What Donald Trump's Presidency Means for Small Businesses
I debated writing about this topic for the fear of entering some ridiculous political debate. But I’m kind of in this habit of punching fear in the face. So let’s talk about Donald Trump. Particularly, what Donald Trump’s presidency means for small businesses.
It’s not important to me which side of the fence you’re on. And I’m not going to talk about which side I’m on. At this point, the guy is our president. I loved Aziz Ansari’s opening skit in SNL. Did any of you watch it? He killed it - and honestly, his point of view is pretty perfect. Moral of the story: Trump got to where he is because millions of people voted for him, and if we all stand together we are going to be okay. I left out all of the humor, so click on this link to check it out - but wait until you’re done reading this POR FAVOR.
For those of you who run a small business or are just getting started - what does Trump’s presidency mean for business? Well, here we go. For starters, I spoke with Christopher Greenhouse, VP of Business Relationships for Chase Bank. When I asked him what Trump’s agenda means for small businesses he gave me these nuggets:
“+Trump said he would impose a major border tax on any business that moves their operations overseas or outside the US.
+Trump also promises to cut taxes for small businesses and the middle class with also reducing government regulations by 75%.
+Trump also promises incentives for business that produce and hire in the US.”
Interesting. Many successful domestic organizations rely on overseas sales to keep US citizens employed. The implications of imposing said border taxes are yet to be seen but surely will cause quite the ripple. However, I can’t say I’m pissed about tax cuts for small businesses... although the skeptic in me feels it may be too good to be true.. A reduction of government regulations might make our lives easier, too. But alas, this is all very complicated. More complicated than I care to dive into in a wee little blog post.
I went to Forbes to learn more about what Donald Trump’s presidency would mean for small business owners. They had a wealth of information - Here’s what I found:
[I am regurgitating information I have discovered based on research. I will try to keep my opinions to myself. Try being the operative word. It is hard.]
Tax Reform: Trump has stated that he will compress the existing 7 tax brackets into 3. Top earners will pay 33% vs the current rate of 39.6%. Apparently, he will also decrease corporate taxes to 15%. Trump will also close “loopholes” that allow corporations to avoid taxes by banking funds overseas. S-corps (like me), and other “pass-through” entities like LLC’s, will have a top tax rate of 15%. Mmmmmkay.
Healthcare: Trump has already signed his first executive order to “promptly repeal” the ACA. This has left 20 million Americans left to wonder what the future of their access to healthcare looks like. Trump has stated that he prefers to leave buying and selling insurance up to individual states. It has also been stated that Trump would like to make healthcare insurance premiums tax deductible. There is no question that ObamaCare will be repealed - the only question is, what will it be replaced by and what will those implications mean for over 20 million people? This should be fun.
Immigration: Donald has stated countless times during his campaign march that he was going to immediately deport all illegal immigrants and send them back to their home countries. Not only would our country crumble underneath itself but it would cost $1.6 trillion to enforce. Trump has also said that he plans to ban any Muslims who want to come to the US AND will build a 2,000 mile wall along the border…while Mexico picks up the tab. Right.
It is still very unclear at such an early stage what Trump’s presidency means for immigrants, but it is estimated that he will quickly repeal Obama’s 2014 executive order- which would have made citizenship more accessible for over 6 million immigrants living here.
Trade Agreements: Trump has made it clear that he wants to regrow manufacturing bases in the US. He has stated that he plans to penalize China and Mexico by 45% and 35%. And as stated above, he plans to impose major border taxes on any businesses that move jobs overseas.
I’m no political correspondent. Hell, talking politics makes me feel uncomfortable and weird. But alas, I am here regurgitating information for ya'll incase you’ve been sitting there wondering how our new Prez might impact your bottom line. I hope this has been a teeny bit helpful or insightful for you.
Buckle up & Godspeed.