A new survey by PwC of top corporate executives uncovered worries about tax policy after the election.
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Protectionist policies would make companies less competitive, according to the respondents, with 71% of the executives polled saying that trade and tax policies will hurt U.S. competitiveness regardless of who becomes president. Executives see higher taxes and climate as policy risks under Vice President Kamala Harris, trade and foreign relations as risks under former President Donald Trump.
Around three-quarters (75%) agreed or strongly agreed that a 10% universal tariff on imports (as proposed by Trump) would significantly hinder their growth, while 75% agreed or strongly agreed that they would significantly reduce their domestic investments if there were a U.S. corporate tax rate of 28% (as proposed by Harris). Executives see different policy risks under Harris, with 43% citing U.S. economic policy and 36% citing U.S. corporate tax policy.
Company decision making hinges on the election, with 72% of the respondents saying they would be using tax credits to fund investments.
Under either administration, at least 78% of executives expect to either maintain or increase their current levels of investment in the areas PwC asked about, but there were slight differences in investment strategies under each administration.
The executives polled said they would increase investments in AI with either outcome, 52% for Harris and 53% for Trump, respectively. However, if Harris wins the election, 56% of executives said they would increase investments in compliance and regulatory, compared to 47% under Trump, and 55% would invest more in sustainability, compared to 46% under Trump. More than half (53%) of the executives surveyed said they would increase investments in capital projects in the U.S. if Trump wins the election, as opposed to 49% under Harris.
"Executives are contending with an increasingly complex and volatile business landscape, further complicated by the upcoming election," said PwC US advisory leader Tyson Cornell in a statement. "Looking forward, they are actively scenario planning to strategically balance risks and opportunities, positioning them to emerge stronger from any policy changes that may affect their business."
