Trump: tax reform will spur growth in the financial markets

The President will meet with truck drivers in Pennsylvania and will assure them that the reform will benefit the middle class

The US President Donald trump said that the observed growth in the financial markets will only accelerate if Congress passes the proposals on reform of the tax code.

Trump is headed to Pennsylvania, where he plans to meet at the airport with a group of drivers of cargo transport, promising them that the proposed changes will increase their salary, “$ 4,000”, although economists believe that this indicator will be achieved only for eight years, with increases of about $ 500 per year.

Speech by trump in front of truck drivers, representatives of the most common professions in 29 of the 50 States, is intended to challenge the position of independent analysts who are convinced that the proposed Republican tax reform will be beneficial mainly to people with the highest incomes. Analysts insist that the result of this reform, some of the middle class will pay even more taxes than now.

While trump revealed some details of its plan, including reducing the number of tax rates applicable to certain income levels from seven to three categories within a progressive tax system, which provides higher rates for people with higher income.

However, the Republican-controlled Congress has not yet determined what income levels will apply the new rates, and analysts, is to speculate about how these changes will affect specific categories of taxpayers. Trump also wants to lower taxes for corporations to encourage the growth of the U.S. economy, the largest in the world.

Before the speech, trump wrote on Twitter: “stock market since the election on 8 November increased by 5.2 trillion dollars, 25 percent. Unemployment at the minimum level for 16 years, and if Congress will give us massive tax cuts (and reform), which I ask that these figures will continue to grow by leaps and bounds”.

The President also once again made attacks on two characteristic of the object of his criticism: the media and the Democrats.

“It would be nice if the fake news was covered by almost unprecedented growth in financial markets, marked since the election, wrote trump. – We need to reduce taxes. Democrats seek to raise taxes sharply and a soft border regime to facilitate growth of crime. Republicans – the largest in the history of tax cuts and construction of the wall!” We are talking about the wall on the border with Mexico, which trump proposes to build with the aim of limiting illegal immigration.

The administration of the tramp, started work in January, predicted that complete tax reform by August, now plans to make it to the end of the year. However, the congressional committees responsible for tax legislation, has not yet begun hearings, and Democrats and Republicans sharply disagree about the necessary changes.

Under some scenarios, the tax cuts can increase long-term debt amounting to more than $ 20 trillion, which is equivalent to anathema for many conservative Republicans. Democrats are calling to amend the tax code changes that will benefit primarily the middle class and low-income citizens, not the rich.