The Good Economist November 2016 | Page 3

Under Trump’s tax plan, business taxes will be cut. The corporate tax rate will be reduced to 15 percent, and unincorporated businesses would benefit from the same lower 15 percent rate as corporations, instead of reporting business income on their individual returns, as they do today.

Simplifying Regulations

Trump is calling for a temporary moratorium on all new federal regulations to give businesses a break. Small business is increasingly hurt as the number of government regulations increase. Regulatory compliance exerts a disproportionate burden on small businesses. According to a 2014 report commissioned by the National Association of Manufacturers, companies with less than 50 employees experience a regulatory cost 17 percent higher than that of average firms.

Raising the Minimum Wage

Trump promises to raise the federal minimum wage to $10 from its current level of $7.25. Higher incomes for working people increase consumer purchasing power, strengthening spending and the economy. However, it is fair to note that proposed cuts to social programs could offset these wage gains as families are confronted with higher healthcare and food costs.

Renewable Energy

Trump has embraced an “all of the above” strategy, with emphasis on fossil fuels. However, his preference for coal may be tempered by economic forces. A surplus of fossil fuels means that production of coal in America has declined by almost 25 percent since its highs in 2008. During the same time, the cost of solar and wind power, and of the storage needed to smooth other variations, have dropped.

Furthermore, a major part of Trump's coalition, agricultural and rural groups, support rural energy. Farmers, ranchers, farm co-ops, and businesses want to minimize costs or generate new income through energy. Solar is clearly on the move and can be deployed throughout rural America from farm fields to homes and business rooftops. And the Distributed Wind Energy Association estimates that creating more than 100,000 rural jobs over the next decade is entirely achievable.

Climate Change

The Paris Agreement, which came into effect on November 4 of this year aims, to limit global warming “well below” 2 degrees Celsius. While Trump expressed a desire to dump the agreement, the process to withdraw, as mandated by international law, would take at least four years. Perhaps, a realization of this political reality may explain Trump’s moderation of his stance in recent days.

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