http://www.wsj.com/articles/donald-trump-to-propose-tax-breaks-on-pocketbook-issues-in-economic-plan-1470663478Donald Trump to Propose Tax Breaks on ‘Pocketbook’ Issues in Economic PlanBy NICK TIMIRAOS
Aug. 8, 2016 9:37 a.m. ET
Republican presidential nominee Donald Trump will outline Monday in an economic policy speech a proposal to allow families to deduct child-care spending from their income taxes as part of a broader effort to slash taxes, according to an adviser familiar with the plan.
It isn’t clear whether Monday’s speech will include details on how such a tax break might be structured and whether it would be available to families that don't pay income taxes.
So far, Mr. Trump’s economic policy message has focused primarily on placing greater curbs on trade and immigration, coupled with a large tax cut. The campaign’s economic message has promised to boost job growth but has included fewer appeals to voters on pocketbook issues such as child care and college tuition, a focus of Democratic rival Hillary Clinton.
Mr. Trump is also set to call for a temporary moratorium on all new regulations from federal agencies and would seek to roll back rules that reduce employment. The campaign adviser said that review could target a series of environmental rules issued by the Environmental Protection Agency to curb carbon dioxide emissions from power plants and to bring more waterways and wetlands under federal protection.
At the same time, Mr. Trump has promised to aggressively use executive power to renegotiate trade agreements, to label foreign countries as currency manipulators and to apply tariffs and other penalties to trading partners.
Mr. Trump has also outlined a tax-cut plan that would sharply lower income-tax rates on individuals and businesses. The Tax Policy Center, a nonpartisan project of the Urban Institute and Brookings Institution, has said the plan would reduce federal revenue by $9.5 trillion over a decade, making it far larger than the tax cuts enacted last decade by President George W. Bush.
The GOP nominee has also called for a big increase in infrastructure spending that would be financed by taking on new debt, but he hasn’t fleshed out details of that plan.
Budget experts say that even with a boost in economic growth, the combination of higher government spending on infrastructure—as well as other priorities that include a veterans’ health-care expansion and a ramp-up in border security—and large tax cuts could send deficits soaring.
