Many businesses which form the backbone of the US economy are worried about the Trump tax reform plan and the possible negative effects it could have on the economy.
Sectors of the US economy such as construction, wind power, and electric cars might experience job shrinkage and harm done if the Republican tax plan is enacted as it is now.
The effects of the tax plan, although only in its earliest stages and nowhere near law, have already been felt in the marketplace. Vestas Wind Systems, the world’s largest manufacture of turbines used in wind power, saw its stock tumble by 9 percent. Tesla, the leading electric car maker had a stock downturn as well, closing lower by 6.8 percent. The Trump plan includes cutting the $7,500 tax break for the purchase of an electric car.
Homebuilders are also up in arms over the tax reform. The National Association of Home Builders are taking aim at the Republican’s proposal to remove the tax credit for mortgage payments. The chairman of the association, Granger MacDonald, said that congress was “ignoring the needs of America’s working-class families and small businesses.”
“The bill eviscerates existing housing tax benefits by drastically reducing the number of homeowners who can take advantage of mortgage interest and property tax incentives,” he said.
Some stocks of homebuilders’ companies lost ground. Toll Brothers fell almost 6%, among the worst casualties.
Others are happy with the plan. The US Chamber of Commerce endorsed the plan cautiously, saying the plan was “exactly what our nation needs to get our economy growing faster”, but “a lot of work remains to be done to get the exact policy mix right.”
In the Los Angeles design studio of Tesla Motors, a crowd of local owners of one of the top electric cars around today, Tesla’s Model S, is ready to see a unique demonstration of the powers of their car.
Onto the stage outfitted with wheel guides and a pit like the kind you see in a Jiffy Lube shop rolled the Tesla electric car. At precisely the same moment a live video feed of an Audi pulling into a traditional gas station appeared on a big screen next to the Tesla Model S. On screen a timer starts counting off the seconds while the Audi’s driver begins to pump gas into his car and robot arms under the stage begins to change the Model S’s batter pack.
By the time the counter gets to 93 seconds the Model S is done, rolls off the stage, and another Model S pulls over the pit and begins to have his batter changed as well. Meanwhile the Audi is still pumping gas. Another 91 seconds pass and the second Model S finishes having its battery changed just as the Audi’s gas tank reaches its capacity 20 gallons.
This demonstration, which shows just one of the ways how electric cars work, is convincing evidence of the electric car’s worthiness. At the end of the demonstration CEO Elon Musk commented:
“There are people that take a lot of convincing. Hopefully, this is what will finally convince people that electric cars are the future.”