Americans collectively agree they are happy this presidential election is finally over. Whether you agree or disagree with the outcome of the election, one fact remains: Donald Trump’s policies will impact businesses. Let’s explore what a Trump presidency means for businesses.
The stock market’s initial reaction to a Trump presidency was plummeting, largely due to the shock that all the pollsters were wrong about calling this election. Once the market re-opened and the initial surprise wore off, stocks rallied and finished up.
Trump’s business plan includes cutting taxes, which will make America more attractive to big businesses. He wants to focus on eliminating regulations, which would greatly help U.S. energy resource efforts. Trump has attacked current trade deals; he wants to overhaul how the U.S. currently trades with other countries. Trump’s team estimates that by working on these three areas of business that the U.S. economy could grow at a 4 percent clip. Currently, the annual rate is approximately 2 percent.
Companies are anticipated to see a big tax reduction, as he wants to reduce the corporate tax rate from 35 percent to 15 percent. He believes this will help to retain businesses on U.S. soil. In the past, many companies have fled to foreign countries to conduct their businesses, as tax rates are substantially less.
Election results gave way to Republican sweeps in the House, Senate and the presidency. Since 1945, there have only been 12 times when a party has held all three of these crucial positions. Out of the last 12 times, only two have been Republican reigns.
Affordable Care Act
Eliminating and/or changing the Affordable Care Act is a high probability with a Republican Congress and president. Trump’s reasoning behind eliminating and implementing a new affordable healthcare plan is because insurance premiums have increased by as much as 25 percent.
Trump’s plan to help eliminate illegal immigrants that take jobs away from Americans, is to have an H-1B visa program, which will allow a set number of immigrants to work in the U.S. Many large companies, such as Google and Facebook, use skilled foreign workers. Trump is looking for a solution that is similar to what Canada has instituted – U.S. companies would need to hire skilled American workers before using for a visa and immigration program.
While Trump ran on these platforms, it is yet to be seen how many of his ideas will be met with open minds by Congress.
Trump does not advocate increasing the federal minimum wage, but companies should note that many states increased minimum wage requirements in this 2016 election. Arizona, Colorado, Maine and Washington voted to increase the state minimum wage to a minimum of at least $12 per hour by 2020. Human resources professionals should check with each state for exact amounts and more information.
Learn more about what a Trump presidency means for businesses.
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