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The election of President Donald Trump to a second term was a victory for business and investment – two vital aspects of economic growth. His campaign guarantees largely reflected a pro-business ideology, promising support for entrepreneurship and corporate expansion, and contrasted sharply with Vice President Kamala Harris’s consumer-centric approach that looked as if it would ignore the crucial balance between investment and consumption.
Donald Trump’s business-driven agenda
The cornerstone of President Trump’s first term was Tax Cuts and Jobs Act of 2017 (TCJA), with a clear focus on enabling small businesses, entrepreneurs and investors to take a position more a refund into their ventures. The TCJA was filled with pro-growth policies, including 20% qualified business income (QBI) deduction.the possibility of fully bearing the costs of buying equipment and reducing the corporate income tax rate from 35% to 21%. During the campaign, President Trump suggested going even further with restrictions tax rate as much as 15%emphasizing its commitment to stimulating business investment.
This support for business and investment has worked. Thanks to lower tax burdens and targeted incentives for entrepreneurs and enterprises has made significant investments in the USA — buying more equipment, creating jobs and creating goods and services that society desperately needs. Expanding the QBI deduction and increasing it to 25-30% would supply an additional incentive for entrepreneurship, especially if the deduction applied to every type of companies, including service industries.
President Trump also recognizes that research and development play a key role in innovation and economic expansion. By advocating for everlasting bonus depreciation, Trump aimed to bring the United States into line with other countries that supply full deductions for equipment investments. However, this commitment should include tax policy on research and development. Most other countries have much higher R&D tax credits than the United States, which puts our businesses at a drawback.
Contrast with Kamala Harris’ focus on the consumer
The Harris-Walz campaign took the opposite approach.
Vice President Kamala Harris made a uniqueness throughout the campaign consumer protection. Her suggestions included price controls I programs aimed at increasing consumer spendingprioritizing direct advantages for consumers over long-term economic growth.
Price controls often seem attractive on the surface, but in reality they distort the market, often discouraging corporations from investing in areas where their returns can be limited. This stifles innovation and, in the long term, reduces global competitiveness.
Vice President Harris’ focus on a consumption-based economy could be excessive short-term expenses. Without investment in infrastructure, technology and research and development, the economy risks stagnation. Besides, she suggested increasing corporate tax to twenty-eight% and connected capital gains taxes as much as 33%. The money earmarked for higher taxes would then not be available as capital for businesses to grow, hire and innovate, ultimately hampering economic growth.
A call to focus on pro-business policies
Despite his largely pro-business stance, President Trump also outlined his consumer-focused policies during the campaign. Suggestions for eliminate income taxes on suggestions and additional time wages they were popular with large and vital groups of voters, but caused havoc among business owners. The tax change would create massive inequality among staff inside the same company, with hosts and chefs paying taxes on their full earnings while servers didn’t. It would also create unintended incentives for people to change to non-exempt (and additional time) work schedules.
Judging by his campaign rhetoric, it seems that President Trump will certainly use tariffs as leverage against U.S. trading partners, especially China and Mexico. Like all tariffs, this can definitely hit the wallets of consumers and businesses.
As President Trump begins his second term, each he and Congress must proceed to focus on policies that strengthen business and investment. This is a proven path to sustainable economic growth and prosperity.
This is not a partisan position either. The first time a U.S. president encouraged investment through economic policy was President John F. Kennedy signed an act creating an investment tax relief in 1962, encouraging corporations to buy equipment during an economic downturn. President Ronald Reagan also used economic policy to stimulate investment, adding significant advantages to real estate investment in 1981.
President Trump and the next Congress have a probability so as to add to this positive legacy. They simply must stay focused and united for the right policy changes. Lowering business tax rates, encouraging investment, and supporting entrepreneurship and innovation would go a great distance toward improving the United States’ competitiveness relative to the remainder of the world. Entrepreneurs are the driving force of the American economy.
Let’s not let this moment pass.