Note: As a local business owner or operator, you may have a different vantage point on the upcoming election than other Americans. Over the next two weeks, we will explore the future of local business owners and employees in the U.S. based on the platforms of the two major party’s contenders for President of the United States.
Republican Presidential Nominee Donald Trump is a well-known businessman, so it comes as no surprise that the continued success of businesses of all sizes takes a priority in his political platform. While Trump is known for building a real estate empire of hotels, casinos and skyscrapers, he also understands the key role local businesses play in the American economy. In fact, big corporations have cut about 4 million jobs in the last two decades; small businesses added 8 million.
Trump’s website details a number of proposed changes designed to boost local businesses.If elected President, he hopes — with the support of Congress — to:
Reduce Taxes for All Business Owners
Trump’s proposed tax reform plan is a key reason he’s earned the backing of many small business owners and operators. Trump supports cutting the corporate tax rate by more than 50 percent, from a current high of 35 percent to a maximum of 15 percent. According to his website, his tax reform plan would benefit businesses of all sizes. It states that his plan would apply to “… a Fortune 500 to a mom and pop shop to a freelancer living job to job.”
Prevent Corporate Inversions
While one of Trump’s motivations behind reforming corporate taxes is to prevent corporate inversions — where U.S. companies move overseas in order to pay less in taxes — some of the changes would aid small business owners as well. Under the current system, big businesses exploit tax loopholes and credits, dropping a large portion of the tax burden on smaller businesses. Trump’s tax plan reform would eliminate the need for inversions, loopholes or excess credits. This makes filing taxes easier for big businesses, local businesses and sole proprietors alike.
Overhaul the U.S. Healthcare System
Trump refers to the Affordable Care Act as “an incredible economic burden” on the American people. His healthcare reform platform would completely repeal this law, and allow a more free market for private health insurers. This would eliminate the insurance mandate for business owners, and hopefully reduce costs for those who chose to provide coverage to their employees.
Streamline the Regulatory Environment
Trump also proposes changes to the country’s regulatory and compliance systems, reforming and streamlining the necessary processes. This would boost local businesses in highly regulated industries, making it easier and more cost-effective to demonstrate compliance than under the current system.
Much of Trump’s support stems from an American voter base that hopes to move away from the trend of establishment conservatives leading the Republican party. However, Trump also has a large amount of support coming from local business owners, thanks to his business experience and tax reform plans. In fact, about 500 of his biggest donors are local business owners or operators.