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78 The PCB Magazine • February 2017 may be more than a mere bump. Businesses are excited about the upcoming potential to shed the restrictive tax and legislation constraints that have suppressed growth for a decade. If these campaign promise are kept, markets should continue to support this policy change of the guard. A sweep of government is gener- ally embraced by markets, as it gives more abil- ity to provide policy clarity and affect change. A pro-growth and pro-investment agenda, ac- companied by the ability of Congress to break years of gridlock, should drive business growth, which will stimulate the economy. Tax Policy The United States has the highest corporate income tax rate among the 35 industrialized nations of the Organization for Economic Co- operation and Development (OECD). The com- bination of federal and state corporate taxes put the U.S. at 39%, which is tied with Puerto Rico for second highest rate in the world with only the United Arab Emirates (55%) higher. The low wages of low cost countries are mostly blamed for U.S. companies leaving to set-up shop on foreign land, but, in my humble opinion, the tax rate is the biggest factor. The other side of this coin is that our corporate tax rate make it cost-prohibitive for foreign organizations to put up plants in the U.S. The personal income tax situation is even worse; per the Pew Research Center, the top 20% of income earners pay 65% of all taxes, while the bottom 20% have negative tax rates, meaning they pay no taxes but receive tax refunds and/or benefits. While one-percent- ers take a lot of heat for "not paying their fair share," the fact is that they pay roughly 40% of all taxes. Why is this important to business? Be- cause a majority of the high-earners are entre- preneurs and small business owners, which as discussed earlier, are the creators of a majority of net new jobs in the U.S. The Trump tax reform vision currently looks like this: • Reduce taxes across-the-board, especially for working and middle-income Americans who will receive a massive tax reduction • Ensure the rich will pay their fair share, but no one will pay so much that it destroys jobs or undermines America's ability to compete • Eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America, create new opportunities and revitalize our economy • Reduce the cost of childcare by allowing families to fully deduct the average cost of childcare from their taxes, including stay-at-home parents How will this be accomplished? Some of the key actions of the Trump Plan are: • Collapse the current seven tax brackets to three with ~20% tax cut • Repeal the death tax with provisions to protect against abuse • Above-the-line childcare deduction for children under age 13 • Allow individuals to establish Dependent Care Savings Accounts (DCSAs) • Lower the business corporate tax rate from 35% to 15%, and eliminate the corporate alternative minimum tax Economic & Deregulation Policy The electronics industry, and specifically printed circuit fabrication, is one of the most heavily regulated business segments. The EPA, RoHS, REACH, Dodd-Frank, Sarbanes–Oxley, Conflict Minerals, ad nauseam, are overburdening our industry, adding cost while not adding value. Figure 6: Dow Approaches 20,000. (Source: Reuters) WHY TRUMP WILL BE GOOD FOR OUR INDUSTRY