Constellation Research founder R Ray Wang previews President Donald Trumps special address to the World Economic Forum on Varney & Co.
President Donald Trump on Thursday delivered remarks virtually to the World Economic Forum in Davos, Switzerland, in which he discussed how his tax plans will look to incentivize companies to make products in America or face tariffs.
“To further unleash our economy, our majorities in the House and Senate, which we also took along with the presidency, are going to pass the largest tax cut in American history, including massive tax cuts for workers and families and big tax cuts for domestic producers and manufacturers,” Trump said.
Portions of the original Trump tax cuts – including the lower tax rates for individuals as well as the expanded standard deduction and child tax credit – are due to expire at the end of 2025 if they’re not extended. Trump said, “We’re working with the Democrats on getting an extension of the original Trump tax cuts, as you probably know by just reading any paper.”
“My message to every business in the world is very simple: come make your product in America and we will give you among the lowest taxes of any nation on earth. We’re bringing them down very substantially, even from the original Trump tax cuts,” the president said.
TRUMP DRAWS BIG INVESTMENTS IN U.S.A. SINCE ELECTION WIN
President Donald Trump outlined his tax plans in a speech to the World Economic Forum and urged companies to make products in America to avoid tariffs. (Scott Olson/Getty Images / Getty Images)
“But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff,” he said. “Differing amounts, but a tariff, which will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt.”
Trump campaigned on an across-the-board tariff on all imports in the 10% to 20% range, along with a 60% levy on goods from China.
Since taking office, he indicated he’s planning to start with a 10% tariff on China, plus 25% tariffs on Canada and Mexico that could begin as early as Feb. 1.
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U.S. President-elect Donald Trump delivers remarks next to Chairman and CEO of SoftBank Masayoshi Son, at Mar-a-Lago in Palm Beach, Fla., on Monday, Dec. 16. (Reuters/Brian Snyder / Reuters)
“Under the Trump administration, there will be no better place on earth to create jobs, build factories, or grow a company than right here in the good old USA,” the president told the Davos audience.
Trump went on to cite several recent investment announcements as signs of growing business optimism about the U.S. economy, including several investment deals he helped facilitate.
SAUDI PRINCE EYES $600B INVESTMENT IN US OVER NEXT 4 YEARS: REPORT
Saudi Arabia’s Crown Prince Mohammed bin Salman shakes hands with U.S. President Donald Trump, at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS/File photo / Reuters Photos)
“SoftBank has announced between a $100 and $200 billion investment in the U.S. economy because of the election result, and just two days ago, Oracle, SoftBank and OpenAI announced a $500 billion investment in AI infrastructure,” he said.
“Other companies likewise have announced billions and billions and billions adding up to trillions of investment in America,” Trump continued. Among those other deals is a $20 billion investment by UAE-based firm DAMAC, which is planning to build data centers in the Sun Belt and Midwest.
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“And it’s also reported today in the papers that Saudi Arabia will be investing at least $600 billion in America, but I’ll be asking the crown prince – who’s a fantastic guy – to round it out to around $1 trillion,” the president said. “I think they’ll do that because we’ve been very good to them.”
