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The electoral success of the Democratic Party made business nervous

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The electoral success of the Democratic Party made business nervous
November 08
13:00 2018

The results of the elections to the House of Representatives of the US Congress have been summed up. Democrats have won. This will complicate the plans implementation of US President Donald Trump.

Experts note that new significant changes should not be expected. Tax cuts or changes in business rules are not expected either. President Trump’s initiatives that have already entered into force will not be canceled.

Democrats can advocate an increase in taxes, including corporate tax. Likely, they will try to block the idea of  Republicans about the indefinite income tax cut. These projects have increased profits of companies and consumer confidence in them.

Some pro-republican analysts speak out about the representatives of Democratic initiatives like this: “They will criticize those points of the law that do not suit them, and seek funding for programs that they like.”

Without the approval of the Senate, it won’t be possible to repeal provisions but if Democrats make the deal and support other projects and agreements, then everything is possible.

One of the most pressing issues at the moment is a trade agreement between the United States, Canada and Mexico. Democrats will want to change certain conditions in it. This will delay the signing and lead to uncertainty for companies waiting for the contract to take effect in order to adjust the investment policy.

Having received the majority, Democrats are able to draw attention to the pricing of medicines. They will be able to organize checks for the most notorious cases and force the management of companies to report.

Experts believe that Republicans will not be able to cancel ObamaCare. This, in turn, can positively affect the field of medical services.

The Senate and the House of Representatives will be forced to find compromises on many points. This will also affect the plan to increase public funding for infrastructure. Citigroup think that it will increase GDP growth by 0.2% in 2020.

Brad Smith (Microsoft’s president and chief legal officer) expressed the opinion that Republicans and Democrats would have to unite in order to work out solutions in the IT sphere. This is about cyber attacks and the formation of a legal field in the sphere of personal data protection.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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