The Compound: Why Every CEO is Secretly Pumped For Trump
Markets have been on a tear since the election. Part of that is the end of economic uncertainty and the lack of a contested election. But the real story is that President-elect Donald Trump is focused on the economy and deregulation.
One of Trump’s first term policy wins was eliminating thousands of government regulations. Those came back with a vengeance during President Biden’s term. But fewer regulations make it easier for businesses to thrive.
During Trump’s first term, the goals was remove two regulations for every new one created.
Instead, he ended up removing seven regulations for every new one created. Trump plans on bigger regulatory cuts in his second term.
On economic issues, Trump is best known for talking about tariffs. The President has broad authority in tariff matters. Trump can use tariffs to increase government revenues without raising taxes. Or he can use them as a negotiating tool to strike better deals for Americans.
Meanwhile, Trump’s tax cut plan from his first term is set to expire at the end of 2025. By being back in office, Trump can work to extend those low tax rates. And Trump is looking for ways to further lower the tax burden, including lowering the corporate income tax rate to 15%.
With these measures in mind, there may be a rocky start, but the U.S. economy could be set for further structural growth, and smaller-cap companies could be poised for big wins.