Primary tabs
What Trump's Economic Agenda Means To You
With the presidential inauguration just days away, we turn our attention to President-elect Donald Trump's economic agenda and what it may mean for investors.
Most economists expect that the economic policies that have been proposed during the campaign will be priorities, but some degree of bipartisan support — and thus some compromises — will be needed to push legislation through the Senate in particular. Among Trump's key policy pillars are tax reform, infrastructure investment and regulatory reform. Although the Trump agenda extends well beyond the three areas we focus on below, they represent perhaps the most influential factors for the near-term economic and market outlook.
Tax reform
During the campaign, corporate tax reform was one of Trump's central themes. The current U.S. corporate rate of 35 percent is the highest across the developed economies. However, the proposition of cutting it to 15 percent would put it among the lowest, with the stated goal of improving the competitiveness of U.S.-based corporations and creating a tax environment that makes the United States more attractive to global corporations.
Another critical priority is to provide relief to U.S.-based companies with profits exceeding $3 trillion held outside the country. Some bipartisan support exists for a one-time reduction in the applicable rate that would be applied to any capital repatriated to the United States. If successful, it would be a positive development for these companies and the U.S. economy, which could benefit from the influx of capital.
Click Here to read the full story
