How will the new Donald Trump Administration affect the USA? It remains to be seen since it’s only been a few months since Trump’s inauguration. However, it’s likely that the new administration could affect US business in the following ways:
Yair Hamami reports there could be a big reduction in corporate tax rates across the board. The goal would be to provide companies with more profits, which in turn would help to boost the economy. Republicans have a history of taking an anti-tax position for businesses, and it seems that Trump would support similar legislation in the tradition of supply-side economics.
However, an interesting issue is that Trump has stated that the business world doesn’t pay enough taxes for hedge funds. So Yair Hamami believes there’s a good chance he could take steps to require hedge fund managers and others pay a higher rate on their earnings from hedge fund profits.
- Small Business
Trump has claimed that he would take steps to reduce taxes for small businesses. However, there haven’t been any details released yet that name specific changes to the current tax code that would specifically affect small businesses.
Another fact to keep in mind that small businesses are usually affected more by local/state regulations than by US federal laws. It’s an important issue to keep in mind because even if small businesses are mentioned specifically in Trump-backed legislation, Yair Hamami reports it’s unclear how much they would affect companies with fewer employees.
Based on his campaign promises it seems that Trump will take a somewhat protectionist stance concerning US trade. For example, he could take major steps to keep manufacturing jobs in the US’ “Rust Belt” and prevent them from going to Mexico and other Central American countries.
Yair Hamami reports Trump has also stated that he supports the US renegotiating NAFTA, which is a free trade bill that includes the US, Canada, and Mexico. It was signed into law in the early 1990s by President Clinton. However, Yair Hamami points out that Trump wants NAFTA to undergo major changes or be ditched altogether.
Trump has also argued that China practices unfair business practices. Any major changes involving US-China trade could have a major impact on both countries. For example, the US is the world’s biggest imported of Chinese products so any significant changes in the two countries’ trade could have a big effect on the #1 and #2 biggest economies in the world.
Some experts predict that Trump’s anti-trade changes could have major consequences. One of the most drastic ones would be a trade war between the US and China, for example.
These are some of the ways the Trump administration could affect US business. Yair Hamami reports many of the details aren’t clear yet, but it’s unlikely that it will be business as usual. It’s possible that Trump could change his stances on these issues. On the other hand, based on his stances on business issues during the 2016 campaign it’s possible he could support legislation that would have a major impact on the economies of the US and other countries.