by
Hans Izaak Kriek*
The new Congress began already to work and Donald Trump will be starting after his inauguration with his work as 45th president of America. Donald’s name is in the news every day and in the media. He promised a lot during his campaign and the whole world is waiting how he will act in politics. Here are the big themes that business leaders will want to monitor, especially between now and May 1, the end of Trump’s first 100 days.
The most important issues: Obamacare - tax reform - infrastructure - immigration.
Obamacare
GOP leaders in the House and Senate are pushing through a budget that will start the process of repealing the Affordable Care Act. There hoping to be able to have it on Trump’s desk by the time he takes office next week. But when it comes to replacing the law they’ve rallied against for the last seven years; Republicans are nowhere near a consensus. I wonder if there is anyhow a replacement plan ready to go? Trump pushed Republicans to offer such a plan as soon as possible, rather than wait years like some lawmakers initially envisioned.
There’s little Democrats in either chamber can do to stop scaling back the law they enacted seven years ago. The budget measure being used as a vehicle to begin the repeal process only requires a simple majority under Senate procedure, depriving Democrats of filibuster power. Speaker Paul Ryan (R-Wis.) promises that the repeal of Obamacare will happen at the same time Republicans approve a replacement program. But probably that will take more time than expected.
Tax reform
Legislation to reform the tax code is high on the GOP priorities list. The House Republicans tax proposal, released as part of the ‘Better Way’ platform, would lower tax rates for individuals and businesses, eliminate some existing tax preferences and revamp the IRS. Consideration of tax reform legislation could come by mid-April, when the House and Senate Republicans roll out another budget by the April 15 deadline. They want to use one budget to repeal the healthcare law and another for tax reform so they can take advantage of a procedure that bypasses a Senate filibuster.
Infrastructure
Investing in infrastructure was one of Trump’s important campaign issues. Legislation to spend money on the nation’s roads, bridges and airports likely won’t be unveiled until later in Spring, after Trump’s 100th day in office. But it seems there will be a big infrastructure package immediately after the first 100 days’ period.
Trump has floated a $1 trillion proposal that would offer federal tax credits to private entities investing in infrastructure projects. A good idea, and top Democrats expressed already openness to working with Trump on such a proposal, considering it as one area of potential common ground with the new president.
Immigration
A very important case will be the wall along the Mexican border. Trump promised that Mexico would pay for the wall, a notion dismissed by the Mexican government. GOP leaders and Trump’s transition team have discussed using taxpayer dollars to begin work on the wall, and then forcing Mexico to pay back the money later.
Republicans could turn to a 2006 law that authorised construction of a more than 700-mole ‘physical barrier’ on the border with Mexico. Since the law never expired, Trump and congressional Republicans could pick up where the Bush administration left off. Adding the funding to a must-pass spending bill would force Democrats to either accept building the wall or risk a government shutdown. Such a clash would serve as a test for both Democrats opposition strategy and Trump’s ability to keep a central campaign pledge in high-stakes negotiations.
* Hans Izaak Kriek is US correspondent and political commentator for European Business Review and editor-in-chief of Kriek Media.
By: N. Peter Kramer
