How Trump’s Election May Affect the Affluent
The election is over. President-elect Donald Trump is acting swiftly to build a new administration that may breathe new life into the American economy. Love him or hate him, there is much to say about Donald Trump. He is the first person without military or government service in his background to be elected to the office of president in American history, which means he is no Washington establishment insider. This alone could be a boon to shifting the status quo and draining the political swamp that has stagnated the American economy. As an unquestionably proud American, Trump staunchly supports our military, and he is determined to stop the flow of illegal immigrants into the United States. Most importantly for this conversation, Donald Trump is a true capitalist—a businessman and self-made billionaire who believes strongly in free enterprise.
Trump is sensitive to and invested in reducing the burdensome regulations that impede manufacturing, destroy jobs, slow the economy, and reduce spending. He has been on the receiving end of the luxury tax, the death tax, and the income taxes that unfairly target the affluent. Now that he has been elected, we foresee possible tax reductions on the affluent, especially those making over $250,000/year. Why? Simple economics. Trump understands that many who are affluent became so through entrepreneurship, personal industry, and wise investments. Greater access to discretionary funds promotes spending, especially for luxury and leisure items such as travel, private club memberships, and second homes. Spending boosts sales taxes revenues, creates jobs, spurs economic development, and brings greater stability to the marketplace. In short, healthy spending creates a healthy economy. At the time of this writing, the stock market has already jumped over 1,000 points since the election as a sign of a positive market outlook.
President Obama promised his government-provided health care would decrease health care costs by an average of $2,500 per family. In reality, the costs have more than doubled, severely impacting families and businesses, which many Club Managers Association of America (CMAA) members will attest to. President-elect Trump promised to repeal Obamacare during his campaign. If he makes good on his promise, both business and healthcare would see positive changes.
Trump owns 17 golf clubs around the world, and seven of them are less than a 30-minute flight away from the capital on Air Force One. Imagine the productive relationships with our foreign allies that can be built and strengthened on those golf courses over the next four to eight years. Trump will likely ensure strong relations with the U.K., similar to his existing business relationships overseas.
In short, Donald Trump may be a man for all seasons: successful entrepreneur, skillful negotiator, industrious worker, and visionary leader. He is liked by those who know him, and he has the self-confidence and conviction to stand up to his detractors—especially those who threaten America. Like our club members, Trump appreciates the finer things life has to offer and has earned the right to enjoy them. In our book, that’s a hole in one.