Donald Trump says his plans to slash regulations will get mortgage rates 'back down' to 3%

Donald Trump introduced a range of new economic plans on Thursday, including the establishment of a government efficiency commission that he claimed Elon Musk has agreed to lead if Trump wins the upcoming election.

"At Elon Musk's suggestion, who has given me his full endorsement, I will create a government efficiency commission tasked with conducting a comprehensive financial and performance audit of the entire federal government and recommending significant reforms," Trump said during a speech at the Economic Club of New York. "This is something we need to do. We can’t continue as we are."

Trump also unveiled other proposals aimed at reducing the corporate tax rate and cutting government regulations, especially those targeting energy production. He further vowed to reclaim unspent funds from laws passed under President Biden's administration, endorsed cryptocurrency, and reaffirmed his plan to impose extensive tariffs on imports.

The idea for the efficiency commission came after a conversation Trump had with Musk on X, where the Tesla CEO suggested creating such a group to address inflation, with Musk expressing interest in leading it.

“I’d love it,” Trump replied at the time.

The Wall Street Journal was the first to report Trump’s economic proposals, which come just days before his debate with Vice President Kamala Harris in Pennsylvania. Harris has recently announced her own economic plans, focusing on helping small businesses and making essentials like housing, groceries, child care, and healthcare more affordable for middle-class and working Americans.

A Plan to Lower the Corporate Tax Rate

Trump proposed cutting the corporate tax rate to 15%, down from the current 21%, but only for companies manufacturing their products in the U.S.

"If you outsource, offshore, or replace American workers, you won’t be eligible for any of these benefits. In fact, you’ll face a significant tariff when bringing in products from abroad," Trump said during the speech.

Trump has often mentioned his desire to reduce the corporate tax rate even further than the 21% introduced in his 2017 tax law, a key accomplishment of his presidency. Prior to that law, the corporate tax rate was 35%.

Trump argues that lowering the corporate tax rate, along with making other provisions of his 2017 tax law permanent and introducing additional tax cuts, would boost the economy, increase revenue, and reduce the deficit. However, experts continue to debate the economic impact of the 2017 law, and cutting the rate further could face resistance in Congress amid concerns over rising federal debt.

Trump also pointed to his proposed government efficiency commission as a tool to reduce government spending.

"As its first task, this commission will create an action plan to eliminate fraud and improper payments entirely within six months," Trump told the crowd. "This will save trillions of dollars."

Trump and other Republicans have long highlighted waste, fraud, and abuse as areas where government savings could be achieved. However, Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, noted that this argument is "often used as an excuse to do nothing."

Goldwein added that for the commission to be effective, it would need a broad mandate to review major federal spending programs like Social Security, Medicare, and defense.