CREDIT: AP Photo/Mary Altaffer
Republican presidential nominee Donald Trump has spent much of his campaign blasting his Democratic rival Hillary Clinton for being too close to Wall Street. Yet in a speech focused on economic policy on Monday, Trump will call for a moratorium on all new regulations for the financial industry.
According to Bloomberg News, Trump will say he’ll stop all new financial rules until the economy shows “significant growth,” adding that the country needs “to hit the pause buttons on these regulations so our businesses can reinvest in the economy.”
Trump will also argue that President Obama’s “record-breaking pace of new regulations” along with tax increases, energy rules, and trade deals have been a “lead-weight on the economy, an anchor dragging us down.”
Monday’s speech won’t be the first time Trump has criticized financial regulation, including the Dodd-Frank Act, a package of significant financial reforms that was enacted in the wake of the economic crisis. He called for a near “dismantling” of Dodd-Frank a few months ago.
The data soundly debunks Trump’s claim that financial reforms have hurt the economy. GDP growth remained strong after it was enacted in July of 2010, as has job growth.
While Dodd-Frank is still in the process of being implemented, it has had concrete benefits for millions of Americans. Most notably, the Consumer Financial Protection Bureau has netted more than $10 billion in relief for 17 million consumers thanks to enforcement actions against predatory financial tactics. It’s also begun to address some of the systemic risks that were exposed in the financial crash.
Trump will reiterate his call to get rid of the carried interest loophole that allows private equity and hedge fund managers to receive a lower tax rate on the income they earn through their work. But the “hedge fund guys” could still end up getting a great deal if the corporate tax is lowered to 15 percent.
Undoing and blocking regulations isn’t the only giveaway to Wall Street that Trump will tout on Monday. He’ll reiterate a call to repeal the estate tax — a tax paid by the wealthiest 0.2 percent of Americans — and lower the corporate tax rate to 15 percent, both of which he’s already proposed in his tax package.