Trump’s Plan

Trump’s Economic Plan Made Simple

The US has a huge debt problem. In 2025, the government will spend about $6 trillion, but it’s only expected to bring in around $4 trillion in taxes and other income. That means they’ll have to borrow $2 trillion, pushing the national debt from $36 trillion to $38 trillion. His overall goals are to cut spending, increase revenue, and lower taxes to get that $2 trillion down.

1.  Cutting Government Waste

Trump wants to cut $1 trillion in waste and fraud. This number is very optimistic, but Trump created a new federal agency called DOGE and appointed Elon to run it. This agency’s mission is to reduce waste, fraud, and abuse to reduce government spending.

2.  Increase Revenue

• Tariffs: These are taxes on imported goods. Right now, the US brings in about $50 billion from tariffs, but Trump wants to raise that to $500 billion. Although countries may fight back against our tariffs, the US is the biggest consumer in the world. We buy $3 trillion worth of imports every year.

• Fixing Unfair Trade: For example, US cars going to Europe get hit with a 10% tax, but European cars coming into the US only pay 2.5%. That’s just not fair. Fixing these trade deals could help American companies.

• Bringing Manufacturing Back to the US: Raising tariffs makes imported products more expensive. This promotes companies to start building factories and making stuff here in the US instead of overseas. That in time means more American jobs, more tax-paying businesses. This eventually leads to a less dependent economy.

• Deregulation: He also wants to remove unnecessary rules that make it hard for businesses to grow. The easier it is to start and run a business, the more jobs and tax money we get.

• Gold Card Visa: Trump has also proposed offering lifetime US residency for $5 million. Trump thinks that at least 1-2 million people around the world could afford that. If just 100,000 of them buy in, that’s $500 billion to $1 trillion in extra revenue. This is once again very optimistic, but possible.

3.  Lowering Taxes

Income Taxes :Trump also proposed that if you make less than $150,000 you wouldn’t pay income taxes.

 Corporate Taxes: He wants to lower the corporate tax rate from 21% to 15%. That would make the U.S. one of the best places in the world to start or grow a company. For comparison, France’s corporate tax is about 25%, and Germany’s is around 30%. This would make the US highly advantageous to do business in, especially if Trumps follows through and removes unnecessary business regulations.

4.  Stocks are Down?

Over the last 5 days the DJIA is down nearly 10%. This is mainly due to new and ambitious policies that make investors nervous. We can call this dip in the stock market short-term pain for long-term gain. If the U.S. can cut waste, bring in more money, and make it cheaper to do business here, things should bounce back, stronger than before.

Conclusion

Trump, who is a highly successful businessman, has a plan that is basically about running the country like a business. Spend less by reducing unnecessary federal spending, and have a higher federal income mainly through tariffs. Although his plan makes sense, people don’t want the economy to suffer even if it means it will grow bigger and stronger in the long run. Trump is simply doing what is necessary for our country so we stop spiraling into even more debt and eventually we will have a stronger, more stable and more independent economy. On paper all these ideas make sense for our economy we will have to wait to see how it pans out putting them into practice.