Elections are a time for change, a time to be looking towards the next step, and hopefully a time to help small and large businesses alike to grow. However, the 2016 election is forcing small businesses to keep an extra close eye on the race to presidency due to growing concerns of how either parties nomination could affect them.
One thing that is appealing to businesses about Donald Trump is his experience as a business owner. Good or bad, Trump has become one of the most recognizable businessmen in America. This is appealing to many business owners because it would bring a non-political perspective on our current economic state.
Now, the other half believes that Hillary Clinton may be better for their businesses to grow. Many small business owners believe that Clinton’s economic proposals will allow easier access for them to secure capital for investments that would allow them to grow, lack of capital is the number one reason business fail.
We went ahead and compared their platforms next to each other and here’s what we found…
Stand on Employment
For many years Americans have waited for the economy to turn back to what once was thought to be the best in the world. However the past 15 years have proven otherwise.
Trump has been outspoken on his views of immigration affecting the jobs offered for citizens, and he has been outspoken on how he would attempt removing immigration, but hasn’t shown much policy work to back it. He has made a clear point that he would introduce large tax cuts, decrease regulations, and even go as far as renegotiating trade to decrease unemployment and prevent America from experiencing an “irreversible economic decline.”
Clinton has unveiled her policy proposals to increase spending on all programs that could help increase knowledge in the workforce; from training programs, to college costs she is hoping this will all help back her proposal of raising minimum wage.
Both nominations can agree on one thing, we are going down a very dangerous path of economic decline, and we don’t have long to implement policies to change that. The concern with Trump would be how some of our current trade agreements could be altered with “negotiation.’ With most of US products being imported from China and other countries, a poor negotiation could cost American businesses millions. With Clinton, although training would be put in play, what cost is this going to impose on taxes? It could very well change her original policies if costs don’t play out and money can’t be taken from other departments. We could still see an increase in unemployment if employers are unable to afford these individuals who are now more experienced than ever before.
Stand on Taxes
Tax policies have been one of the few issues that have always separated the two parties.
Trump’s new plan, that was released late 2016 kept many of the original plan, but added a deduction for child care costs, proposed a lower increase in standard deductions, and said he would cap itemized deductions to $100,000 per individual. He also stated that he would set the top individual tax rate at 33%, which is 6.6% down from todays 39.6%.
Some non-corporate businesses would be facing a second layer of taxation on dividends, which could affect their revenue and ultimately bring back the concern of having to layoff employees to compensate. It could also make it harder for small businesses to actually get going. However there is some comfort for the working-class that may be concerned about the new policies, Trump’s campaign said that both poor and working-class could opt out of the new policies to stay in the current tax system.
Clinton on the other hand believes strongly that the wealthy and corporations are getting away with paying little on taxes. Many corporations are changing address overseas to allow tax reductions; she wants to increase regulations to change that.
She also said that impose a minimum 30% tax on households make $2 million per year and have a 4% surtax on incomes over $5 million She also plans to increase estate taxes and expand the child tax credit. There are still lots of blanks in her tax plan though.
Smaller businesses could struggle with Trump’s tax policies upfront, but as they grow in to corporations, they will benefit more from them. Due to lack of total understanding on Clinton’s real plan for business taxing, it is hard to say if any of her policies would truly benefit. It seems more that both have their flaws for small businesses, it is more about how you want it to be affecting you in 10+ years.
Stand on Minimum Wage
Many have tried, and all have failed to raise minimum wage from the $7.25 an hour mark that it has been at since 2009. Could 2016 be the year it changes?
Trump said to NBC’s “Meet The Press” that “[he’d] like to see an increase of some magnitude. But I’d rather leave it to the states.” Following the republican parties standard beliefs, however he has changed his stance on this multiple times. He has more recently said he would like to see a $10 an hour federal minimum wage, moving more to stand with democrat’s beliefs.
However, he has changed his stance for a minimum wage increase multiple times, so it is hard to really say where he stands today.
Clinton has made it clear she is following the democrat policies of raising it, and even went as far to say she’d “raise the federal minimum wage back to the highest it’s ever been in this country…” in a press release. She said that she supports a $12 federal minimum wage but also wants states and cities to have the opportunity to set higher floors when the support is available.
Now that both parties are seeing the need to increase wages, there will be an expectation of inflation. The only concern is, how much will businesses need to increase their wages to continue gaining revenue. A $10 wage will require much lower increase, if any, rather than a $15 wage that will require a much larger increase. We could also an increase in unemployment if businesses cannot sustain their current employment rates with increased costs.
In whole, this election will go down in history as one of the most diverse and outspoken campaigns. Both candidates have proven to be the best in their party based on US voters, they each have the ability to change America and hopefully help not only the nations economy grow, but all of the small businesses out there.
Want to read more?
Here are some other websites explaining even more about the impact this election may have on our economy…
Trump vs. Clinton – Inc.com
Where They Stand – Wall Street Journal