Donald Trump said he would cut the corporate tax rate, slash regulations and conduct an audit of the federal government, embracing an idea proposed by billionaire backer Elon Musk, as he pitched his economic agenda to Wall Street and corporate leaders in New York.
“I am promising low taxes, low regulations, low energy costs, low interest rates, secure borders, low, low, low crime,” Trump said Thursday at the Economic Club of New York in what was billed as a major address on the economy, drawing a contrast with his Democratic rival Kamala Harris.
The centerpiece of Trump’s address was a push to reduce the corporate tax rate to 15% for companies that make their products in the U.S. That move would be a large reduction from the current 21% rate — a key policy win from Trump’s own 2017 tax law.
Al Drago/Bloomberg
“We want to make our goods in America and most of them we can,” Trump said. “If you outsource, offshore or replace American workers, you are not eligible for any of these benefits. In fact, you will pay a very substantial tariff, when a product comes in from another country.”
Trump spoke to about 650 people at the Economic Club of New York event. The group counts major corporate executives, business leaders and economists among its members. Hedge fund billionaire John Paulson, Cantor Fitzgerald LP chief executive officer Howard Lutnick and Key Square Group LP’s Scott Bessent — all Trump supporters — were among those in attendance.
When Trump was president, he sought to reduce the corporate rate from 35% to 15%, but ultimately landed on 21% after pressure from Republicans to pare back the cuts to allow for more tax benefits for households.
A 15% corporate rate would represent a major win for large U.S. corporations, but it would also contribute to rising deficits. It would also mean that big companies would end up paying far lower rates than smaller, privately-held businesses, where rates can be as high as 37%.
Trump’s proposal is also in direct opposition to Harris’ vision for corporate taxes. She has called to increase the corporate rate to 28%.
A push to lower the corporate tax rate also threatens to spark a major policy fight in Washington. Major portions of Trump’s 2017 tax law expire in 2025, which will force Congress to negotiate over whether to extend those cuts.
Government efficiency
Trump on Thursday also vowed to establish a government task force to review federal expenditures, an idea recommended by Musk, the Tesla Inc. and SpaceX chief executive officer who is the world’s richest person. Trump said the commission would be “tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms.”
Musk, in a conversation with Trump on X last month, called for a federal task force to ensure that taxpayer money is spent effectively and pitched himself for a role in that effort. Trump said Musk, who has endorsed the former president and criticized Harris on his social media platform, could lead that commission. The former president has praised Musk as “the greatest cutter.”
Trump often boasts about how many regulations were cut during his term as president after signing an executive order shortly after taking office ordering that at least two regulations had to be identified to be repealed whenever a new one was proposed.
On Thursday, he pledged to eliminate 10 regulations for every new regulation if elected.
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