5 Ways a Trump 2024 Win Could Impact Businesses and Employees’ Wallets, According to CEOs
Written by
Heather Altamirano
Edited by
Amber Barkley
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In a few days, Americans will elect a new president — and no matter who takes office, there will be major economic changes.
“The real challenge will come from a potentially divided Congress, which could impact everything from trade negotiations to tax policies,” said Ross Meyercord, CEO of Propel Software.
Major policy shifts will happen whoever wins, but if former President Donald Trump prevails and wins a second term, here are five ways his proposed policies could impact businesses and employees’ wallets, according to CEOs.
Potential Tax Changes
Trump has many tax plans, including eliminating taxation on Social Security, tips and overtime. He also stated he’s considering getting rid of the federal income tax and extending the 2017 Tax Cuts and Jobs Act (TCJA), which is scheduled to expire by the end of 2025. The TCJA is a big win for businesses and large corporations, because it lowers their tax rates.
“A Trump win could lead to changes in the tax landscape, with a strong possibility of corporate tax cuts similar to his previous administration,” said Drew Yancey, Ph.D., founder and CEO at Teleios Strategy. “This might mean increased capital for businesses, allowing for greater investment in expansion and innovation.
“However, it could also reduce government revenue, potentially leading to cuts in public services that indirectly impact employees.”
Meyercord added, “Businesses should anticipate a continuation of the tax cuts first introduced during Trump’s presidency. Trump has already pledged to extend those cuts and lower the corporate tax rate even further, aiming to bolster American manufacturing.”
Immigration Policy and Labor Market Dynamics
Immigration is another important issue for voters, and Trump has touted a massive deportation plan that would affect businesses.
“Tighter immigration policies will reduce the labor supply, especially in industries that have traditionally relied heavily on immigrant labor, such as [the] agricultural, construction and technology sectors,” said Joe Cronin, president of International Citizens Insurance.
Wages would also be affected, according to Cronin. “With reduced labor available on the supply front, wages are likely to rise in any area of demand not matched by the supply of available labor. … High demand with low supply would increase wages and be a boon to those employees. However, labor shortages may be a hindrance to some businesses, which could reduce productivity and increase labor costs.”
Trade and Tariffs
Trump has been very vocal about implementing a strict tariff policy that calls for a tariff of up to 60% on Chinese goods and a blanket tariff of 20% on imports from other countries, which could greatly affect consumers and cost American households up to $2,600 extra a year, according to the Peterson Institute for International Economics.
“Increased tariffs could raise costs for businesses reliant on imported goods, potentially leading to higher consumer prices,” Yancey said. “On the other hand, a focus on boosting domestic production could create more jobs within the U.S., impacting the employment landscape and possibly driving up wages in specific sectors.”
However, higher tariffs could cost businesses, too, Meyercord said. “While these policies are designed to spur domestic production, they could also drive up costs for businesses reliant on global supply chains.”
Deregulation
During his term in the White House, Trump repealed over 100 environmental policies focused on clean water, air, toxic chemicals and wildlife to ease restrictions on polluting industries. In addition, if Trump is reelected, he would help Wall Street break free from “burdensome regulations,” Reuters reported, while setting up protections for modest investors and borrowers.
“If Trump were to win, we could anticipate a shift toward deregulation, especially in industries like energy, finance and manufacturing,” Yancey said. “This might lower operational costs for businesses in these sectors, leading to increased profitability. For employees, this could translate to higher wages or bonuses, but it might also bring uncertainties related to environmental or worker protections.”
Private Valuations and Employee Equity
In terms of investing, Angelo Crocco, owner of AC Accounting, said Americans should prepare for big changes if Trump wins.
“Expect a surge in valuations, especially in fast-growing industries like tech and healthcare, if the Trump administration relaxes the regulations around private investment and introduces new tax breaks for U.S.-based private firms,” he explained.
“As a CEO, I would have the golden opportunity to raise capital or explore private equity partnerships,” Crocco said. “Employees with equity-based compensation can very aptly build their wealth if their company remains private longer or seeks acquisitions, as the value of their stock options would rise substantially. This approach suits employees looking to grow wealth in a booming private market.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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