Stuff Executives Should Know: Obama’s Plans
BusinessWeek had an informative article of what we know of Obama’s plans once he takes office and how it might impact the business environment. Some informative quotes from “Obama’s Action Plan“.
“Obama wants lenders to renegotiate loans for homeowners in default.”
“Obama has pledged to do more to head off foreclosures, and he may move to rid bank balance sheets of toxic mortgage assets.”
“Obama’s plan to raise capital gains and dividend taxes on high-end earners is likely to remain on the back burner.”
“Obama’s plans to lower the overall corporate rate from today’s 35% but also to end loopholes. He wants to revoke the rule that lets U.S. multinationals put off paying taxes on foreign income until they bring it home.”
While what people say is often different from what they do, we can make some pretty accurate predictions from what Obama is likely to do. As much as a trillion dollars will be spent on the stimulus in the next two years according to BusinessWeek which could speed up the recovery but also put the country deeper in debt which can lead to other problems. The housing sector should be helped more with the new administration compared to the current use of the bank bailout which is primarily going to banks rather than helping people facing foreclosures. Increased government investment in green technology will mean growth in that sector, while companies that use a lot of energy will likely face tougher regulation as it relates to carbon dioxide output. Since Obama appears to me more likely to spend the stimulus on infrastructure, green tech, healthcare reform, and schools, this may not lead to a boost in consumer confidence in the near term. Executives should take notice of the clues of what changes lie in store for the next four years, and start preparing for them now.
Image Source: Allison Harger
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