A Trump Administration
Every election cycle, we’re subjected to drama of the highest (or lowest) form. However, presidential elections have real world consequences that impact American businesses and families. If Trump is elected president, his administration would definitely impact the business atmosphere from Main Street to Wall Street. This piece examines what his presidency might mean for small business.
According to a Trump policy piece, “No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes.”
A reduced tax burden will make it easier for small businesses to manage cash flow, purchase new equipment, increase wages, hire new staff, and take advantage of growth opportunities. Likewise, customers and clients will have more money to spend on goods and services.
For many small businesses the regulatory environment has limited growth and profit potential. A Trump administration would aim to roll back business regulations in an effort to stimulate job growth. In fact, Trump has stated that he will be “the greatest jobs producing president that God ever created.”
The ACA, or Obamacare, has been an economic burden for many small business owners. Trump has called the ACA, “a heat seeking missile that will destroy jobs and small businesses,” he wants to “replace it with something terrific, for far less money for the country and for the people.”
While the specifics of his plan to replace the ACA have yet to emerge, a plan to reduce the tax burden placed on small business owners would spur economic growth.
“America needs a bold, simple and achievable plan based on conservative economic principles…tax relief for all Americans [and] pro-growth tax reform for all sizes of businesses.”
Free trade has been a major policy issue for Trump. He pledges to impose a tariff of up to 45% on imports from China and up to 35% on imports from Mexico. This policy would drastically increase the cost of imported goods.
While this policy could eventually lead to the development of more manufacturing jobs in the US, its immediate impact may be harmful to those industries and professions that rely on affordable imports to drive its business.
A Trump administration could have drastic impacts on small businesses; some positive, some negative. His policies and positions don’t line up neatly with traditional GOP values, which is one of the reasons he’s been such a popular candidate.
His desire to simplify and lower taxes, reduce regulations, and replace Obamacare could provide much needed financial relief to an already overburdened small business community. However, his position on trade and immigration could negatively impact the American economy.
A Trump presidency would have immediate impact on the American economy. For small businesses that provide services to their communities, this impact would most likely be positive; lower taxes and less regulatory red tape. For small businesses that rely on foreign imports and immigrant labor the impact would most likely be negative; higher costs for goods and a limited employee pool.
In the coming weeks we’ll consider the impacts that Democratic front runner Hillary Clinton’s presidency would have on small business.