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Republican presidential candidate Donald Trump announced new tax break proposals during a speech at the Detroit Economic Club on Thursday. He proposed making interest on car loans tax-deductible and ending double taxation for Americans living abroad.
Trump said that the car loan interest deduction could boost domestic auto production and make car ownership more affordable, especially in Michigan, a key swing state.“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families,” he said.
Trump also shared plans to notify Mexico and Canada about renegotiating the US-Mexico-Canada Agreement upon taking office, aiming to shift manufacturing jobs back to the United States. He said, “You vote for Trump, and you will see a mass exodus of manufacturing jobs, but from Mexico to Michigan, from Shanghai to Sterling Heights.”
The former president also committed to helping US citizens living abroad by pledging to end double taxation. He made this promise in a video statement shared by Solomon Yue, CEO of the group Republicans Overseas, on his account on X. “You have to make sure that you are registered and you are going to vote, because I’m going to take very good care of you,” Trump said. “Once and for all, I’m going to end double taxation on our overseas citizens. You’ve been wanting this for years, and nobody has listened to you. You deserve it, and I’m going to do it,” he added
Solomon Yue praised Trump for his commitment, saying, “Republicans Overseas has been fighting for the rights of Americans abroad since its inception ten years ago.” He added, “We have spoken to many politicians over the years, and while they sympathized with the burden of double taxation, very few have been willing to act.”
Currently, Americans residing in other countries often have to pay taxes both to the US government and the country where they live. Some bilateral agreements exist to reduce this tax burden.
Critics question the effectiveness of the car loan interest deduction, as many Americans do not itemize deductions. Howard Gleckman from the Urban-Brookings Tax Policy Center called it “more campaign pandering.”
Trump has also proposed tax breaks on tips, Social Security benefits, and overtime pay, as well as lifting the $10,000 cap on state and local tax deductions, which he had previously signed into law. His tax plan could increase the national debt by $7.5 trillion over a decade, according to the Committee for a Responsible Federal Budget.
Democratic presidential candidate Kamala Harris’s policy package would increase the debt by $3.5 trillion over the same period, the committee found.
Economist Marc Goldwein estimates Trump’s new proposals could reduce tax revenues by over $100 billion over ten years. Only about one-fifth of taxpayers might benefit from the car loan interest deduction if it is similar to the mortgage interest deduction.
Some audience members supported the proposals, like barber Paulina Salzeider, who said, “In the service industry, the nicer you are, the kinder you are, the friendlier you are, you get rewarded by tips. So I feel that we deserve it.” Others, such as financial adviser Curtis Lyons, were skeptical, believing past policies favored the wealthy.
Trump also addressed concerns about voter fraud in the 2024 elections, cautioning against illegal voting and efforts that could affect military ballots.
