Jake Medwell is no stranger to capitalism and how it functions. With a string of entrepreneurial ventures under his belt, Medwell has founded several companies across a wide range of industries. Most recently, Jake Medwell founded investment firm, 8VC. With the change in political leadership and leading Democrat presence in Washington, Medwell shared his thoughts on foreseen legislative agendas and what that could mean for the financial markets.
In particular, many people have questioned the much talked about infrastructure bill proposed by democrats. According to Jake Medwell, while he believes Democrats are wishing for bipartisan support their agenda may move forward with or without Republican support. However, “infrastructure” may not include things normally considered infrastructure such as highways. Instead, according to Medwell, infrastructure may include things such as social and educational programs. Therefore it is important to understand the distinction between social and physical infrastructure. For Medwell, it isn’t certain exactly how much of the proposed budget would go to actual physical infrastructure, such as roads. This distinction, combined with a suggested corporate tax hike is primarily what makes the bill less likely to receive bipartisan support.
However, Jake Medwell suggests that the corporate may not be as high as many envision it to be. Instead the recent economic troubles faced by corporations might cap the corporate tax rate at around 24 or 25%. Although this is not significantly less than Biden’s proposed 28% tax rate, it could soften the burden to many corporations. Nevertheless, Medwell suggests keeping a close eye on the changes ahead.
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