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Donald Trump November 3, 2015 2016 Presidential White Paper SERIES Paper #11 donald trump November 3, 2015 INTRODUCTION of New York7 and planned to challenge Pat Buchanan for the Reform Party presiden- Donald Trump 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 New York 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 Bloomberg News, 7/28/2015 8 Chicago 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 Fox News, 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 New Hampshire.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 common 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 National Journal, 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 South Carolina Tea Party Convention 23 CSPAN, 11/21/1991 38 CBS News 60 Minutes 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 The America We Deserve, 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.
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