President Donald Trump is keeping his campaign promise to cut regulations on businesses, even outstripping the last president to take a large ax to the nation’s regulatory regime, Ronald Reagan.
The Competitive Enterprise Institute found the Trump administration issued 58 percent fewer major regulations than former President Barack Obama and slashed the Federal Register by 32 percent.
“It took a few years for Ronald Reagan to achieve his ultimate, one-third reduction in Federal Register pages following Jimmy Carter’s then-record Federal Register. So by this metric, Trump is moving much faster,” CEI president Clyde Wayne Crews told the Washington Examiner.
Within days of taking office in January, Trump issued an executive order requiring federal agencies to eliminate at least two rules for every new regulation adopted.
The first phase of the executive order directed agencies to achieve $0 or less in regulatory cost to Americans and that goal was achieved with $561 million in net savings, according to the American Action Forum.
“My administration is working every day to lift the burdens on our companies and on our workers so that you can thrive, compete and grow. And at the very center of that plan is a giant, beautiful, massive — the biggest ever in our country — tax cut,” Trump told the National Association of Manufacturers in Washington, D.C., last week.
“For decades, the policy of Washington, D.C., on the subject of manufacturing was a policy best summarized in one word: surrender,” he continued. “They surrendered. Under my administration, the era of economic surrender is over, and the rebirth of American industry is beginning. America is winning again, and America is being respected again.”
In an op-ed, published in the Milwaukee Journal last month, Trump emphasized the importance of not only cutting regulations, but the tax burden on businesses, as well.
He recounted, “In 1986, President Ronald Reagan led the effort to make America the most competitive nation in the world by cutting our business tax rate to 34 percent, well below the average rate of other developed nations at the time. It worked. Our economy boomed, the middle class thrived and median family income increased.”
The economy in fact grew a third larger during Reagan’s tenure in office (or the size of the entire German economy at the time) and added 16 million new jobs, when the nation’s population was 80 million less than today.
Trump said that Reagan’s tax plan was revolutionary in its day and set the standard for other economies around the world.
“But our economic competitors did not sit still,” Trump explained. “They saw what we did and started lowering their business tax rates, too. Over the past 30 years, the average business tax rate among developed nations in the Organisation for Economic Co-operation and Development (OECD) fell from 45 percent to less than 24 percent.”
However, the United States not only stayed still, but actually raised its business rate slightly to 35 percent which, when combined with state and local taxes, meant an effective tax rate of 39 percent, according to the president.
Trump has proposed a corporate tax rate of 20 percent.
Fox Business Network’s Maria Bartiromo stated on FNC’s America’s Newsroom on Friday that the response to Trump’s policies is already being seen in the stock market, which hit record highs again last week, spurred by news of 3.1 percent third quarter growth in the GDP.
“Basically, businesses are loosening their purse strings, and they are investing more in equipment,” Bartiromo said. “They are investing more in their businesses, and the fact is over the last 10 years we were looking at a recession-type climate when it came to business.”
She contended companies have been sitting on cash for 10 years, due to uncertainty about demand and because of regulatory policy coming out of Washington.
“Since this administration has loosened so many regulations, the business climate is starting to spend more money,” Bartiromo said. “That’s what drove this quarter in terms of GDP. That is a good number.”