The president’s economic policy plans are likely to have a trickle-down effect, according to a new report.
The Brookings Institution’s new Economic Policy Initiative says that “a substantial share of economic gains over the past 20 years have been driven by households and small businesses.”
The report says the Trump administration has “put forward several plans to help small and medium-sized businesses create and expand jobs and generate new income, as well as to encourage more Americans to work and invest.”
Brookings says the president is “leading by example” by focusing on creating “high-quality jobs that provide opportunity and security for Americans, while providing tax relief to working families, and encouraging them to invest in their communities.”
In its report, Brookings also says Trump’s “trickle-down” approach is likely to “have a significant impact on the size of the middle class.”
The study comes just days after Trump signed an executive order to reduce the corporate tax rate from 35 percent to 25 percent.
The president has been criticized by some economists for trying to shift trillions of dollars of tax cuts to the wealthiest Americans, who will pay a lower tax rate than they did under former President Barack Obama.