As Donald Trump prepares to embark on his second term as President of the United States, many are wondering what this means for the country's fiscal path. While Trump's first term was marked by a significant increase in government spending, his second term is likely to bring about a shift in fiscal priorities ¹.
One of the key areas where Trump is expected to make changes is in the realm of tax reform. The Trump administration is likely to prioritize tax reform, building on the foundations laid by the 2017 Tax Cuts and Jobs Act (TCJA). This could involve addressing the scheduled phaseout and sunset of various TCJA provisions, as well as making changes to provisions added by the 2022 Inflation Reduction Act (IRA) ¹.
Trump's second term is also expected to bring about a more business-friendly approach to regulation. The administration is likely to take a more lenient approach to antitrust enforcement, particularly when it comes to mergers and acquisitions. This could lead to an increase in corporate consolidation, as companies take advantage of the more favorable regulatory environment ¹.
In addition, the Trump administration is expected to roll back some of the more stringent regulations introduced by the Biden administration. This could include revisions to the Dodd-Frank Act, as well as changes to the way in which corporations are regulated ¹.
Immigration and labor laws are also likely to be impacted by Trump's second term. The administration is expected to take a more hardline approach to immigration, with a focus on tightening borders and reducing the number of immigrants entering the country. This could lead to an increase in worksite enforcement, as well as changes to the way in which companies are allowed to hire and employ immigrant workers ¹.
In terms of labor laws, the Trump administration is expected to take a more pro-employer approach. This could involve changes to the way in which companies are allowed to negotiate with unions, as well as revisions to the rules governing worker compensation and benefits ¹.
Environmental and climate change policy is another area where Trump's second term is likely to bring about significant changes. The administration is expected to take a more skeptical approach to climate change, with a focus on promoting domestic fossil fuels production and manufacturing. This could involve rolling back some of the more stringent environmental regulations introduced by the Biden administration, as well as changes to the way in which companies are allowed to drill and extract fossil fuels ¹.
As Trump prepares to embark on his second term, it is clear that this will bring about a new era of fiscal policy. With a focus on tax reform, deregulation, and a more business-friendly approach, the Trump administration is likely to have a significant impact on the country's fiscal path. However, it remains to be seen how these changes will play out, and what the long-term consequences will be for the US economy ¹.
blogpay
Total Comments: 0