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.”