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Home , Democrat Party (epithet), New York Daily News, Rich Lowry, The America We Deserve, Time to Get Tough

2016 Presidential White Paper SERIES Paper #11 donald November 3, 2015

INTRODUCTION of New York7 and planned to challenge Pat Buchanan for the Reform Party presiden- is a career businessman tial nomination, but eventually withdrew and real estate developer whose personal calling the party a “total mess.”8 fortune from real estate and television has been valued by Forbes at $4.5 billion1, Trump registered as a Democrat in 2001, however Trump says his worth should and remained a Democrat for the next be valued in excess of $10 billion2, while eight years. He also was an outspoken Photo credit: Gage Skidmore Bloomberg’s analysis pegged it at $2.9 bil- critic of President George W. Bush – even lion.3 Forbes gives Trump a score of 5 out urging Nancy Pelosi to impeach him9 – loopholes” that he claims would be reduced of 10 on its Self-Made Score, an indica- before rejoining the Republican Party in or eliminated.12 In addition, the Trump tion that at least some of his wealth was 2009.10 However, he took another leave tax proposal includes a one-time 10% inherited.4 Trump’s father was a of absence from the GOP in 2011 before repatriation tax on “…corporate cash held real estate developer who, according to the returning in April 2012.11 In both 2008 and overseas… followed by an end to the defer- Washington Post, “…built an empire of some 2012 Trump hinted at possible presidential ral of taxes on corporate income earned 27,000 residential units… and was worth runs, but ultimately set his sights on the abroad.”13 Conservatives have generally nearly $300 million at his death in 1999.”5 2016 Republican presidential nomination. opposed efforts to repeal the deferment of taxes on corporate earnings generated Politically, Trump built numerous relation- overseas, while President Obama14 and ships with government officials in New the left-leaning Economic Policy Institute York. His first political registration was TAXES have argued that, “Ending deferral could as a member of the Republican Party, and The Club for Growth is committed to increase corporate tax revenue by over $50 he first appeared on the national political lower taxes – especially lower tax rates billion per year.”15 scene in 1988 at the Republican National – across the board. Lower taxes on work, Convention in support of then-presidential Donald Trump has been a frequent advo- savings, and investments lead to greater nominee George H. W. Bush. During an in- cate of higher taxes, and believes a flat tax, levels of these activities, thus encouraging terview at the convention, Trump rejected under which all Americans pay the same greater economic growth. the Republican label and, when asked why percentage, is the wrong approach.16 As a he was a Republican, said, “I have no idea,” As a presidential candidate, Donald Trump presidential candidate, Trump has reiter- adding, “I just believe in certain principles issued a tax reform proposal that is a far ated that he believes taxes should gradu- 6 17 of the Republican Party.” cry from the positions he’s historically ate upwards with income and he has taken on taxes. While his latest plan would advanced a proposal to double the amount In 1999, he joined the Independence Party significantly lower tax rates for individuals investment managers pay by removing the and businesses, questions remain about his lack of specificity on “…the deductions and

1 Forbes, 9/29/2015 12 DonaldJTrump.com, Tax Reform

2 Business Insider, 7/15/2015 7 CNN, 10/25/1999 13 DonaldJTrump.com, Tax Reform

3 , 7/28/2015 8 Tribune, 2/14/2000 14 Fortune, 2/5/2015

4 Ibid. 9 CNN, 10/15/2008 15 Economic Policy Institute, 3/31/2014

5 Washington Post, 7/22/2015 10 PolitiFact, 8/24/2015 16 , August 2015

6 Youtube, CNN Interview 11 Ibid. 17 Ibid. 2016 Presidential White Paper Series - Donald trump carried-interest exception.18 Moreover, as the Democrat Party, the Democrat Party the budget will balance itself. 36 Trump discussed in the Free Trade section of this left me.”27 also contends that he will “take the money paper, Trump’s frequent threats of high back” from China and Mexico, by taking tariffs would result in what would effec- jobs back from those countries.37 tively be a higher sales tax paid by Ameri- SPENDING can households and businesses.19 The Club for Growth is committed to In 1999, Donald Trump proposed the larg- reducing government spending. Less ENTITLEMENT REFORM est tax hike in history, a one-time wealth spending enhances economic growth by America’s major entitlement programs tax of 14.25% to be paid by high-net-worth enabling lower taxes and diminishing the are already insolvent. The Club for individuals.20 When it was pointed out to government’s economically inefficient al- him that it was unlikely for a business- Growth supports entitlement reforms that location of resources. person to maintain 14.25% of their wealth enable personal ownership of retirement and health care programs, benefit from in cash, Trump reasoned, “You’d sell off In campaign speeches, Donald Trump has 21 assets.” Even today he refuses to admit promised tremendous spending increases market returns, and diminish dependency that his plan was a mistake, proclaiming on infrastructure28 and the military.29 on government. instead that, “It was a great proposal,” and However, he fails to address, in con- Donald Trump’s most consistent position adding, that if circumstances were similar, crete terms, what projects his spending 22 on health care has been his support of a “I would do that all day long.” increases would fund, beyond building government-run, single-payer health care a border wall30 and a Veterans Hospital The wealth tax proposal was not the only system. When asked in September 2015 in .31 When asked about past instance of Trump supporting drastic if he still supports universal health care, those who claim Trump’s immigration tax increases. In 1991, Trump testified Trump responded, “I am going to take care plan would cost $400 to $600 billion and before a House budget subcommittee, of everybody. I don’t care if it costs me votes “…reduce real GDP by $1.6 trillion,” he claiming, “The fact is that 25% for high or not. Everybody’s going to be taken care of answered, “Well, first of all they’re wrong,” income people, … it should be raised sub- much better than they’re taken care of now.” but did not elaborate.32 Meanwhile, he has stantially…” 23 His one self-serving caveat Trump promised to “…make a deal with ex- offered few details on spending cuts, with was that by investing in real estate the tax isting hospitals to take care of people.” When the exception of promises to “cut out huge would be lowered.24 asked, “Who pays for it?”, Trump said, “The sections of the Department of Education”33 government’s gonna pay for it.”38 Trump passes off his terrible record on and to gut the Environmental Protec- taxation by insisting he has evolved much tion Agency,34 two departments with total During his time in the Reform Party, like President Reagan.25 It should be noted spending that reflects about two percent Trump left no doubt about his stance when that unlike President Reagan, Trump does of annual federal spending.35 Trump’s he proclaimed, “I love universal.”39 He then not adhere to the core philosophy of sup- more answer for balancing the further entrenched his position when he ply-side economics that drove Reagan’s tax budget and covering his proposed spend- wrote, “I’m a conservative on most issues policy.26 To this day Trump continues to ing seems to be his oft-repeated claim that but a liberal on this one [health care]…40 repeat the mantra that the rich should pay he will improve the economy so much that We must have universal healthcare.”41 proportionately more, an idea that directly Rather than backing away from this anti- conflicts with basic pro-growth principles. growth stance Trump recently defended Reagan also did not claim a personal evo- 27 A History of the U.S. Political System, his health care philosophy by arguing that lution, but famously said, “I didn’t leave Harris, 2009, p. 254 a government-run, single-payer system works well in Canada and Scotland and 28 Business Insider, 6/16/2015

29 , 9/16/2015 18 Bloomberg Business, 8/26/2015 30 USA Today, 9/23/2015 19 CNN, 7/28/2015 36 Daily Signal, 5/21/2015; CBS News, 31 Bloomberg, 8/27/2015 20 PolitiFact, 9/2/2015 10/13/2015 32 ABC “This Week” Transcript, 9/23/2015; 21 ABC News, 11/10/1999 37 Fox News, 5/21/2015; CBS News, NBC News, 8/19/2015 22 CNN, 8/6/2015 10/13/2015 33 Tea Party Convention 23 CSPAN, 11/21/1991 38 CBS News transcript, 9/27/2015 Speech, 1/19/2015; CNN, 10/1/2015 24 Ibid. 39 NBC News, 10/8/1999 34 CBS News, 9/23/2015 25 CNN, 9/1/2015 40 , 2000, p. 206 35 US Department of Education 2015 Budget; 26 Fox News, 8/12/2015 EPA FY 2015 Budget in Brief 41 The America We Deserve, 2000, p. 207

PAGE 2 2016 Presidential White Paper Series - Donald trump could’ve worked in the U.S. 42 growth in the marketplace. face financial retaliation from the gov- ernment.57 He has also expressed concern Despite his ongoing support for a single- Donald Trump has supported the abuse over CEO compensation calling it “a total payer health care system, Trump also of eminent domain laws. He voiced clear and complete joke.” 58 Finally, he recently claims he will “absolutely repeal and re- support for the U.S. Supreme Court’s 2005 complained that Rich Lowry of National 43 place Obamacare.” In its place he promis- Kelo ruling saying, “I happen to agree with Review should be disallowed from televi- 44 51 es “something terrific.” However, Trump it 100%.” In Kelo the high court ruled that sion appearances and fined by the FCC has yet to expand on his health care plan and property could be taken by the govern- for language Lowry used in praising the 45 how it would differ from Obamacare. ment and redistributed to another private performance of one of Trump’s opponents owner as long as it was deemed to be in the during a Republican debate.59 On Social Security, Medicare, and Medic- public’s best interest as determined by the 46 aid, Trump vows to keep them as is even government.52 as these programs move toward insol- vency. While he once called for raising the Trump was unsuccessful in 1994 in his FREE TRADE retirement age to 70, Trump said recently, effort to have of Bridgeport, CT use Free trade is a vital policy necessary for “…not anymore because now what I want eminent domain to condemn five busi- maximizing economic growth. In recent to do is take money back from other coun- nesses that were on land where Trump decades, America’s commitment to ex- tries that are killing us and I want to save wanted to build an amusement park.53 In Social Security. And we’re going to save it 1996, Donald Trump wanted a local agency panding trade has resulted in lower costs without increases.”47 in Atlantic City, to condemn for consumers, job growth, and higher a home, a restaurant, and a shop because levels of productivity and innovation. Trump further states, “It all does take care they were blocking plans for a parking area Donald Trump’s hostility towards free of itself if we could get the engine of this and lawn for his nearby casino. When the 48 trade is unmatched by any other major country going again.” Recent attempts by owners refused his offers he took them to presidential candidate, with the pos- Congressman Paul Ryan (WI-1) to reform court in an attempt to take their property by sible exception of Bernie Sanders. Trump entitlements were met with harsh criticism force. Had he been successful, the owners recently said, “We need fair trade, not from Trump who proclaimed, “The Demo- would have lost their properties and been free trade,”60 and his proposed policies crats are laughing at the stupidity of the compensated for millions of dollars less 49 are strongly protectionistic. At the core of Republicans and this Ryan plan.” Trump than what he eventually offered them.54 explained his position at the 2013 CPAC his trade policy is a 25% tariff on Chinese event, telling conservatives to leave entitle- In Scotland, several families living in imports and a 35% tax on American auto ments alone if they want to win elections.50 homes near a golf course planned by manufacturers who defy Trump’s order to Trump spent two years living under his produce vehicles in the .61 In threat of using Scotland’s power of com- 2011, he also advocated a blanket 20% tax REGULATION pulsory purchase orders to acquire their on all imports as well as a 15% penalty tax homes. While Trump has claimed he never on American companies participating in Excessive government regulation stymies made such an attempt, the local govern- outsourcing.62 Trump has called the North individual and business innovation neces- ment produced a 2009 letter from Trump’s American Free Trade Agreement “a disas- sary for strong economic expansion. The lawyers demanding exactly that.55 His ter,” and said, “We will either renegotiate it 63 Club for Growth supports less and more primary reason for obtaining the proper- or we will break it.” sensible government regulation as a criti- ties was simply to improve from It’s been estimated that Trump’s pro- his golf course.56 cal step toward increasing and posed tariff on Chinese imports alone will In other matters of government regula- cost Americans $117 billion per year,64 tion, Trump has threatened to force U.S. 42 Fox News GOP Debate, 8/6/2015 companies to manufacture domestically or 43 New York Daily News, 8/3/2015 57 Detroit News, 6/16/2015

44 Forbes, 7/31/2015 58 CBS News, 9/13/2015 51 Fox News, 7/19/05 45 Bloomberg, 7/30/2015 59 Washington Post, 9/23/2015 52 Institute for Justice, Kelo Eminent Domain 46 Daily Signal, 5/21/2015 60 CBS News 60 Minutes transcript, 9/27/2015 53 Washington Post, 8/19/2015; NY Times, 47 CBS News 60 Minutes transcript, 9/27/2015 6/3/1994 61 CNN, 7/28/2015

48 Fox News, November 2013 54 New York Times, 7/21/2014 62 , 2011, pg. 65

49 From the Desk of Donald Trump, 6/9/2011 55 STV News, 1/31/2011 63 CBS News 60 Minutes transcript, 9/27/2015

50 CPAC 2013, 3/15/2013 56 Guardian, 5/26/2010 64 U.S. Census Bureau, Foreign Trade, 2014

PAGE 3 2016 Presidential White Paper Series - Donald trump but Trump justifies his extreme brand Commission.”70 Trump believes school When comedian parodied of anti-growth protectionism as a neces- choice and competition would improve the Trump’s offer of $5 million for President sary step in fighting Chinese currency education of those receiving vouchers, as Obama’s birth certificate by offering the 65 manipulation. When challenged about well as the education of those choosing to same amount for documentation proving 71 whether his proposed tariff on cars would remain within the public school system. that Trump was not the child of an orang- ultimately drive up prices for Americans, utan, Trump sued him claiming a breach Trump explained, “…maybe a person will Concerning Common Core, the current of contract,77 but withdrew the suit two buy fewer cars over the course of a lifetime. nationwide education initiative built on months later.78 Who cares?”66 the foundation of the No Child Left Behind Act, Trump refers to it as a disaster.72 Spe- Just this year, Trump sued Palm The idea of restricting trade with China via cifically, he claims that a focus on federal Beach County because he felt the airport tariffs is nothing new, having been pro- education standards will always be inferior manager was intentionally influencing the posed in 2005 by Senator to state-driven education policy.73 FAA to direct planes over his mansion. He (D-NY), who received at least four Trump campaign donations, and by Senator requested $100 million in damages claim- (R-SC).67 Trump himself TORT REFORM ing the fumes and residue caused “direct has promoted his tariff plan for quite some physical damage” to his property.79 Trump time telling a crowd in 2011 how he would The American economy suffers from has been fighting the airport in court for attempt to get jobs back from China, “[It’s] excessive litigation which increases the more than 20 years, despite purchasing the so easy. I’d drop a 25% tax on China… cost of doing business and slows economic mansion long after the airport was built.80 Listen you motherf***ers, we’re going to growth. The Club for Growth supports tax you 25%.”68 major reforms to our tort system to re- While there are many more examples, store a more just and less costly balance in these three instances illustrate how Trump tort litigation. SCHOOL CHOICE has repeatedly engaged in frivolous, retaliatory litigation, and how he regularly Tort reform is an area where Donald The Club for Growth supports broad appears to abuse the legal system as a tool Trump has a proven record, and that school choice, including charter schools for publicity or political gain, as opposed to record is abysmal. As reported by the an instrument of legal remedy and relief. and voucher programs that create a com- Center for Public Integrity, Trump has petitive education market including pub- been directly involved in approximately lic, private, religious, and non-religious 100 federal lawsuits, as of 2011.74 This is schools. More competition in education not necessarily surprising given his long- POLITICAL FREE SPEECH will lead to higher quality and lower costs. standing role as a businessman, but the Maximizing prosperity requires sound contents of these lawsuits are indicative of government policies. When government Donald Trump has been consistent in an individual who has little interest in tort strays from these policies, citizens must be his support for school choice, including reform. vouchers, charter schools, and opportunity free to exercise their constitutional rights scholarships.69 In 2000, he compared the to petition and criticize those policies and In 2006 Trump sued a New York current educational system to a monopoly the politicians responsible for them. Times journalist for $5 billion because and argued that school choice would create Trump felt his reputation was harmed by healthy competition. He commented that Donald Trump believes the U. S. Supreme the public school system is similar to the the author’s alleged low-balling of Trump’s Court was wrong in their Citizens United 75 Bell Telephone of old, and, “It would set off net worth. The suit was dismissed and, ruling, which determined that individu- every antitrust alarm bell at the Depart- after an appeal from Trump, that dismissal als and corporations are free to donate as 81 ment of Justice and the Federal Trade was affirmed.76 they see fit to political action committees. As for caps on donations, Trump says, “A limit’s okay.”82 70 The America We Deserve, 2000, p. 83

71 Ibid. 77 , 2/11/2013 65 Fox News, The O’Reilly Factor, 8/24/2015 72 Washington Post, 9/16/2015 78 Law 360, 4/2/2013 66 CNN, 8/20/2015 73 Simpson College Speech, 4/8/2015 79 CNN, 1/13/2015 67 Washington Post, 7/29/2005 74 Center for Public Integrity, 5/5/2011 80 Trump: What’s the Deal? 7/3/1991 68 Trump Political Speech in Nevada, 4/28/2011 75 Bloomberg, 7/21/2015 81 Trump Campaign Rally in NH, 8/14/2015

69 The America We Deserve, 2000, p. 81 76 Ibid. 82 Trump Campaign Press Conference in NH,

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Despite these beliefs, Trump has heavily States,” 90 and expressed shock and disap- Arlen Specter and ex-Governor of involved himself in the world of political pointment over how John Kerry lost the Charlie Crist.100 finances over the years. However, when 2004 presidential election.91 Until his recent abandonment of asked if his giving to lobbyists and special 92 interests was part of the problem, Trump Trump rejoined the GOP in 2009, only to Democratic candidates, Trump’s top answered, “Absolutely. 100%. I was on the leave the party from 2011 to 2012, indicat- donation recipient was Charlie Rangel other side. They will do whatever I want, ing on his registration form that he wished (D-N.Y.),101 a politician found guilty of 93 up until you decide to run… It’s called play- to remain unaffiliated. 11 counts of ethics violations.102 ing the game. I was a businessman. I made Having spent the majority of the last Trump has defended his donation history, a fortune.”83 By his own admission he has decade as a registered Democrat, it comes arguing, “…I’ve helped Nancy Pelosi, I’ve hired many lobbyists and “knows them as little surprise that Trump’s political helped Reid. I’m a businessman.”103 In all.”84 However, Trump now says, “Our sys- contributions heavily favored Democratic return, Trump says, “They always treated tem is broken.” 85 When asked if he would candidates through the end of 2011, when me nicely.”104 seek more regulation he said, “I love the he suddenly cut off nearly all Democratic idea of campaign finance reform.”86 donations.94 Prior to this point, Trump On the topic of endorsements, Trump pub- had donated $497,690 to Republicans lically supported President George H. W. and $581,350 to Democrats over a 22 year Bush in 1988.105 In 2007, Trump expressed POLITICAL ACTIVITY & ENDORSEMENTS span.95 Among Trump’s frequent Repub- disappointment over John Kerry’s 2004 lican recipients were John McCain (AZ), loss to President George W. Bush, and not- Robust political activity is essential to Arlen Specter (PA), and the American ed that was a very talented producing a federal government that is Crossroads PAC. Since 2012, Trump gifted and capable leader who would probably be more respectful of free markets and pro- 106 the GOP another $463,450 over three the 2008 Democratic nominee. Hedging duces more pro-economic growth policies. years while only contributing $3,500 to his prediction, he also trumpeted then- The Club for Growth’s PAC has been active Democrats.96 Senator Obama as “a star” who had “really in some of the more central battles within done an amazing job.”107 the Republican Party nominating process In 2010, Trump donated to Sen. Harry In the end, Clinton failed to be nominated, in recent years, supporting pro-growth Reid (D-NV).97 and Trump, soon to be rejoining the candidates over pro-government ones. Trump gave donations to Ted Republican Party, endorsed Sen. John Mc- Donald Trump’s political affiliations have and Hillary Clinton.98 Cain in 2008. He clarified that he was not varied wildly over the years. In the late endorsing the ticket, and when asked if he Trump donated $50,000 to former 1990’s, Trump proclaimed the GOP was would’ve endorsed Hillary Clinton, said he Obama aide ’s mayoral 108 “just too crazy right,” and joined the Inde- preferred not to answer. 99 pendence Party of New York with the in- campaign. Most recently, Trump endorsed Mitt Rom- tent of running for president under the af- Trump has donated to anti-growth ney in 2012 before later accusing him of filiated Reform Party banner.87 From 2001 Republicans who later left the party, “choking.”109 to 2009, Trump registered as a Democrat88 including former Pennsylvania Senator and spoke out frequently against President George W. Bush, calling him “evil,”89 “the worst president in the history of the United 90 CNN, October 2007

91 Ibid. 100 Center for Responsive Politics, 2/17/2011 92 New York State Board of Elections, 101 Daily Caller, 6/3/2015 8/14/2015 9/15/2009 102 Washington Post, 11/16/2010 83 CNN, 7/22/2015 93 New York State Board of Elections, 12/21/2011 103 CNN, 6/28/2015 84 Trump Campaign Rally in NH, 8/14/2015 94 NPR, 7/28/2015 104 Ibid. 85 Huffington Post, 8/20/2015 95 PolitiFact, 7/9/2015 105 CNN, August 1988 86 Trump Campaign Rally in NH, 8/14/2015 96 Ibid. 106 CNN, October 2007 87 NBC News, 10/24/1999 97 Center for Responsive Politics, 2/17/2011 107 Ibid. 88 New York State Board of Elections, 8/6/2001 98 Washington Post, 4/26/2011 108 CNN, 2008

89 NY1 News, November 2008 99 Ibid. 109 , 5/22/2015

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SUMMATION lenge … overall, I believe he’s done a very good job.”116 Donald Trump is not a pro-growth conser- vative. He has advocated universal, govern- Too often Trump has been on opposite ment-run health care,110 a massive new sides of the same issue. He’s come out “wealth” tax,111 and the abuse of eminent against Obamacare while maintaining that domain so the government could forcibly government must pay to ensure universal buy up private property and redistribute it health care. Trump calls for lower taxes to commercial developers.112 While Trump but supported the largest tax increase in may claim new positions since taking those history.117 One place where Trump has been stances, he has yet to fully renounce them. consistent is equally troubling: on trade, In fact, he remains supportive of single- he has repeatedly called for harmful, big payer health care and abuse of eminent do- government tariffs,118 especially ones that main, while remaining steadfastly opposed would provoke a massive trade war with to free trade. China.119

In 2004, when asked by CNN’s Wolf In light of Donald Trump’s past statements Blitzer, “Do you identify more as a Demo- and positions, the Club believes he would crat or a Republican,” Trump said, “… not be a pro-growth president. in many cases I probably identify more as a Democrat.” He then explained, “I’ve been around for a long time, and it just seems that the economy does better under the Democrats than the Republicans.”113 Consistent with that viewpoint, Trump has donated frequently and heavily to liberal Democrat politicians.114

While Trump has clearly touched a nerve with Americans who are frustrated with Washington, his approach to politics is not unlike the worst of Washington politicians. Instead of taking consistent and principled stands, he has jumped on popular band- wagons. He trashes Hillary Clinton today, but he praised her as a terrific hard worker in the last two election cycles, and hoped she’d get the Democratic presidential nomination in 2008.115 Today he criticizes , but in 2009, as Obama was overseeing the bailouts, Trump assessed the president this way:

“I would hire him [Obama]. He’s handled the tremendous mess he walked into very well. He still has a daunting task ahead of him but he appears to be equal to the chal-

110 The Advocate, 2/15/2000

111 Ibid.

112 ABC News, 6/1/1998 116 Bloomberg, July 2009

113 CNN, 2004 117 PolitiFact, 9/2/2015

114 OpenSecrets.org 118 CNN, 7/28/2015

115 Fox News, 3/28/2012 119 Fox News, 4/1/2011

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