As the November 5 U.S. presidential election draws near, candidates from both sides of the aisle reveal their key policies, and many investors are keen to find out what the next president could mean for their net worth.
And now, after Vice President Kamala Harris revealed a more lenient capital gains tax of 28%, former President Donald Trump announced on September 5 that those companies that make their products in the U.S. will have their corporate tax slashed to 15% from the current 21%, a rate which was lowered by Trump in his previous mandate, from 35%.
However, this benefit would only apply to those operating in the United States, as the Former President said in his speech to the Economic Club of New York:
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“You have to make your product in America; if you outsource, offshore, or replace American workers, you’re not eligible for any of these benefits,” he said.
This new proposal represents the latest development in the Harris-Trump contest on economic policies, especially tax-related ones.
Elon Musk could be a part of Trump’s office
Elaborating further on his economic proposals, Trump said that he would form a government efficiency commission, which billionaire Elon Musk would preside over.
This commission would evaluate the performance of federal government sectors and recommend increasing efficiency and reducing costs.
“I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms,” said the Former President.
Trump called for the creation of a sovereign wealth fund
In continuation of his economic proposals, Trump suggested that a sovereign wealth fund should be created using a model employed by countries such as China, Norway, and South Korea.
These funds are traditionally financed by budget surplus; however, the United States hasn’t recorded a budget surplus since 2001, when it recorded excess funds of $128 billion.
However, the Republican presidential candidate suggested that increased tariffs would finance this fund, which would, in turn, be used to invest in assets such as stocks and bonds, hedge funds, and real estate.
The latest additions to economic proposals expand the already broad economic approach Donald Trump has taken to capital gains tax and assets like cryptocurrencies.
Featured image:
Elkowitz, Jonah M. National Harbor, MD, USA – February 24, 2024. Digital Image. Shutterstock.
