The upcoming U.S. presidential election is drawing closer, and the country and its businesses are facing the possibility of two very different outcomes. Former President Donald Trump and Vice President Kamala Harris are the candidates, each with their own set of policies that could have a significant impact on various sectors of the economy.
For airlines, banks, electric vehicle manufacturers, healthcare companies, media firms, restaurants, and tech giants, the result of the election could mean drastic changes in the regulations they face, the mergers they can pursue, and the taxes they pay.
During his previous term, Donald Trump implemented policies such as slashing the corporate tax rate, imposing tariffs on Chinese goods, and reducing regulations. If reelected, he is expected to continue these measures, aiming to create a more business-friendly environment.
On the other hand, Vice President Kamala Harris has proposed raising the corporate tax rate to 28% from the current 21%. She is likely to follow in the footsteps of President Joe Biden, focusing on consumer protection and stricter regulations across industries.
The outcome of the election will also impact key government bodies such as the Treasury, Justice Department, Federal Trade Commission, and Consumer Financial Protection Bureau, as the winner will make appointments that will shape policy decisions.
For airlines, the election could influence issues such as consumer protections, industry consolidation, and the cost of building aircraft in the U.S. The current administration has focused on enhancing air traveler protections and fighting industry consolidation, while the previous administration took a more hands-off approach.
In the banking sector, big banks like JPMorgan Chase are facing new regulations under the Biden administration that could significantly impact their revenue. A Trump victory could result in a rollback of these regulations, providing relief to the industry.
In the electric vehicle sector, the outcome of the election will determine the future of regulations and incentives for EVs. Swing states like Michigan, which rely on the auto industry, could see major changes depending on the election results.
Overall, the stakes are high for corporate America as they await the outcome of the 2024 presidential election. The policies and decisions made by the next administration will have a lasting impact on businesses across various sectors. Investing in the future can be a daunting task, especially when political climates are uncertain. With the upcoming election, many investors are hesitant to make any decisions until they see how things unfold. The divide between Republicans and Democrats on key issues such as electric vehicles (EVs), healthcare, and media mergers has left investors in a state of limbo.
One of the key issues at play is the future of EVs in the United States. Republicans, led by Trump, have been critical of EVs, arguing that they are being forced upon consumers and could harm the automotive industry. Trump has promised to roll back emissions standards and incentives that promote the production and adoption of EVs. On the other hand, Democrats, including Harris, have historically supported EVs and have proposed incentives to encourage their adoption.
In the healthcare sector, both Harris and Trump have proposed changes to the system to lower costs and improve access. Harris, in particular, has outlined plans to expand provisions under the Inflation Reduction Act to lower healthcare costs for Americans, including capping out-of-pocket drug spending and negotiating drug prices with manufacturers. Trump, on the other hand, has not provided specifics on his plans for healthcare reform.
In the media industry, mergers and acquisitions have been a hot topic, with many companies looking to consolidate in the face of changing market dynamics. Media executives have expressed concerns about the regulatory environment under the Biden administration, which they believe has chilled deal-making. The outcome of the election could potentially impact the regulatory environment for media mergers.
Overall, the upcoming election is likely to have significant implications for future investments. Investors are advised to closely monitor the political landscape and wait for more clarity before making any decisions. The outcome of the election could shape the future of key industries and influence investment opportunities in the years to come. A recent ruling by a federal judge has blocked the sale of publishing giant Simon & Schuster to Penguin Random House under President Biden’s administration. However, in a surprising move, Amazon’s acquisition of MGM was approved, signaling a complex regulatory environment for media industry dealmaking.
Marc DeBevoise, CEO of Brightcove, a streaming technology company, expressed his belief that regardless of the election outcome, the media industry will continue to face tight regulatory scrutiny. When major media and tech assets change hands, there is an increased focus on potential bias on the platforms.
Jonathan Miller, CEO of Integrated Media, highlighted the importance of diversity of voices in the media landscape. However, with Elon Musk’s recent purchase of Twitter and subsequent changes to the platform, concerns have been raised about skewing platforms to personal preferences rather than business needs.
Since Musk’s acquisition of Twitter and its rebranding as X, he has made significant changes, including reinstating previously suspended accounts, including that of former President Trump. Musk’s public endorsement of Trump and the billionaire’s involvement in Republican causes have raised eyebrows, with Trump suggesting a potential role for Musk in his administration if reelected.
Under Biden’s administration, there has been a notable shift towards being more amenable to journalists, in contrast to Trump’s adversarial stance during his term. The media landscape is also closely watching the developments surrounding TikTok, with lawmakers expressing concerns about the platform’s Chinese ownership posing national security risks.
Biden signed legislation earlier this year giving Chinese parent company ByteDance until January to find a new owner for TikTok or face a U.S. ban. TikTok has pushed back against the legislation, arguing that it violates the First Amendment. Trump, who previously sought to ban TikTok through an executive order, has now shifted his stance to support the platform as a competitor to Meta’s Facebook.
In the realm of restaurants, both Trump and Harris have endorsed plans to end taxes on restaurant workers’ tips. While Trump’s campaign has provided few details on how this would be achieved, Harris has proposed exempting workers making $75,000 or less from income tax on tips, while still subjecting the earnings to Social Security and Medicare taxes.
The tech sector is also facing significant challenges, particularly in the realm of artificial intelligence. Generative AI has emerged as a major technological advancement, raising privacy and safety concerns. Harris has emphasized the importance of balancing public protection with innovation, while Trump has committed to repealing executive orders related to AI regulation.
Additionally, a potential Trump administration could challenge SEC rules requiring companies to disclose cybersecurity incidents, a move that has been criticized for increasing cybersecurity risks. The fate of tech dealmaking and regulatory oversight will also be at stake in the upcoming election, with many in the industry calling for changes at regulatory bodies like the FTC.
As the election draws near, the media, tech, and restaurant industries are closely monitoring the policy implications of the potential outcomes, which could have far-reaching effects on their operations and regulatory environments.
Former Venture Capitalist Vance Praises Khan’s Job Performance
Joshua Vance, a former venture capitalist turned politician, recently expressed his admiration for the job performance of FTC Chair Lina Khan. In a video interview conducted before his selection as Donald Trump’s running mate, Vance commended Khan for her work, stating that she was “doing a pretty good job.”
Lina Khan, who was nominated by President Joe Biden in 2021, has been a vocal advocate for antitrust measures against tech giants such as Amazon and Meta. She has also announced plans for the Federal Trade Commission to investigate AI investments made by industry leaders like Alphabet, Amazon, and Microsoft.
With a background in venture capital, Vance’s endorsement of Khan’s leadership highlights the bipartisan recognition of her efforts to address monopolistic practices and promote fair competition in the tech industry.
As the FTC continues to tackle challenges in the digital economy, Khan’s proactive stance on antitrust issues and AI regulation has garnered attention and support from policymakers across the political spectrum.
Stay tuned for more updates on the latest developments in tech regulation and antitrust enforcement under Chair Lina Khan’s leadership at the Federal Trade Commission.
