Republican Party presidential nominee Donald Trump has proposed a temporary prohibition, or moratorium, on new financial regulations. He announced this in his speech that detailed his plans for the economy and would not propose any new rules until the United States of America has shown significant growth.
Alongside this, Trump has also planned to rewrite the Dodd-Frank law that was put in place after the 2008 financial crisis. According to Bloomberg, this was a significant policy that showed how aligned Trump was with the rest of the Republican Party, as Representative Peter King of New York, Financial Services Committee explored. "For our leaders to speak with one voice makes a lot more sense, rather than just being anti-Obama and anti-Dodd Frank," King said.
2010 only saw three Republicans in the Senate actually vote for the Dodd Frank regulation. In addition to this, some find the regulation to be problematic because the Volcker Rule prevents banks with deposits backed by taxpayers from making "proprietary" trades. Some also believe that the Consumer Financial Protection Bureau, which was created under the new rules, is a rogue agency and is not under the control of presidential or congressional entities.
Trump's intentions are to focus on relieving small businesses of regulatory burdens and to provide a contrast to the economic policies that Democratic presidential nominee Hillary Clinton is proposing. Bloomberg also reported that Trump will provide US businesses with a tax rate of 15% and will strengthen intellectual-property protections, while also eliminating special tax treatment for carried-interest income at private equity and investment firms.
At the start of this year, Clinton also offered to close existing tax loopholes that are used by the wealthier community and would return to the way taxes worked in 2009, when Obama first became President. At an event in Iowa, she put simply that her plan "is kind of simple. We go after the wealthy to pay for what the middle class, working and poor people need." However, Rocco Beatrice Senior., managing director of Estate Street Partners LLC in Massachusetts explained that high net worth individuals (HNWIs) would not be affected.
"High net worth individuals are not going to be affected, because they always find ways not to trigger the estate tax, or the gift tax, or the generation-skipping tac. At the end of your life, you don't want to own anything in your name, and there are many ways to do that. Smart people have already figured this stuff out," he said.
Trump believes that Obama's policies "crushed middle- and lower class Americans" and the "record-breaking pace of new regulations, tax increases, restrictions on private energy production and one-sided trade deals" have caused problems for cities, according to Bloomberg. As well as this, Trump stated that Clinton's regulations will be a "lead-weight on the economy, an anchor dragging us down" and America will "need to hit the pause buttons on these regulations so our businesses can reinvest in the economy."
"She's the candidate of the past and ours is the campaign of the future. The one common feature of every Hillary Clinton idea is that it punishes you from working and doing business in the United States," Trump said of Clinton this week. Following Trump's speech, Democratic Senator Elizabeth fought back and criticised Trump's economic plan for only being of benefit to the larger corporations and the wealthy. In addition to this, the lack of new regulations would allow bankers to trick American citizens, according to The Boston Globe.
"Cheating customers & gaming the system might be your business, @realDonaldTrump, but it's not the way America is going to do business."
Clinton responded to Trump with a similar attitude to Warren, as reported in The Guardian. "His tax plans will give super big tax breaks to large corporations and the really wealthy, just like him and the guys who wrote the speech, right? He wants to roll back regulations on Wall Street. He wants to eliminate the Consumer Financial Protection Bureau, which saved billions of dollars for Americans. He wants to basically just repackage trickle down economics.
"They are just playing the same old siren song. And why they haven't learned we are not interested in economic plans that only help the top one percent, it's time to help everybody else in America get ahead and stay ahead," Clinton said.