Security Bank chief economist Angelo Taningco said US economic growth might remain positively stable next year whether Republican Party’s candidate Donald Trump or Democratic Party’s Kamala Harris wins the next presidency.
“We think the US economy next year will still be in a positive shape,” Taningco said in an interview on Daily Tribune’s online show Straight Talk on Wednesday.
Taningco said more jobs and business activities can be seen in the US whether Biden’s fellow Democrat and current vice president Harris, who promotes friendly and cooperative trade and investment relations with other countries, or Trump, who is a trade protectionist, wins in the presidential elections to be held on 5 November.
“Trump has trade policies that will be imposed in terms of tariffs to reshore US businesses back to the homeland,” Taningco said.
Trump promises to impose high tariffs on goods entering the US at 10 to 20 percent and even up to 60 percent on Chinese goods.
Corporate tax cut
Taningco said Trump also aims to reduce corporate taxes which is expected to boost firms’ funds for business expansions.
The Republican candidate eyes reducing the corporate tax rate to 15 percent from 21 percent.
“A Trump presidency will benefit more US corporations because of the deeper tax cuts he is espousing. Tax cuts will invigorate businesses to spend that will generate earnings,” Taningco said.
Taningco shared analysts project growth at 2 percent levels this year as more US residents are now working and inflation rates have been declining.
The US Bureau of Labor Statistics on Tuesday reported 7.4 million job vacancies on the last day of September, fewer than the 7.86 million seen in August.
The employment figure was also better than economists’ forecast of 7.9 million.
“Jobs created were more than what was anticipated, and inflation is on the decline but still above the 2 percent target,” Taningco said.
Under the current Biden administration, US inflation also continued to decline to 2.4 percent.