What Could The Georgia Runoffs Mean For Businesses?
After the drawn-out battle of the Georgia Senate runoff election, the Democratic challenger Raphael Warnock emerged victorious over the Republican incumbent Senator Kelly Loeffler while Jon Ossoff has also defeated the Republican incumbent Senator David Perdue to bring the Democrats to 50 total seats in the Senate which is the majority as Kamala Harris is the one to break the tie.
The Democrats now control the House and the Senate as well as the Presidency with Joe Biden’s hard-fought victory over Donald Trump. The Democratic party is known to be slightly more opposed to business agendas and will most likely implement a number of tax raises as well as regulations on labor, energy, and environmental impacts. Citing budget reconciliation, they can pass major tax increases which could slow economic recovery depending on the use of the acquired tax funds. If correctly allocated, there’s no reason that higher taxes have to be negative.
A decent amount of Trump’s recent executive actions could be reversed which had previously been aimed at benefitting businesses instead of the general population. These reversals could include strengthening environment and energy regulations which would be beneficial for our world as a whole but still come with their individual costs.
Democrats have also mentioned labor regulations such as a $15 national entry-level wage which phases out some low-margin workers which a lot of people rely on to bring in any source of income. The results of the runoff election and the course of our nation towards the end of 2020 show us that there are negatives and positives that come with every change. Through different perspectives, various aspects of the changes seem better or worse depending on personal circumstances.
The end of 2020 and the beginning of 2021 have shown us that change is imminent and that while one door might close, others open in different places. The key is to continue searching and working hard to secure a future that is filled with prosperity and success which hopefully will be plentiful in this upcoming year.