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As Republican presidential candidate Donald Trump embarks on a campaign to win back the White House, he has laid out an economic vision that includes lower taxes, less regulation and steeper tariffs on China and other countries.
Trump is in Milwaukee this week for the Republican National Convention, and is set to take the stage Thursday night.
Ahead of his keynote speech, here is everything that voters need to know about Trump's economic agenda for a second term in office.
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The coming election is particularly consequential because whichever party voters select to control the White House and Congress next year will determine the fate of the Tax Cuts and Jobs Act.
Former President Donald Trump, left, and Sen. JD Vance, R-Ohio, and Republican vice-presidential nominee, during the Republican National Convention at the Fiserv Forum in Milwaukee, Wisconsin, on July 15, 2024. (Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images / Getty Images)
Enacted in 2017 by Republican lawmakers and Trump, the law drastically overhauled the nation's tax code, including reducing the top individual income tax bracket to 37% from 39.6% and nearly doubling the size of the standard deduction. However, those changes to the individual section of the tax code are poised to sunset in 2025, meaning that many taxpayers – including those who earn less than $400,000 – will face steeper levies if the law is not extended.
More than $3.4 trillion in individual income and estate tax cuts are set to expire next year if Congress does not act.
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Trump has pledged to make the entirety of the tax law permanent if he is re-elected in November and has slammed President Biden for his position.
"He wants to let our tax cuts expire," Trump said in May at rally in New Jersey. "Instead of a Biden tax hike, I’ll give you a Trump middle-class, upper-class, lower-class, business-class – big tax cut. You’re going to have the biggest tax cut."
Additionally, Trump has promised to eliminate taxes on tips for service workers.
Former President Donald Trump leaves after speaking at a campaign rally at the Trump National Doral Golf Club on July 09, 2024 in Doral, Florida. (Joe Raedle/Getty Images / Getty Images)
"This is the first time I've said this, and for those hotel workers and people that get tips, you're going to be very happy, because when I get to office we are going to not charge taxes on tips," Trump said during a rally in Las Vegas in June.Tariffs
A key aspect of Trump's re-election campaign is higher tariffs, which he says will protect U.S. manufacturing jobs.
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Biden kept in place Trump's tariffs on China – and even increased some of the levies on steel, aluminum, electric vehicles and other goods. Now, Trump says that he will impose even more tariffs if he wins in November.
The GOP candidate has floated enacting a duty of at least 10% on all imports from all countries, a tariff of 60% on all Chinese imports and a 100% tariff on all cars made outside the U.S.
However, one report from the Peterson Institute for International Economics, a nonpartisan research group, estimates that Trump's tariff plan could cost as much as $1,700 per year for the average middle-income family.Oil and drilling
Trump has said that he will bring down stubborn inflation by opening up the U.S. to more oil and gas drilling.
The sun rises behind an oil tanker driving through the Permian Basin in Mentone, Texas, on Nov. 26, 2019. (Reuters/Angus Mordant / Reuters Photos)
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"We have more liquid gold than anybody," Trump told Bloomberg.The Federal Reserve
Whichever candidate wins the November election will eventually be tasked with deciding who leads the Federal Reserve, the most powerful central bank in the world.
Trump said during an interview with Bloomberg News that he would allow Fed Chair Jerome Powell to finish his term, which ends in May 2026.
But he previously told FOX Business' Maria Bartiromo that he would not reappoint Powell to a third term as Fed chief.
"I think he’s political," Trump said in February. "I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates."
