Why Cantor Fitzgerald CEO Howard Lutnick Backs Donald Trump

As the U.S. presidential election draws near, the battle for endorsements heats up. Business leaders are choosing sides, and one prominent figure making waves is Howard Lutnick, CEO of Cantor Fitzgerald. In a bold statement, Lutnick threw his support behind Donald Trump’s economic policies, signaling clear opposition to Kamala Harris’ tax-heavy proposals.

From the get-go, Howard Lutnick has been vocal about his concerns with Harris’ economic policies. One of the biggest sticking points for him is her proposed “Transaction Tax.” Harris has advocated for a tax on financial transactions, which would directly impact Wall Street and businesses like Cantor Fitzgerald. Lutnick believes this policy would stifle investment and innovation, especially in industries reliant on rapid, high-volume trading.

News / Opposing the Vice President’s ‘Transaction Tax’ the billionaire CEO says that is “crazy” – and backs Donald Trump’s economic agenda ahead of the 2024 elections.Lutnick argues that this tax would increase costs for everyday investors and businesses alike, ultimately hindering growth. According to him, a transaction tax could also drive financial activity out of the U.S. to countries with more favorable tax policies.

He asserts that the American economy, especially its financial sector, relies on being competitive globally. Introducing such taxes could make the U.S. less attractive to investors, which Lutnick sees as a recipe for economic slowdown.

Howard Lutnick Endorses Trump’s Tariff Policies

On the other hand, Lutnick has praised Trump’s economic agenda, particularly his tariff policies. Trump’s proposal of imposing a universal 10% tariff on all imports and a 60% tariff on Chinese goods has gained Lutnick’s approval. He views these tariffs as necessary to protect American industries and bring manufacturing back to the U.S.

For Lutnick, Trump’s aggressive stance on China is a strategic move to strengthen America’s position on the global economic stage.

Lutnick sees Trump’s tariffs as a way to balance trade, ensuring that American workers and businesses are not undercut by cheaper foreign competition. While critics argue that tariffs could lead to price hikes for consumers, Lutnick believes the long-term benefits – job creation and a more self-sufficient economy – outweigh the short-term costs.

In his view, these tariffs would help revitalize American manufacturing, boost employment, and reduce the trade deficit, making America stronger economically.

Harris’ Tax Increases Concern Lutnick

Perhaps the most controversial aspect of Harris’ economic platform, from Lutnick’s perspective, is her proposed tax hikes on wealthy households and corporations.

RT / Vice President Kamala Harris has hinted at increasing the capital gains tax for households earning over $1 million from 20% to 28%, as well as implementing a 25% minimum tax on wealthy households. Something Lutnick vehemently opposes.

For Lutnick, these policies could severely dampen investment, particularly in sectors like technology and healthcare, where startups rely on capital from high-net-worth investors.

Lutnick has raised concerns that higher taxes on capital gains would deter wealthy individuals from investing in promising companies. He cites an example of a healthcare start-up valued at $200 million that would face a significant financial burden under Harris’ unrealized capital gains tax.

This company would owe $50 million, which Lutnick argues would stifle its growth and limit its ability to innovate. According to Lutnick, such tax policies would discourage investment in the very industries that drive America’s future economic growth.

In contrast, Trump’s policies, which focus on reducing regulatory burdens and keeping taxes low, resonate more with Lutnick’s pro-business outlook. He believes that fostering a climate where businesses can grow without excessive taxation will lead to more innovation, job creation, and overall economic growth.