Trump’s Next Task Is Turning ‘Beautiful Bill’ Into Economic Boon

TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Foundation’s Daniel Bunn says President Donald Trump’s new tax law will offer national economic growth if the administration prioritizes investment, sorts out policy priorities, and works on the implementation details.

Now that President Donald Trump’s $3.4 trillion tax and policy bill is the law of the land, the administration should do everything in its power to make it work as intended. If the White House wants to unleash a new age of economic growth and prosperity, it must win both an administrative and messaging battle.

First, the administration must prioritize investment. Policies such as full expensing, which allow businesses to immediately write off the costs of investment, made an impact in the 2017 Tax Cuts and Jobs Act (TCJA)—even when it was implemented on a temporary basis.

Now that these provisions are permanent, the growth potential can’t be overstated. The government needs to ensure these tools achieve their goals, but part of that will require a pivot on trade.

The administration has a strong desire to boost manufacturing investment and support onshoring and there are many provisions in the new tax bill that support this aim. But the administration’s erratic trade policy is driving up the costs of key inputs that manufacturers rely on to build things in the US.