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The number of income tax brackets will fall from seven to three, with rates for those in the higher brackets marginally reduced, and abolished entirely for the lowest earners. Corporate taxes will be scaled down by half, though certain exemptions that are currently available will disappear.
Costs such as social security, Medicare and military defence will remain untouched, but certain domestic programmes will be dissolved, notably those associated with the Department of Education and the Environmental Protection Agency.
Free trade agreements NAFTA and the Trans-Pacific Partnership will be renegotiated or dismantled. Far more stringent tariffs will be exerted upon Mexico and China unless they comply with Trump’s terms, with a view to boosting domestic manufacturing.
Until recently, Trump’s position was that the minimum wage would remain unchanged, helping companies compete with overseas opportunities. Now, he intends to defer the choice to state governments. Overall wages will benefit from an economic plan he claims encourages growth.
A number of financial reforms implemented by Obama will be annulled, including and primarily Dodd-Frank, a regulatory law which forces banks to reduce their reliance on debt for funding
Capital gains will be taxed at much higher rates, surcharges will be enforced for the highest earners, and corporate taxes will be restructured to close loopholes. Clinton’s plan will see very little change to 95% of taxpayers.
New long-term programmes are set to be implemented, which will facilitate improved infrastructure, paid family leave, college tuition relief and expanded healthcare coverage. Entitlement costs – Medicare, social security and so on – will be protected.
Free trade agreements such as the Trans-Pacific Partnership may be dismantled, though it’s more likely they will simply be renegotiated on a case-by-case basis. Trade laws will be more strictly enforced and trade violations countered with the appointment of a chief trade prosecutor.
Minimum wage will be raised from its current level of $7.25 to $12, if not higher still, through state efforts. Workers will also have more chance to share in corporate profits.
New regulations will be brought into force to curtail the big banks’ risk-taking, including fees for high-liability institutions, increased accountability for senior bankers and rules to prohibit certain investment activities.