Initially, Trump's actions have thwarted any optimism for unfettered capitalism.

Rewritten Article:

If you cast your vote for Donald Trump on his promise of increasing economic freedom last year, you've been duped, mate. The White House, along with their allies, are preparing another round of tax-code trickery that mirrors progressive social engineering more than it does pro-growth reform. And don't forget the fiscal recklessness that echoes the left's mistakes.

Let's call a spade a spade: The administration has no committed adherence to free-market principles and is actively undermining them. Their approach could better be described as disguised central planning masquerading as economic nationalism.

This week saw an executive order attempt to control prescription drug prices, reminiscent of Democrats' past proposals. If enforced, it would invariably lead to a decrease in pharmaceutical R&D and innovation.

Tariffs remain the administration's most evident economic transgression after Trump unleashed the most severe escalation of protectionism since the infamous Smoot-Hawley Act of 1930. Unlike the '30s, today's economy is deeply interconnected with global supply chains, making the damage extensive and immediate. Tariffs, in essence, are taxes on American consumers, workers, and businesses.

The president himself has stated his willingness to restrict consumer choice, telling parents they may have to settle for fewer toys for their kids. Arrogant statements about how much we should buy and what sectors we should work in are nothing more than economic authoritarianism.

They're also indicative of a deeper government corruption. Policymaking is now done by executive orders, with comatose congressional Republicans, much like some Biden-era Democrats, passively allowing the president to act like a monarch.

A vigorous, united Congress would remind any president that manufacturing jobs were mainly lost due to technologies that also created new jobs and opportunities in their districts. Prosperity increases only when innovation and competition flourish, and it is not restored by pulling people back into lower-productivity roles.

Now, even Trump's tax agenda – once hailed by many free-market advocates as a shining light – is being compromised. Instead of advocating for the broad-based, growth-focused reforms we had hoped for, the administration is doubling down on gimmickry: exempting tips and overtime pay, expanding child tax credits, and contemplating raising top marginal tax rates.

These moves may poll well, but they're unprincipled and unproductive. They undermine the 2017 Tax Cuts and Jobs Act, which aimed (however imperfectly) to simplify the code and encourage growth, and not to micromanage worker and household behavior through the Internal Revenue Service.

Moreover, some Republican legislators are pushing to extend the 2017 tax cuts without substantial offsets, setting the stage for a debt-fueled crisis. According to Scott Hodge, former president of the Tax Foundation, the GOP's proposed cuts could add over $5.8 trillion to the debt over a decade - nearly thrice the cost of the 2021 American Rescue Plan, which many Republicans rightly criticized for fueling inflation and fiscal instability.

To be clear: Pro-growth tax reform is essential. But not every tax cut is pro-growth; no tax cut justifies further fiscal deterioration. Extending the 2017 cuts, which I generally support, shouldn't be confused with true tax reform.

Some of the provisions being floated – expanded credits, exclusions for tips and overtime, rolling back the state and local tax (SALT) deduction cap – are not growth policies. They are wealth redistribution masquerading as tax reform, indistinguishable in substance from the type of demand-side, Keynesian stimulus Republicans once condemned.

Hodge notes that these measures would resemble the American Rescue Plan more than they would correct its pricey mistakes. And with the Federal Reserve still striving to curb inflation, adding trillions in unfunded liabilities to the national ledger is highly irresponsible.

None of this should surprise anyone paying attention. This administration is filled with advisors and surrogates who glorify union power, attack globalization, and scorn the idea of limited government. Some sound more like Bernie Sanders than Milton Friedman. Whether it's directing industrial policy or distorting the tax code to reward their favorite behaviors, they are hostile to competition and liberty in the free market.

Sadly, that hostility has real consequences: higher prices, increased economic uncertainty, sluggish investment, and fewer opportunities for middle- and lower-class families.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. This article was produced in collaboration with Creators Syndicate.

Trump's $4.9-trillion tax plan targets Medicaid to offset costs

Enrichment Data – Selective Use:

Tariffs: Trump's tariffs against China have caused trade disruptions and economic instability. The tariffs have led to retaliatory measures from other countries, affecting global trade flows and increasing costs for both businesses and consumers[2][3]. High tariffs act as taxes on U.S. households, suppressing consumer spending and business investment[3][5]. The chaotic implementation of tariffs has paralyzed business decision-making, leading to reduced consumer and business spending and heightened recession risks[3][5].
Tax Code Changes & Inequality: The tax cuts have been criticized for exacerbating income inequality, as they disproportionately benefit wealthier individuals and corporations[3].
Prescription Drug Price Control & Economic Impact: The attempts at drug price control aim to reduce healthcare costs for consumers, which could improve purchasing power. However, the impact is limited by the complexity of the healthcare system and the influence of pharmaceutical companies[4].

The editorial strongly criticizes the Trump administration's economic policies, likening them to disguised central planning and economic nationalism.
The article points out the administration's willingness to control prescription drug prices, reminiscent of past Democratic proposals, which could potentially decrease pharmaceutical R&D and innovation.
The author deems tariffs, as implemented by the Trump administration, the most evident economic transgression, causing taxes on American consumers, workers, and businesses, and damaging the interconnected global economy.
The president's statements demonstrating a readiness to restrict consumer choice are described as economic authoritarianism in the piece.
The government's policy-making process, as portrayed in the article, is criticized for being corrupt, with policymaking done by executive orders and a compliant Congress.
The chaotic tax agenda of the Trump administration, once hailed by free-market advocates, is now being compromised, undermining the 2017 Tax Cuts and Jobs Act.
The article warns of potential consequences from the administration's policies, including higher prices, economic uncertainty, and reduced opportunities for middle- and lower-class families.

Initially, Trump's actions have thwarted any optimism for unfettered capitalism.