Please read the following carefully.... it is an excerpt from the actual transcript on an interview Trump did with the Economist magazine:
Another part of your overall plan, the tax reform plan. Is it OK if that tax plan increases the deficit? Ronald Reagan’s tax reform didn’t.
Well, it actually did. But, but it’s called priming the pump. You know, if you don’t do that, you’re never going to bring your taxes down. Now, if we get the health-care [bill through Congress], this is why, you know a lot of people said, “Why isn’t he going with taxes first, that’s his wheelhouse?” Well, hey look, I convinced many people over the last two weeks, believe me, many Congressmen, to go with it. And they’re great people, but one of the great things about getting health care is that we will be saving, I mean anywhere from $400bn to $900bn.
Mr Mnuchin: Correct.
President Trump: That all goes into tax reduction. Tremendous savings.
But beyond that it’s OK if the tax plan increases the deficit?
It is OK, because it won’t increase it for long. You may have two years where you’ll…you understand the expression “prime the pump”?
We have to prime the pump.
It’s very Keynesian.
We’re the highest-taxed nation in the world. Have you heard that expression before, for this particular type of an event?
Priming the pump?
Yeah, have you heard it?
Have you heard that expression used before? Because I haven’t heard it. I mean, I just…I came up with it a couple of days ago and I thought it was good. It’s what you have to do.
Yeah, what you have to do is you have to put something in before you can get something out.
Mr Mnuchin: And as we talked about, economic growth under the Trump administration could increase revenues as much as $2trn over the ten-year period of time. So priming the pump in the short term leads to growth.
So you would have a bigger deficit, a stimulus, to prime the pump that would lead to faster growth?
So I happen to think that 3% is low. But you can’t do it if your companies are leaving the country because taxes are too high. Now, I’m going to do something there too. If our companies leave the country, number one they’re leaving for numerous reasons but one of the big reasons is the taxes are so high. When they leave—go back to trade for a second, when they leave the country, go to a certain country wherever it may be, and they fire all their workers in the United States and on the assumption they build cars or air conditioners or whatever they’re building, and they open a plant someplace else and then they send the air conditioner or the car into our country with no tax, that’s not going to happen anymore. They’re going to have a very large tax to pay, in the vicinity of 35%.
Everyone in the room must have been cringing. Not only is Trump a basely ignorant moron when it comes to basic economic theory, he is such an egomaniac he wants to take credit for a saying that has been in every economic book printed since the 1920's.
The depth of this man's ignorance is staggering when compared to the responsibilities inherent in the job he has been elected to do. We have never had this big of a difference between a president's understanding and the knowledge he needs to have to perform his duties. It is literally astounding.