Financial guru and Donald Trump adviser Wilbur Ross told Newsmax TV that the president-elect's "very progressive" tax strategies will mean lower financial burdens for all companies and eventually "every single category of wage earner."
The WL Ross & Co. chairman and CEO told "Newsmax Prime" host J.D. Hayworth said Trump's deregulation plan will also help revive growth.
Ross — whose name has surfaced as a possible Donald Trump pick for Commerce secretary — also decried the lack of capital investment by corporations under an Obama administration.
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"Capital investment by corporations has been one of the big laggards in the recent very mild, weak recovery," Ross told Hayworth.
And that entire economic recovery will be kicked into higher gear by Trump's proposed corporate tax rate cut from the 35 percent maximum rate to 15 percent maximum, he said.
"The tax cut . . . in plain English means that anybody who's paying the full tax now as a business will get an immediate 30 percent boost to post-tax earnings," he told Hayworth.
"Very few companies have earnings growth of 30 percent in a year, so that's a wonderful thing and it's a permanent thing," he said, explaining how Trump will also slash taxes for all levels of wage earners.
"Every single category of wage earner, with one or two little flukey anomalies that'll be dealt with in the final legislation, gets a reduction," he added.
"A married couple with two children and a nanny earning $50,000 a year will get more than a 35 percent reduction. Same couple, same number of children having a nanny earning $75,000 will get a little over a 30 percent reduction. Same family structure earning $5 million a year will get around a 3 percent reduction," Ross said.
"It's a very progressive thing in the sense that the least percentage benefit goes to the higher bracket and the highest percentage benefit goes to the lower bracket," Ross said.
"That's important because the propensity to spend is much higher than the lower brackets, which in plain English means they'll be buying things and that in turn will stimulate the economy," Ross said.
Ross also said Trump is on the right track as well with his plans to deregulate. "We estimate that regulation costs this country $2 trillion a year. Just cutting out 10 percent of that would be $200 billion a year and after the president-elect's proposed tax rate of 15 percent, that would create about $70 billion after-tax earnings for American companies," he said.
"That's money that will either be paid out in dividends or more likely mostly reinvested."
An investor and businessman who made his billions advising bankruptcies and restructuring flailing companies, Ross was No. 20 in Newsmax's 100 Most Influential Business Leaders in America.
(Newsmax wire services contributed to this report).
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