energy just for the sake of maintaining the image of a superpower”. With these words the opinion of experts concerning the economic program of the candidate in US presidents from Republicans. If trump will be the next leader of the United States, the American role in the world economy is going to change.

The economic program of the Donald trump proposes massive tax cuts for business and middle class simultaneously with large-scale optimization of government spending. To compensate for the damage from the reduction of the tax burden should measures aimed at returning capital derived by U.S. corporations abroad, return to industry home. This, coupled with large-scale investment in infrastructure should, according to the plan of trump, lead to the growth of the economy and give jobs to Americans.

“Trump realizes that the “image project”, the US has become astronomically expensive, and if not stopped, it will soon burst,”

The trump, on the one hand, intends to increase spending on the us army, and on the other to reduce the military burden in NATO in favor of the allies, forcing them to pay more for their protection.

The economic program of the trump

So, trump offers to change the progressive income tax, leaving three categories instead of seven, plus to reduce the maximum tax from nearly 40% to 33%. He proposed to remove the progressive inheritance tax and to exempt from taxes the costs of raising children.

“We remove the reservation on tax-free status of income from investments and other (reservations), which was very good for wall street and people like me, but bad for American workers,” said trump, whose fortune is estimated at several billion dollars.

He also wants to facilitate life to American companies. “None of the American companies will not pay more than 15% of the income from the business in the form of taxes. In other words, we will reduce taxes from 35% to 15%,” said trump. It is embedded in his desire to return American business at home and thus encourage economic growth.

Trump also plans huge investments in infrastructure, while reducing the costs of refugees and migrants.

Currently U.S. corporations are holding abroad trillions of dollars from the profits to avoid taxation at the rate of 35%. Trump proposes to introduce a flat tax of 10%. This should encourage the return of manufacturing from overseas to the homeland. For example, to bring life back to Detroit, which became bankrupt and, in fact, a Ghost town.

Trump also promises to organize an energy revolution by reducing taxes and regulation, “which will bring new great wealth in our country.” In contrast to Clinton and Obama, which, according to him, “strangle” the industry and cut jobs.

Additional revenues from taxes and energy trump is going to spend on the American army. The members of NATO should assume more expenses and the savings America spend on themselves. “We will achieve from the allies that they honestly pay their share for the protection that we provide. This will allow us to save billions of dollars to rebuild our country,” said trump.

With regard to international trade, trump is going to come out of global economic alliances, facilitate trade, and depriving America of industry and jobs. In particular, he promises to renegotiate the North American agreement on free trade area (NAFTA). Trump also does not support membership in the TRANS-Pacific partnership (TPP) with 11 major countries of the region, excluding China. According to him, for Clinton, which in words is also against the TPP, it is only an election ploy. “Just imagine how many jobs in the automotive industry (USA) will be lost if the TPP is adopted. It would be a disaster,” said trump.

“If America will do a “Batman costume”, it will be easier all the US, including

The economic approach trump makes different experts storm of both negative and positive emotions. But in the program, trump makes sense, like that of the Americans.

In particular, trump can start major infrastructure projects that will result in increased activity in the construction sector and reduce unemployment, says Anastasia Semenova from the OBR Forex. “For service-oriented American economy this may be a further incentive to accelerate the pace of GDP growth by the end of next year,” she said.

Tax policy to reduce the burden on consumers, potentially also can have a positive impact on the economy, albeit with a delayed effect. “As the United States live in support of the consumer sector, rising incomes may mean increasing their costs with a subsequent increase in retail sales and a surge in activity in the services sector. As a result, the reduction in the tax burden on consumers and the growth of social spending can bring increased tax revenues to the state budget is already out of the corporate sector,” says Semenov.

With regard to monetary policy, the presidency, trump will mean a change of course the fed will increase the chances of a rate hike more rapidly. This may initially lead to a strengthening of the dollar, lower inflation and a slight fall in business activity in the corporate sector, experts say.

Peter Pushkarev from TeleTrade believes that Trump is the power to transform US from losing the influence of the Empire, which is a parasite on the body of the world economy, “just” a highly developed economy that is increasingly self-involved and gradually learn to live at their own expense.

As the United States controls the entire planet,”trump does not want to burden America insane spending, he doesn’t want to waste time and energy just for the sake of maintaining the image of a superpower, which is obliged to control everything,” – said Pushkarev. According to him, the US “played in Batman” both militarily and economically, but “they are no longer able to solve the real problems, but rather exacerbate them.” “If America will do a “Batman costume”, it will be easier all the US including. And then America will become a real superpower that will respect, working with her on a mutually beneficial basis,” – said the source.

In his opinion, trump realizes that the “image project” the USA has already become astronomically expensive, and if not stopped, it will soon burst. “The cost of strengthening spheres of influence are huge. New “unions and the sword screamed” like TRANS-Pacific or TRANS-Atlantic partnership, “bombast” for the sake of raising money for the needs of “the father of world democracy”, the pressure on allies and the demands of the victims for the “common” good are taking an unprecedented sizes – said Pushkarev. – Trump understands that those efforts were futile, sunset not far off, and if you continue in the same spirit, the national debt will be 19 trillion and 50 trillion, then 100 trillion, that is more money is meaningless goes out the window”.

The economic program aims to trump it all stop. “He wants to make America more independent from the concept of a superpower is to begin to live within its means, and at the same time reduce taxes for those businesses that are able to be more profitable and to really feed America is owed “them” money,” – said the expert of TeleTrade.

The essence of the program is to help the middle class to become rich, and already rich will create jobs for the poor and pay taxes to the poor. This fits well with the American philosophy, indicates Pushkarev.

Some items its promises trump will not be able to perform

However, critics point to the risks of the drastic steps proposed by trump. Besides, not the fact that, even if he becomes President, he will fulfill all our plans.

A sharp decline in tax risks for the budget and growing national debt, if something doesn’t go according to plan. “If big business does not want to return to the U.S. production derived even under Ronald Reagan, forecasts, implying losses for the budget in the amount of 12-15 trillion dollars, will find realistic. Moreover, even success in the “repatriation” of corporations can result in serious problems for the economy: the inevitable rise of the cost of American goods in the background clotting of relationships with key external partners will lead to a drop in demand for manufactured in the United States products in foreign markets”, – said the newspaper VIEW managing partner of Kirikov Group Daniil Kirikov.

In the campaign headquarters trump believe that serious tax cuts will dramatically increase their collection rates. But trump’s opponents disagree and claim that the tax plan of the Republicans will add US to the 10 trillion debt over the next 10 years.

Moody’s also previously criticized the economic statements trump, believing that they are a threat to the U.S. economy: will you experience a long recession, increase unemployment, decrease the amount of direct investment. While the program of the candidate in US presidents from Democrats Hillary Clinton, according to experts of the Agency will cause economic growth and create millions of jobs.

Charges trump populism is justified, since some items of his promises, he just is not able to perform. According to the Constitution, the US President has authority in the areas of Finance, it can prepare a budget, but takes its Congress. And to push through Congress a proposal Trump will be extremely difficult.

“Does not the fact that Congress’s support for new tax policies. This also applies to the other items on his economic program. There is a large gap between what he says and what he wants or can do, if will take the presidency. All this is extremely difficult to assess its programs,” – says the newspaper VIEW first Vice-President of “Russian club of financial Directors” Tamara Kasyanova.

Related posts:
"The Ministry of Finance: the exchange rate of the ruble will support at low oil prices "
The government has decided to ban Internet calls using Skype and Viber
Turkish fruits and vegetables return to Russian shops in autumn
The Central Bank will set a limit on the number of loans one person

Recommended

More Stories From Economy