Trump says he will nominate Musk to lead a government efficiency commission if he is chosen by Reuters

Written by Helen Coster and Gram Slattery

NEW YORK (Reuters) – Republican presidential candidate Donald Trump said on Thursday he would create a government efficiency commission led by billionaire fan Elon Musk if he wins the Nov. 5 election, during a wide-ranging speech outlining his economic vision. for the world.

Speaking at the New York Economic Club, the former president also promised to reduce corporate taxes on manufacturing companies in the country, establish “low-tax” zones in the state where construction companies will be encouraged to build new homes, and start private wealth. a bag.

Trump has been discussing the idea of ​​a more efficient commission with aides for weeks, people familiar with those discussions told Reuters. However, his speech on Thursday was the first time he publicly supported the idea.

It was also the first time Trump said Musk had agreed to handle the body. Trump did not explain how such a commission would work, except that it would develop a plan to eliminate “fraud and improper payments” within six months of its formation.

“I will create an effective government commission tasked with examining all financial information and operations of the entire federal government,” Trump told an audience that included Trump's former treasury secretary, Steve Mnuchin, and financiers Scott Besent and John Paulson.

Musk said in an Aug. 19 podcast that he had conversations with the former president about the commission and that he might be interested in serving on it.

“I look forward to serving America when the opportunity arises,” the Tesla (NASDAQ: ) executive wrote on X Thursday. “No fee, no title, no recognition required.”

There are already parts of the government that identify waste, such as the Government Accountability Office, a nonpartisan, watchdog agency tasked with investigating federal spending.

Politicians have called for separate commissions to be effective in the past. Republican President Ronald Reagan established a similar body during his 1981-1989 term called the Mercy Commission.

Trump's proposal drew the attention of Everett Kelley, president of the American Federation of Government Employees, a union that represents about 750,000 government workers. He accused Trump and Musk of wanting to rip off uncooperative civil servants and replace fired workers with cooperation.

“There is nothing practical about that,” Kelley wrote in a statement to Reuters.

PROVISION OF CORPORATE TAX, HOUSES ON FEDERAL LAND

During his speech, Trump emphasized his plan to reduce the corporate tax to 15% from 21%, but only for companies that produce in this country. He also said that he will open the land of the association to build houses with the aim of reducing the cost of housing. These new housing zones will be “low tax” and “low regulation,” Trump said, without elaborating.

Although Trump has already said he wants to lower the corporate tax rate to 15%, he has never tied that rate to maintaining domestic manufacturing.

Trump also called for the creation of a sovereign wealth fund, in part to finance major infrastructure projects. He also added that he would withdraw unused funds related to the 2022 Inflation Reduction Act, which is one of the accomplishments of the Biden law. And Trump said he would “issue a national emergency declaration” in an effort to help new energy projects clear regulatory hurdles.

His affordable housing plan is in stark contrast to that of Vice President Kamala Harris, the Democratic nominee, who has proposed creating a $25,000 credit for first-time homebuyers.

Harris' plan has been criticized by Republicans and other economists who say the bill will raise housing prices. Trump's plan to develop federal land, on the other hand, may anger environmentalists, and it is unclear how much demand there would be for housing in rural areas where most of the land is located.

Harris Senior Policy Advisor Brian Nelson said Thursday that Trump's economic plan will “explode the national debt,” while driving inflation and killing jobs.

Many economists believe that the economic policies outlined by Trump will slow growth and increase inflation. But they also realize that in order to implement much of his policy, Republicans need to retain control of the House of Representatives and take the Senate from Democrats.

Some imports could become more expensive in Trump's second administration because of his proposed tariffs on the United States' trading partners and his plan to deport millions of illegal workers, economists said.

Asked by Reuters about the effective government team led by Musk, Paulson on Thursday said “it's great to have him as an ally. He's a terrific businessman, and I think the government could be very effective.”

On the trail, Trump has repeatedly blamed Harris for rising prices of everyday goods during President Joe Biden's time in office.

Although headline inflation has slowed in the past two years, many consumers are still unhappy with the high prices they have to pay for food, gas and other goods.

Trump is seen as a competent economic manager by many voters. But his advantage over Harris on the issue is vanishing, the study shows.