Now the dust has started to settle after Donald Trump’s presidential victory last week his to-do list became slightly clearer. Obviously, his promise to build a wall along the Mexican border, part of his plan to toughen up on immigration and security, will be at the very top of that list. However, in an interview over the weekend the President-elect said he would accept a fence instead of a wall on certain sections, claiming ‘But certain areas, a wall is more appropriate. I'm very good at this, it's called construction, there could be some fencing’. In the same interview Trump also insisted that he will deport up to 3 million undocumented immigrants with criminal records immediately upon taking office, another one of his core pledges during his campaign. On CBS’s 60 Minutes he said, ‘What we are going to do is get the people that are criminal and have criminal records, gang members, drug dealers, where a lot of these people, probably two million – it could be even three million – we are getting them out of the country or we are going to incarcerate’. He also reassured his supporters on gun crime and abortion laws.
Another of Trump’s election promises was to reduce corporate tax rates in the US from the current level of 35% to as low as 15% to encourage US multinational companies to relocate back to America. Trump’s senior economic advisor Stephen Moore reiterated this saying last week, 'I believe that when we cut these tax rates – we’re going to cut our business tax rate from roughly 35% down to roughly 15%- 20% – if you do that you are going to see a flood of companies leaving Ireland and Canada and Germany and France and they are going to come back to the United States,' adding that the move will have a ‘very high’ impact on jobs. The problem is that although the US headline corporate tax rate is 35% at the moment, once you take into account the tax deductions available, the effective rate is already much lower.
Trump is also said to be eyeing the $2.5tn held offshore by US companies in foreign profits. He wants to give companies a one-time opportunity to repatriate this money by offering a 10% tax rate. This idea is not new, the problem over the last few years has not been that of both Republicans and Democrats wanting to bring the money back, they would have loved to tap US companies overseas profits, however they have had different ideas on how to do it. Now that the Senate and the House of Representatives are controlled by Republicans, Trump and his team might be able to find way to end the gridlock.