President Donald Trump on Friday addressed a meeting of the National Association of Manufacturers in Washington and declared that “the era of economic surrender is over.”
Trump said the newly released Republican tax reform plan would result in the “rebirth of American industry.”
Speaking before a friendly and enthusiastic audience of business owners and CEOs, the president touted what he called “a giant, beautiful, massive, the-biggest-ever-in-our-country, tax cut” for businesses, that he said is at the center of his economic revival plan. He also outlined some of the biggest changes his tax plan would make for businesses.
“For the majority of American manufacturers that file taxes as sole-proprietors, S corporations or partnerships, we will cap your top tax rate at a maximum of 25 percent. This will be the lowest top marginal income tax rate for small and medium-sized businesses in more than 80 years,” he said, adding, “this huge tax cut will be rocket fuel for our economy.”
Trump also highlighted tax reforms intended specifically to aid manufacturing and other industries that rely on heavy machinery. “For the next five years, our framework will allow you to fully write off the cost of new equipment in the year you buy it,” the president said. “That means more production, more investment and more jobs.”
The speech before the manufacturers group came just two days after Trump and congressional Republicans released their tax reform framework, which consists of sweeping cuts to marginal tax rates for both individuals and businesses.
But critics, and even some Republicans, quickly noted that the tax reform framework contained no specifics on how the massive cuts would be paid for. Unless more revenue sources are added to the current tax plan, it could end up adding trillions of dollars to the national debt.
Trump, however, did not go into the details on Friday. “We want every American to know the dignity of work, the pride of a paycheck, and the satisfaction of a job well done,” he said.