Hillary Clinton will deliver a major economic speech on Thursday in Michigan in which she will chastise new tax-cut proposals from Donald Trump while labelling his plan as one that only benefits the ultra-wealthy.
According to a memo provided to Business Insider by a Clinton campaign official, the Democratic nominee will look to “lay down the choice on the economy” by contrasting her economic plan with the one provided by Trump in a speech earlier this week.
She will claim that Trump’s economic vision is “regurgitated trickle-down economics of the typical Republican, but worst,” casting the plan as “wildly unrealistic” and “destructive,” according to the memo.
In the speech in Warren, Michigan, Clinton will highlight a new component of Trump’s tax plan that she will dub the “Trump Loophole,” the portion of his platform dedicated to slashing the tax rate on what is known as “pass-through” income.
Pass-through income is income that “passes through” the business to the individual returns of its owners. CNBC’s Robert Frank cast the loophole as the biggest tax break for the wealthy in Trump’s plan. Although analyses have shown the policy helps small businesses, most of its benefits would go to wealthier business owners.
Pass-through income is currently taxed at individual rates, with a ceiling of 39.6%. Trump’s plan will slash the tax rate for this income to 15%.
An analysis by the Center on Budget and Policy Priorities showed that the vast majority of pass-through income goes to the top 1% of earners, while the top 400 earners in 2013 earned 20% of their total income this way. For the top 400 earners, that was slightly more than $94 million each, on average.
Clinton will make the case that this loophole will be of extreme benefit to Trump, noting multiple reports that most of the Manhattan billionaire’s earnings are from pass-through income.
She will dub another aspect of Trump’s economic plan the “friends and family discount,” which stems from his proposal to repeal the estate tax. Clinton will also criticise his plan to reform the tax brackets and his proposed rollback on federal regulations involving the coal and oil industries, as well as his supposed “pessimistic vision” of the country.
The former secretary of state will also cite analysts who claim that Trump’s plan would “balloon” the national debt, according to the campaign memo.
In addition to ripping Trump’s vision, Clinton will speak extensively on her economic and jobs plan she has touted throughout the country in the wake of the Democratic National Convention last month. The plan will include five elements that she will discuss during the Thursday speech.
Those elements include an investment in infrastructure, manufacturing, and scientific research, plans for tuition free college for middle class families and debt-free college, policies aimed at ensuring higher wages, Wall Street reform, and what the campaign called “reforming outdated laws.”
Clinton is scheduled to deliver her speech at 1:15 p.m. ET.
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