Trump's Signed Bills: Laws Or Lost Causes?

During his tenure as President of the United States, Donald Trump signed a number of bills into law, including the $1.9 trillion CARES Act, the $2.3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the Tax Cuts and Jobs Act. However, there were also instances where Trump suggested he would block or veto certain bills, such as the Covid relief and government funding bill, before ultimately signing them into law.

Trump signs Covid relief and government funding bill

On December 27, 2020, President Donald Trump signed a $2.3 trillion Covid-19 relief and government funding bill, which included $900 billion in Covid relief. The bill was signed at Mar-a-Lago, averting a government shutdown that would have occurred if funding was not approved by the following day.

The bill included $1.4 trillion to fund government agencies through September and contained other end-of-session priorities such as funding for cash-starved transit systems and an increase in food stamp benefits. It also included a $15 billion fund to assist movie and live entertainment venues, enhanced unemployment benefits, and the Paycheck Protection Program.

Trump's delay in signing the bill caused some consternation, as he criticised the bill for only providing for $600 direct payments to Americans, and for including unnecessary spending. He stated that he would send a "redlined version" of the bill to Congress, requesting that certain funds be removed. However, as presidents do not have a line-item veto, this request was largely symbolic.

Trump's unprecedented economic boom

The Trump administration oversaw an unprecedented economic boom, with the president's policies delivering strong growth, low unemployment, and robust productivity. This economic success was built on four pillars: a rules-based economic order, strong alliances, a liberal immigration system, and a celebration of expertise.

Rules-Based Economic Order

Trump's America upheld a rules-based economic order that afforded it free access to vast international markets. This included the imposition of tariffs to protect American industries and workers, and the use of economic and military aid to promote American interests and stabilize markets and trading partners.

Strong Alliances

Maintaining strong alliances was a key part of America's economic strategy. The country promised its allies military security, which was backed up by American military might, including hundreds of military bases across the globe. This security umbrella created stable and prosperous allies, generating vast markets for American exports.

Liberal Immigration System

A liberal immigration system complemented America's economic might. Immigration reform in the 1960s brought educated professionals to the country, while later decades saw the arrival of millions of unskilled workers. Together, they helped America withstand demographic decline and boosted the economy, with undocumented persons comprising a significant portion of the agricultural, construction, and maintenance workforces.

Celebration of Expertise

The post-war era celebrated scientific and technological expertise, with the government staffed by professionally trained experts. This partnership between the federal government and universities was critical to driving America's economic and technological prowess, with the private sector also benefiting from this celebration of expertise.

While Trump's second term may see a shift away from this framework, the unprecedented economic boom of his first term was built on these four pillars.

Trump's tax relief for the middle class

The Trump administration's Tax Cuts and Jobs Act (TCJA) of 2017 has been a topic of debate among economists and politicians. While some argue that it provided significant relief to middle-class Americans, others claim that it primarily benefited the wealthy. Let's delve into the details of Trump's tax relief measures and their impact on the middle class.

The Tax Cuts and Jobs Act:

The TCJA was enacted with the goal of stimulating economic growth and improving the financial situation of Americans across the board. One of its key provisions was a permanent reduction in the corporate tax rate from 35% to 21%. Additionally, the law introduced several measures aimed at benefiting individuals and families, such as doubling the tax-free amount that married couples could pass to their heirs.

Impact on Middle-Class Americans:

There are differing opinions on how the TCJA impacted middle-class Americans. Some analysts argue that the benefits of the law disproportionately favoured the wealthy. They claim that while the middle class received temporary relief, they will ultimately bear the burden of the growing federal budget deficit caused by the tax cuts. According to Isabel Sawhill and Christopher Pulliam, the TCJA will exacerbate income stagnation in the middle class, causing them to fall further behind the rich and even the poor in terms of economic growth.

On the other hand, Justin Haskins presents a contrasting view. By analysing IRS tax data, Haskins found that middle-income and working-class earners benefited the most from the TCJA. Specifically, those with adjusted gross incomes (AGI) between $15,000 and $50,000 enjoyed an average tax cut of 16% to 26% in 2018, the first year the law took effect. In contrast, households earning $1 million or more received smaller tax cuts, with an average reduction of less than 6%.

Comparison with Biden's Economic Policies:

It is worth comparing Trump's tax relief measures with those proposed by President Joe Biden. Biden's economic agenda includes extending tax cuts for low- and middle-income families and providing further financial relief through an expanded child tax credit. To fund these initiatives, Biden intends to raise taxes on the wealthy and large corporations, ensuring that the burden does not fall on the middle class.

In contrast, Trump's proposals, if enacted, would increase the cost of living for middle-class families. For instance, Trump has suggested imposing a blanket tariff on all imports, which would cost a typical family about $1,500 annually. Additionally, he aims to repeal the Inflation Reduction Act's electric vehicle tax credits and vehicle emissions rules, resulting in higher gasoline bills for families.

Trump's tax relief measures, particularly the TCJA, have sparked debates about their true beneficiaries. While some argue that the middle class benefited the most, others claim that the law primarily served the interests of the wealthy and that middle-class Americans will ultimately bear the burden of the resulting fiscal deficits. When comparing Trump's policies with Biden's proposed economic agenda, it is evident that Biden aims to provide more direct relief to the middle class and fund these initiatives through progressive taxation.

Trump's deregulation efforts

• Financial Regulations: Trump delayed the implementation of the Department of Labor's fiduciary rule, which was designed to ensure financial advisors act in their clients' best interests. This raised concerns about potential conflicts of interest in financial advice. The Economic Growth, Regulatory Relief, and Consumer Protection Act also reduced regulatory burdens on smaller banks, which critics argue could increase consumer risks.
• Healthcare Policies: Trump's administration sought to scale back parts of the Affordable Care Act (ACA). While the ACA was not repealed, certain provisions were weakened, such as the elimination of the individual mandate penalty requiring Americans to maintain health insurance. These changes resulted in reduced coverage and increased out-of-pocket costs for some Americans.
• Environmental Regulations: Trump rolled back environmental protections, including regulations on water quality and emissions standards, to reduce compliance costs for businesses in the energy and manufacturing industries. Critics warn of long-term consequences for public health and environmental sustainability.
• Energy Sector Deregulation: Trump's energy policies focused on promoting domestic oil, natural gas, and coal production by easing regulations on fossil fuel industries. While these efforts lowered energy companies' costs and boosted production, they were criticized for contributing to environmental degradation and climate change.
• Consumer Protections: The Trump administration reduced oversight of industries like payday lending to curb predatory practices. However, this also raised concerns about weakened consumer protections, leaving vulnerable populations at risk.

Trump's fair and reciprocal trade policies

Trump's plan to ensure reciprocal and fair trade involves the following:

• If any foreign country imposes a tariff on American-made goods that is higher than the tariff imposed by the U.S., Trump will have the authority to impose a reciprocal tariff on that country's goods.
• To ensure fairness, the Act will empower Trump to negotiate the reduction of tariffs on foreign goods if foreign countries agree to reduce their tariffs on American goods.
• The Act will put America first and continue Trump's trade success, which reduced America's trade deficit, grew wages, and created more than half a million new manufacturing jobs.
• The Act will restore fairness to trade, boosting American industry by matching the tariff practices of foreign rivals.
• Trump will revoke China's Most Favored Nation trade status, arguing that it is past time that China stopped getting preferential treatment as they undermine American national security interests.

Trump's plan to bring back American jobs and wealth involves the following:

• Trump will pass landmark legislation—the Trump Reciprocal Trade Act—to ensure fair and reciprocal trade.
• Other countries will have two choices: get rid of their tariffs on the U.S. or pay hundreds of billions of dollars in reciprocal tariffs.
• Trump will knock down barriers to American farm products, American dairy products, steel, and more.
• Trump will have FAIRNESS and RECIPROCITY as the guiding principles of his trade policies.
• Trump's strategy will return jobs and wealth to the U.S. and launch an economic boom that will lift the middle class and eliminate dependence on China and other countries.

Frequently asked questions