Trump Victory Shakes Businesses ?

Our friends at the Wall Street Journal have written another provocative headline centered on only three businesses: big multinationals, energy and healthcare. Missed the big picture, we think.

Dodd-Frank, the bane of the big banks, is going away.

The multinationals are worried about a retreat into protectionism. Mr. Trump’s stance on trade and tariffs with Mexico and China is probably only an opening salvo to level the trade playing field. Some of the CEOs better go back and read ‘The Art of the Deal”.

Energy will be a winner by liberalizing the drilling rules and the Keystone pipeline finally becomes a reality. Clean coal is expanded. Fracking is here to stay, greenies.

Healthcare could be a mixed bag, depending on what happens to Obamacare. We could see more competition on drugs and in hospitals, and maybe the dismantling of the VA back into hospitals dedicated to, but not for the exclusive use of, veterans. Or the VA system might go away, as redundant, with veteran’s care done by existing hospitals. We could argue this one either way. We suspect the latter, because getting rid of big bureaucracies will a watchword.

But, ok, for the rest of us, it’s pretty much good news. We printed off for our clients 8 pages of regulations that are probably going away, which is good news.  If you’d like a copy, let us know; we’ll have to fax it to you, since it isn’t a PDF.

Business taxes are going down, to 20%, which is good news.   We will be better able to compete around the world, with lowered tariffs for getting into China and Mexico. All that cash stashed abroad will be coming back at low tax rates (can we hope for 5%?). After all, it’s been taxed once, in the country of origin, so let’s not be punitive.

The reworking (read downsizing) of the EPA, with its onerous air and water rules, will be a plus. The general reduction in government spending, caused by tax cuts, will be welcome.

We presume liberal depreciation laws are here to stay. Maybe the IRS will be kinder and gentler. 941 taxes could go down.

We don’t like the higher starter wages with paid time off passed in Arizona, but there are lots of loopholes in it, so it’s not so bad. Our clients tell us they’re paying above starter wages for people, anyway.

So, let us know what’s on your wish list. We have a bit of influence with the Trumpers, and we’ll be pleased to use it on your behalf.

This entry was posted in donald trump, economic policy, Entrepreneurship, taxes, trade and tagged , , , , , , . Bookmark the permalink.

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