Yahoo Finance Here’s How Lower Taxes Under Trump Would Improve the Economy, According to Grant Cardone
One of Donald Trump’s campaign promises is to provide large tax cuts for workers as part of his plan to “build the greatest economy in history.”
“Republicans will make permanent the provisions of the Trump Tax Cuts and Jobs Act that doubled the standard deduction, expanded the child tax credit and spurred economic growth for all Americans,” the official Republican Party Platform states. “We will eliminate taxes on tips for millions of restaurant and hospitality workers, and pursue additional tax cuts.”
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Grant Cardone, a private equity fund manager and real estate investor, believes that lower taxes would indeed help rebuild the economy — here’s why.
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Lower Taxes Will Allow Americans To Invest More in the US Economy
Cardone believes that lowering taxes will have a positive ripple effect on the economy.
“He will lower taxes on all earners, and this means more money to spend and improve the GDP,” Cardone told GOBankingRates. “He also would introduce or extend tax incentives, like accelerated depreciation for investments on major purchases, equipment, homes and businesses, which encourages investors to invest money, not take it off the board.”
Some political experts also agree with Cardone’s take.
“Following President Trump’s historic tax cuts, Americans saw an increase in disposable income, increased consumer spending and an overall vibrancy to an otherwise lukewarm economy,” said Logan Russell, president at Redvail, a political consulting firm. “President Trump’s continuation of reducing taxes will result in more than a family of four earning $75,000 a year seeing a $2,000+ tax cut — the impact will ripple throughout.
“Small business owners will be able to expand their businesses, hire more employees and, as a result, those employees will pay less in taxes and more through consumer spending, resulting in growth in not only the local economy but each state’s economy, as well,” he continued.
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Possible Drawbacks
Russell acknowledged that there were some negative repercussions to Trump’s lowering of taxes during his previous term as president.
“Our deficit grew and pundits would likely pin — at least in part — the tax cuts to the subsequent inflation that arose in early 2021,” he said.
However, Russell believes the positive effects of lower taxes would outweigh the bad.
“Americans are more impacted by taxes than ever in recent history,” he said. “Reducing taxes will have a reverberating impact across the American workforce — an impact that Americans have advocated for at astonishing rates in recent years.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Here’s How Lower Taxes Under Trump Would Improve the Economy, According to Grant Cardone
