President Donald Trump’s re-election to a second term was a decisive victory for business and investment — two vital engines of economic growth. His campaign promises consistently reflected a strong pro-business ideology, emphasizing support for entrepreneurship and corporate expansion. This approach stood in stark contrast to Vice President Kamala Harris’s consumer-oriented strategy, which appeared to neglect the essential equilibrium between fostering investment and stimulating consumption.
Donald Trump’s business-first agenda
A key highlight of President Trump’s first term was the 2017 Tax Cuts and Jobs Act (TCJA), which prioritized empowering small businesses, entrepreneurs, and investors by allowing them to reinvest more capital into their ventures. The TCJA introduced several pro-growth measures, such as the 20% qualified business income (QBI) deduction, the option to fully expense equipment purchases, and a reduction in the corporate tax rate from 35% to 21%. During his campaign, Trump proposed further lowering the corporate tax rate to 15%, reinforcing his commitment to accelerating corporate investment.
These initiatives delivered measurable results. Lower taxes and strategic incentives encouraged businesses to ramp up investments in the U.S. — purchasing equipment, creating jobs, and producing goods and services essential to societal growth. Expanding the QBI deduction to 25-30% and applying it to all business categories, including service industries, could further boost entrepreneurship and economic development.
President Trump also acknowledged the critical role of research and development (R&D) in driving innovation and economic progress. By advocating for permanent bonus depreciation, he aimed to position the U.S. competitively alongside other nations offering full deductions for equipment investments. However, this vision should also extend to enhancing R&D tax policies, as many other countries provide superior R&D tax benefits, leaving U.S. businesses at a disadvantage.
The contrast with Kamala Harris’s consumer-focused agenda
The Harris-Walz campaign adopted a markedly different economic approach.
Vice President Kamala Harris’s campaign placed heavy emphasis on consumer protection, proposing price controls and programs designed to stimulate consumer spending. These policies focused on delivering short-term benefits to consumers but often at the expense of long-term economic growth.
While price controls can appear appealing, they frequently distort market dynamics, discouraging businesses from investing in sectors where returns are capped. This leads to reduced innovation and hinders global competitiveness over time.
Harris’s reliance on a consumption-driven strategy leaned heavily on immediate spending boosts. However, without adequate investment in infrastructure, technology, and R&D, such an approach risks economic stagnation. Furthermore, her proposal to raise corporate taxes to 28% and combined capital gains taxes to 33% would divert funds away from business expansion, job creation, and innovation, ultimately restraining economic growth.
A case for prioritizing pro-business strategies
Despite his strong pro-business platform, President Trump did propose some consumer-focused measures during his campaign. Notable suggestions, such as eliminating income taxes on tips and overtime pay, were appealing to certain voter segments but presented challenges for business owners. These changes could create disparities among workers in the same industry, such as chefs and hosts being taxed fully while servers would not, leading to unintended inequities. Additionally, they could incentivize a shift toward nonexempt, overtime-heavy work schedules, further complicating business operations.
President Trump also hinted at leveraging tariffs in trade negotiations, particularly with China and Mexico. While tariffs can serve as strategic tools, they often result in higher costs for both consumers and businesses.
As President Trump begins his second term, it is crucial for him and Congress to maintain a steadfast focus on policies that drive business and investment. This approach has consistently proven effective in sustaining economic growth and ensuring national prosperity.
This isn’t a new or partisan idea. For example, President John F. Kennedy pioneered investment-focused economic policies by signing legislation for the investment tax credit in 1962, encouraging business equipment purchases during an economic slowdown. Similarly, President Ronald Reagan spurred investment through policy changes in 1981, significantly benefiting real estate.
President Trump and Congress have a unique opportunity to build on this legacy. By reducing business tax rates, fostering investment, and supporting entrepreneurship and innovation, the U.S. can enhance its global competitiveness and stimulate economic vitality. Entrepreneurs, as always, remain the backbone of the American economy.
