With the election of a business person to the highest office in the land, what is the outlook for small business? It is certainly early in the process, but there are several indicators that look very positive for the small business community.
- Emphasis on tax cuts. The United States has some of the highest corporate tax rates in the world. Trump has proposed a top corporate tax rate of 15%. This would mean that tax policy becomes less significant in overall business strategy and mean that as much as 20% more of net profit of the company could be retained. Individual rates are proposed to be reduced as well which will mean more money stays in the hands of the consumer.
- Skyrocketing Health Care Costs. This was a major issue in the campaign and with several changes, such as allowing the insurance companies to sell across state lines, the price of health insurance is likely to come down.
- Domestic Energy Production. With new technologies available and by finishing existing projects, it is very possible for the United States to become energy independent within a short period of time. Lower and stable energy prices are the engine of the free enterprise system and the benefits to the economy could be enormous.
- An Easing of Regulations. It is very expensive for a small business to comply with all of the rules and regulations that are put upon it. This administration should be keenly aware that the vast majority of the new jobs created in this economy will come from small business. Being that the number one campaign promise was the creation of jobs, the government should become an advocate for small business.
I believe that we have been given a great opportunity and that the next four years should be a great time to be in business.