CNN —
Former President Donald Trump announced yet another targeted tax cut on Thursday, promising more relief as Election Day approaches.
On Thursday, President Trump spoke at the Detroit Economic Club and promised to make interest paid on auto loans fully tax deductible, similar to the existing general deduction for mortgage interest. Michigan is home to many automakers and is an important battleground state.
Noting that many in the audience work in the auto industry, he said, “This will massively stimulate domestic auto production and dramatically make car ownership more affordable for millions of working American families.” It will be,” he said.
He also said that once he takes office, he will formally notify Mexico and Canada of his intention to invoke the six-year renegotiation clause of the U.S.-Mexico-Canada Agreement, signed in January 2020 to replace NAFTA.
President Trump called his proposal “a detailed plan to save America’s auto industry,” adding, “A vote for Trump would result in a massive exodus of manufacturing jobs from Mexico to Michigan, from Shanghai to Sterling Heights.” Deaf,” he claimed.
He said the United States was “stupid” for allowing “powerful” corporations to “invade and attack and rape our country,” adding: “That’s what they did.” Oh, he used the word rape. Yes, I used that word. They raped our country. ”
One tax expert questioned why President Trump would limit the benefits to just car loans. Howard Gleckman, a senior fellow at the nonpartisan Urban-Brookings Tax Policy Center, said the measure would not benefit most Americans.
“The interest in cars is just more election pandering,” Gleckman said.
At the same time, President Trump vowed to eliminate double taxation for Americans living abroad, but did not elaborate on how such relief would work.
“We will abolish double taxation on overseas nationals once and for all,” he said in a video released Thursday.
Currently, some Americans living abroad must pay taxes both in the United States and in their country of residence. But once you factor in the amount you pay to foreign governments, people with incomes below $126,500 won’t owe U.S. taxes in 2024. Many other countries do not impose taxes on their citizens living elsewhere.
In the video, Trump called on expatriates to participate.
“You have to make sure you’re registered and you go vote because I’m going to take good care of you,” he said. “You’ve wanted this for years and no one listened to you. You deserve it. I’m going to do it.”
These tax proposals are the latest in a series of expensive tax cuts that Mr. Trump has rolled out in recent months, many of them aimed at specific voters whose support he seeks. The former president promised to eliminate taxes on tips, Social Security benefits and overtime pay, as well as eliminate the $10,000 cap on state and local tax deductions signed into law as part of the 2017 Tax Cuts and Jobs Act. All of these proposals must be approved by Congress, but one of the signature accomplishments of his first term was extending the expiring personal income tax and estate tax provisions of the 2017 Tax Cuts Act. The proposal is in addition to the pledge.
But these measures come at a high price, which experts say will not be covered by the tariff hikes he plans to introduce. Taken together, President Trump’s policies will increase the national debt by $7.5 trillion over 10 years, according to recent estimates from the Committee for a Responsible Federal Budget.
Vice President Kamala Harris’ package would increase the debt by $3.5 trillion, the committee found.
CNN’s Ali Main contributed to this report.
