The Obamacare repeal, NAFTA revocation, tax cuts, infrastructure investments, and other foamy campaign promises that are now on the president’s to-do list for his first 100 days in office might take longer time than estimated. Economists warn that hurdles in Congress along with infighting in Washington might even bar the new administration from carrying out many of these plans.
The president’s economic plan which won the hearts and votes of millions of supporters is still in place as his agenda for his first 100 days in office largely suggests.
In addition, Trump has shocked many of his opponents and pleasantly surprised his supporters after he passed comprehensive legislation within less than a month in office. Wall Street however is still waiting for those promised tax cuts but markets need to have patience as there is a lot of disagreement within the GOP itself.
U.S. business are also waiting for a friendlier environment to do business spurred by deregulation, tax cuts, and larger infrastructure spending.
Experts think tax cuts is one of the thorniest issues Congress now must face. Supporters of the measure claim lower rates, closed loopholes, and a major tax reform would make the country’s economy more competitive. Opponents argue that those tax cuts must be backed by spending cuts to prevent colossal annual deficits, a thing Republicans don’t want.
Trump administration said import tariffs would offset much of the revenue loss. Yet major U.S. companies such as Target and Walmart rallied against the measure, while consumer advocacy groups say the U.S. consumers would bear the added cost.
The president estimated that the tax cuts could become reality by the end of the year. Economists, however, think Trump is overly optimistic. They pointed out the Senate is locked in a “bitter infighting” on the issue.
Obamacare repeal is another thorny issue on the agenda. The GOP badly wants President Obama’s signature healthcare law gone, but it must come with a replacement first. The party is very divided on this issue too, with some Republicans now saying that it is a better idea to “repair” the law, not repeal it.
Trump promised to come up with a replacement plan the day his Secretary of Health and Human Services is confirmed for the Cabinet position. But in recent weeks, the new administration said the replacement plan wouldn’t be ready by the end of 2017.
The White House must find a way to allow 20 million Americans to keep their health insurance while not overburdening the government or passing the extra costs to patients.
On the campaign trail, Trump said he planned to boost infrastructure spending to $1 trillion. Yet the ambitious infrastructure program, which could spur economic growth, heavily relies on private funds. So, taxpayers might be forced to fork out more money as user fees. Congress is also very unlikely to approve the plan as more taxpayer spending would just deepen the national debt.
When it comes to NAFTA, experts say Trump can withdraw from the trade pact on his own. However, the potential economic damage is enormous. Consumer prices could skyrocket if Trump sets import taxes on goods coming from the U.S. major trading partners such as Mexico and China. This way, Trump thinks companies will move production back to the U.S. to avoid tariffs.
Some economists however disagree with the plan, while others think it could take years for the jobs to return to the U.S. Nevertheless, there are more and more experts that think Trump is just bluffing to help himself negotiate a better deal.
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