Donald Trump's economic plan will "significantly increase America's real GDP growth rate" – resulting in trillions of dollars of additional revenues, according to a new study authored by investor Wilbur Ross and Peter Navarro, a top economist at the University of California.
“When evaluated as a single integrated whole, the Trump plan is revenue neutral and fiscally conservative," Ross and Navarro write in the study.
Ross, one of the nation’s most respected private equity investors, and Navarro serve as senior economic policy advisers for Trump’s campaign.
"It grows the economy much faster than Hillary Clinton's plan to raise taxes, increase regulation, stifle our energy sector, and perpetuate chronic trade deficits," the study finds.
Meanwhile, Trump’s economic plan “proposes tax cuts, reduced regulation, lower energy costs, and eliminating America’s chronic trade deficit,” Ross-Navarro say.
The authors conclude that “Hillary Clinton’s economic plan will inhibit growth.”
Hillary Clinton “proposes higher taxes, more regulation, and further restrictions on fossil fuels that will significantly raise energy and electricity costs,” the report states.
“Clinton will also perpetuate trade policies and trade deals she has
helped put in place that have led to chronic trade deficits and reduced economic growth.”
The economists write that Trump's reforms in trade, regulations and energy would result in revenue gains of $2.374 trillion, making the overall Trump plan "revenue neutral," while dramatically spurring economic growth.
The Ross-Navarro study directly counters a Tax Foundation report the authors say is "incomplete and misleading"
The Tax Foundation claimed that Trump’s policies will lead to a $2.6 trillion revenue shortfall over the next 10 years. Ross-Navarro responds that “the Tax Foundation does not score other elements of the Trump economic plan that are growth-inducing and therefore revenue-generating.”
Trump's plan to grow GDP, according to Ross and Navarro:
- Reduce the current regulatory burden by a minimum of 10 percent or $200 billion annually.
- Attack regulations that inhibit hiring. No. 1: The Environmental Protection Agency’s Clean Power Plan, which forces investment in renewable energy at the expense of coal and natural gas, thereby raising electricity rates; No. 2: The Department of Interior’s moratorium on coal mining permits.
- Lift restrictions on all sources of American energy.
- Use tax reforms is to realign corporate incentives and thereby encourage more onshoring and reshoring of investment while discouraging offshoring.
- Use the Treasury Department to brand any country than manipulates its currency a “currency manipulator.” This will allow the US to impose defensive and countervailing tariffs if the currency manipulation does not cease.
- A Trump Administration will not tolerate cheating by any nation. If America’s trading partners continue to cheat, a President Trump will use all available means to defend American workers and American manufacturing facilities from such cheating, including tariffs.
- Renegotiate every bad trade deal according to the principles of the Trump Trade Doctrine, i.e., any deal must increase the GDP growth rate, decrease the trade deficit, and strengthen the US manufacturing base.
- Trump will also insist that China relax its numerous non-tariff barriers now blocking US exports across a wide range of products, including autos, agricultural commodities, fertilizers, and telecommunications equipment.
An investor and businessman who made his billions advising bankruptcies and restructuring flailing companies, Ross was No. 20 in Newsmax's 100 Most Influential Business Leaders in America.
Ross is a force in the steel, coal, telecommunications, foreign investments, and textiles industries. He spent 25 years with Rothschild Inc.'s bankruptcy practice and then founded investment firm WL Ross in 2000. It was acquired by Invesco in 2006. He has spent the recent years turning around troubled banks, first the Bank of Ireland and then the Bank of Cyprus.
Ross successfully bet on the Irish banking system when it was on the ropes. Ross is known for restructuring failed companies in industries such as steel, coal, telecommunications, foreign investment and textiles. As of June 2015, Forbes listed Ross’ net worth at $3 billion.
Ross, who specializes in leveraged buyouts and distressed businesses, leads a group of investors who last year poured 1.3 billion euros ($1.47 billion), into Eurobank Ergasias, the third-largest bank in Greece, the New York Times said.
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