Why Donald Trump’s Business-First Policies Trump Harris’ Consumer-Centric Approach

The election of President Donald Trump to a second term was a victory for business and investment – two important factors for economic growth. His campaign promises reflected a more pro-business perspective, promising support for business and business expansion and in stark contrast to Vice President Kamala Harris’ consumer-centric approach, which seemed to ignore the important balance between investment and spending.

Donald Trump’s business-driven agenda

A cornerstone of President Trump’s first term was the Tax Cuts and Jobs Act of 2017 (TCJA), which clearly focused on empowering small businesses, entrepreneurs and investors to put more money back into their businesses. The TCJA was packed with pro-growth policies, including a 20% qualified business income (QBI) deduction, the ability to fully capitalize on equipment purchases and a reduction in the corporate tax rate from 35% to 21%. During the campaign, President Trump proposed to further this by reducing the tax rate to 15%, emphasizing his commitment to encourage corporate investment.

These business and investment foundations have worked. With a lower tax burden and targeted incentives, entrepreneurs and businesses made huge investments in the US – buying more equipment, adding jobs and creating goods and services that were much needed by society. Extending the QBI deduction and increasing it to 25-30% will also stimulate trade, especially if the deduction applies to all types of businesses, including service industries.

President Trump also recognizes that research and development play an important role in innovation and economic growth. By advocating a permanent reduction in the rate of the bonus, Trump aimed to align the US with other nations that offer full tax deductions for machinery investments. However, this commitment should extend to R&D tax policies. Many other countries have much better R&D tax incentives than the US, which puts our businesses at a disadvantage.

Related: 3 Big Reasons Why a Second Term of Donald Trump Will Benefit My Business and Increase Profits

Unlike Kamala Harris’ consumer focus

The Harris-Walz campaign took a different approach.

Throughout the campaign, Vice President Kamala Harris has emphasized consumer protection. His proposals included price controls and programs to boost consumer spending, prioritizing immediate consumer benefits over long-term economic growth.

Price controls often sound attractive from the outside but, in reality, they distort the market, often preventing businesses from investing in areas where their profits will lie. This stifles innovation and, over time, reduces global competition.

Vice President Harris’ focus on a consumption-driven economy would have relied heavily on short-term spending. Without investment in infrastructure, technology and R&D, the economy is vulnerable to stagnation. In addition, he proposed raising corporate taxes to 28% and corporate capital gains taxes to 33%. The money that would result in higher taxes will not be available as capital for businesses to expand, hire and innovate, ultimately stifling economic growth.

Related: 10 Key Ways Donald Trump’s Second Administration Could Affect Your Taxes

A call to focus on pro-business policies

In addition to being heavily pro-business, President Trump also floated his share of consumer-oriented policies during the campaign. Proposals to eliminate income taxes on tips and overtime pay were popular among large and important segments of the electorate but could wreak havoc on business owners. The tax change will create a huge disparity between workers in the same business, with hosts and chefs paying tax on their full income while servers don’t. It may also create the unintended benefits of people switching to less comfortable (and more time-consuming) work schedules.

Based on his campaign rhetoric, President Trump seems certain to use tariffs as leverage with America’s trading partners, especially China and Mexico. As all taxes do, that will hit the pockets of consumers and businesses alike.

As President Trump begins his second term, he and Congress must remain focused on policies that strengthen business and investment. This is a proven path to sustainable economic growth and prosperity.

It is also not a side position. The first time a US president promoted investment through economic policy was when President John F. Kennedy signed legislation creating an investment tax credit in 1962, encouraging businesses to buy equipment during a recession. President Ronald Reagan also used economic policy to boost investment, adding significant gains to real estate investment in 1981.

President Trump and the next Congress have an opportunity to add to this great legacy. They just need to stay focused and united on the right policy changes. Lowering corporate tax rates, encouraging investment and supporting entrepreneurship and innovation would go a long way toward improving US competitiveness with the rest of the world. Entrepreneurs are the lifeblood of the American economy.

Let’s not let this time pass.