Right now, America is in desperate need of an economic revitalization. For centuries, the rest of the world has seen America as an economic powerhouse. Over the last couple of decades, however, we have lost our edge. Therefore, It is incumbent on our next president to foster an environment in which companies want to start doing business here again. If we look at the plan Trump has set forth in his platform, we will start to see that his business first mindset is exactly what America’s youth needs right now.
Compared to other countries in the world, America has a corporate tax-rate system that is way above the world average. According to the National Review, America’s combined federal and average state corporate-tax rate of 39 percent is the highest in the developed world. Considering the fact that the national average is around 25%, companies are leaving America at a historical rate. In other words, government regulation is crowding out many companies that simply can’t turn a high enough profit to justify staying in America. Major companies, such as Apple, have moved their headquarters to places like Ireland that offer a significantly lower corporate tax rate (15%). To prove my point that America isn’t an ideal breeding ground for corporations, Facebook is reportedly building a 200-million-euro data centre in Ireland. They recognize that it is much cheaper to operate overseas and honestly who can blame them? Trump clearly recognizes this issue, stating “too many companies-from great American brands to innovative startups- are leaving America, either directly or through corporate inversions… Companies leaving is not the disease, it is the symptom.”
He has addressed this issue throughout his campaign platform by planning to lower the corporate tax rate to 15%. By doing so, many of the corporations would bring their headquarters back to America and it would increase GDP by an estimated 4.3 percent. Not to mention that it would increase wages by 3.6% and create nearly 800,000 full time jobs. Trump, a hyper wealthy real estate developer, understands that businesses simply operate in the most efficient way in order to reap the highest rewards for their shareholders. If companies can increase their profits by moving their headquarters to another country, it is not only a smart move but also the right action for executives to take. Thus, if we make it more desirable to do business in America-it will bring more jobs and prosperity to our economy. In other words, we should welcome them with open arms, not push them away.
Moreover, since these corporations also have to pay federal taxes on the income that they earn overseas if they bring that money back to America, they instead have chosen to leave that money overseas. According to a Bloomberg News review on 304 corporations, U.S companies are holding more than $2 trillion in profits abroad. Without these companies operating within our borders, we lose out on an opportunity to benefit off their economic profits which would otherwise increase domestic investment.
That’s why Trump wants to do away with the Affordable Care Act, which requires companies that employ over 50 employees to provide health insurance to its full-time employees. Although the unemployment rate has dropped since the passing of the ACA, it’s likely because companies are hiring more part-time workers in order to bypass the regulation. In other words, large companies are keeping workers under the 40-hour limit so they won’t have to give out these costly benefits. The law has increased the number of workers who involuntarily hold part-time jobs by more than 1 million. Moreover, ACA will especially affect small business. According to a survey conducted by the Chamber of Commerce, “27 percent say they will cut hours to reduce full time employees, 24 percent will reduce hiring, and 23 percent plan to replace full time employees with part-time workers to avoid triggering the mandate.” The only way to eliminate this waste is to repeal the Affordable Care Act and replace it with a more economically sound plan.
And as a young college educated individual, his plan of action really excites me. In a daunting world of uncertainty after I leave college, having more companies competing in the labor market make my chances of getting a well-paid job with good benefits that much more likely. It’s relieving to know that our economy should prosper under his administration as he will run the country more like a business than any president we’ve ever had.
Now I understand people’s contempt with his vulgar language, but he truly says what’s on his mind and that’s what America needs right now. Part of that sensation during his campaign, I believe, was to grab the attention of American voters who he needed to swing the election away in his favor. He isn’t a politician, he’s a successful business man whom I trust to run our nation’s economy. He has repeatedly said he will surround himself with experts and top of the line professionals that will be able to handle today’s complex issues. He may not be the most politically correct president this nation has ever seen, but surely the man knows how to successfully run this nation’s economy.