It is not every day that Kentucky Senator Rand Paul and President-elect Donald Trump see eye-to-eye on policy. As we have seen in the enthralling saga of Congressional Republicans racing to fast-track a risky Obamacare repeal through both houses in time for next Friday’s Inauguration, the beltway is on edge anticipating a thousand different outcomes.
One outcome that has stood out is the level of potential savings in future tax collections for Americans, specifically millennials. In fact, some view that such levels have very high potential in the new era GOP-unified government. A columnist for Investor’s Business Daily highlighted that under Trump, millennials could experience monstrous potential in the economic segments of the country with a lessened tax burden. An Obamacare repeal wasn’t the only coming reform that could bolster growth.
Former Reagan-era economist Arthur Laffer has said that Trump’s tax cuts and reforms, in general, would benefit the economy.
“We are looking at a manifestation of a revolution that is amazing and profound,” Laffer said to a small gathering of onlookers at a Texas country club earlier this week.
In particular, Laffer supported Trump’s plan to cut the corporate income tax rate from 34 percent to 15 percent. He also referenced that the United States currently has the highest corporate income tax rate out of the entire 35-member Organisation for Economic Co-operation and Development (OECD). Cutting the rate will promptly provide growth in the economy, directly providing a base for entrepreneurial opportunities for the millennial generation. Laffer even views that the Obamacare repeals, with a contingency plan, could provide a more consumer-centric health care environment in the marketplace.
The World Bank even added credibility to the argument that Trump’s cuts will affect the national and international economies. In the World Bank’s annual growth report, they stated that Trump’s tax reforms and a total economic plan could compel growth upwards of 3 percent next year, alone, and based on other reports, force a doubling in American GDP.
Considering the domestic and international economic impact millennials have, this is good news. Millennials not only make up the largest generational group in the United States; they also make up a plurality in the American workforce. Jobs for millennials are also on the rise as professional opportunities are increasingly being adapted to the Internet-centered generation. This age group is also more inclined to take up freelancing rather than traditional employment to have more flexibility in schedules, type of work, and how they work.
The rise of the sharing economy with companies like the home sharing is impacting the economy that is driven by millennials. Powerhouse Airbnb and the modern taxicab companies, Uber and Lyft, are redefining travel, both domestic and abroad.
Despite all of this, though, the new presidency vowed to be “business friendly.” That means the administration needs to ensure that promises are kept to promote a strong, high-tech, and industrious economy that the President-elect painted vividly on the campaign trail. A lot of people are optimistic for the Trump White House. Millennials should be too because of the shrinking of government that is on the agenda. If government shrinks and leaves the economy less tax-burdened and regulated, economic growth will occur.