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Trump delivers a tax speech to NAM in D.C. Photo: Michael Conroy / AP

Even if President Trump is skeptical of his own tax plan, manufacturers are buying his "Middle Class Miracle" pitch on the "rebirth of the American Industry." And some are already acting on the expectation that his plan will pass: one manufacturing president said that his company is buying $1 million of new equipment this week "to take advantage of Trump's tax plan."

Why it matters: Republicans tried and failed to pass health care legislation multiple times, and some are worried the same could happen with taxes. As Axios reported yesterday, Trump wasn't thrilled about the tax framework introduced by the "Big Six" and his tax plan could be ruined if he handles this reform with the same fickleness he showed on ACA repeal-and-replace efforts.

But manufacturing execs selected by the National Association of Manufacturers (NAM) were predictably excited about Trump's plan as he gave a tax speech to them today in D.C. Trump's plan to cut taxes will "unleash economic and animal spirits that drive the economy," said Nick Pinchuck, a manufacturing CEO and NAM board member.

  • Six manufacturing executives held a roundtable discussion about the effects of Trump's tax plan before his speech.
  • Some are already acting as if it has passed. In addition to buying $1 million of new equipment, other manufacturers talked about "increasing our capital investment by 40%," doubling the amount of exports to China, and hiring new employees.
  • A key selling point for NAM members is full-and-immediate expensing, which will allow companies to to write off the costs of new equipment in the same year they buy it, rather than incrementally over 10 years. This "gives us testosterone and enthusiasm" to buy new equipment and products now, said Drew Greenblatt, a manufacturing president and NAM executive board member.
  • "The optimism comes from the expectation" that Trump's tax plan will pass, said Rich Gimmel, a NAM board member.
  • Trump echoed this optimism about the same plan he was privately skeptical about, promising to add "rocket fuel to our economy" via tax cuts and to end "the era of economic surrender."

Bottom line: Enthusiasm will only get this tax plan so far. There are still critical details for Congress to figure out — the promised corporate rate of 20% (which Trump still wants at 15%) could actually jump up to 28.5% given the current details, according to a recent analysis from the Tax Foundation. This means Congress would have to find additional savings to pay for the cut. And Trump and Republicans will have to continue selling the plan to Americans all over the country, not just manufacturers holding on to the hope of "the lowest top marginal income tax rate for small and medium-sized businesses in more than 80 years."

Go deeper

Updated 1 hour ago - Health

First North American Omicron cases identified in Canada

COVID-19 testing personnel at Toronto Pearson International Airport in September. Photo: Steve Russell/Toronto Star via Getty Images

The first two cases of the new Omicron variant have been detected in North America, the Canadian government announced Sunday evening.

Driving the news: The World Health Organization has named Omicron a "variant of concern," but cautioned earlier on Sunday that it is not yet clear whether it's more transmissible than other strains of COVID-19.

4 hours ago - Health

WHO: Not yet known whether Omicron leads to more severe disease

Photo illustration: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

The World Health Organization on Sunday said that it is not yet clear whether the newly discovered Omicron variant is more transmissible than other strains of the COVID-19 virus.

Why it matters: The agency's statement comes as the variant, discovered in South Africa, has already been detected in European and Asian countries.

10 hours ago - Health

Fauci: Omicron variant will "inevitably" be found in U.S.

Photo: Chip Somodevilla/Getty Images

Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, cautioned on Sunday that the COVID-19 Omicron variant will "inevitably" be found in the United States.

Driving the news: Fauci, Biden's chief medical adviser, told ABC's George Stephanopoulos on "This Week" that U.S. officials will meet with colleagues from South Africa later on Sunday to try to determine the severity of the cases, as countries scramble to learn more about the variant.