5 Ways Political Divisiveness is Detrimental to US Businesses

Tax Policy

Another contention that arises due to the US political divide is the varied tax policy. One political party may propose a Bill that will call for a cut in the taxes and the other may advocate an increase in the taxes. This rift creates further problems for the businesses operating in the country. Businesses have to take in consideration both the federal and state tax policies. The rise or cut in taxes prevent the businesses from predicting their growth during any specific period. Another factor of continually changing tax policy is the lack of consumer reliability. Majority of the consumers will not be aware of the consequences of change in political party. They can end up abandoning their loyalty towards a particular business because of the inconsistent pricing patterns of that company/business.

Healthcare Policy

The two major political factions in the United States have a contrasting healthcare policy. One may think that how healthcare policy can be detrimental to a business. Majority of the US companies provide healthcare benefits to employees. The businesses cannot provide consistent health benefits to its employees because any political party can call for a different healthcare policy. Recently, healthcare has been a cause of great debate in the US as people can be stripped off important health benefits due to change in the healthcare policy. If an employee’s contract states the provision of certain health benefits but the change in health policy causes the removal of such, the business/employer will have to manage on own rather than the state.

Regulatory Standards

The regulatory standards of one political party differ from that of the other and this creates an uncertain environment for businesses. One party may have strict regulatory standards and the company policy will be modified in accordance with that. This may change in the next two, four or six years and a business will have to revise accordingly to reap the maximum benefit out of the relaxed regulatory standards. The regulations put in place by the government directly affect the businesses and thus the economic growth of the country.