25 ways Donald Trump will affect small businesses in the U.Stony tony https://secure.gravatar.com/avatar/aa9bbdf8f1e6bbf534778ecea7c0c925?s=96&d=mm&r=g
25 ways Donald Trump will affect small businesses in the U.S
Small businesses in the U.S have always been neglected when it comes to the setting of policies and trade agreements. Big corporations are always the biggest winners and with the proposed changes that Donald Trump will bring to the business sector, there are varied impacts that can be expected and 25 of them include:
Reduced business tax rates
The most attractive impact of the Donald Trump presidency is the reduced tax rates for businesses which will drop to the 15% mark. This will ensure businesses are not over taxed.
Introduction of VAT
A less admirable proposal by Trump is the proposal to introduce VAT to increase the revenue streams of the government but this is sure to be complicated for businesses in terms of filing returns and managing tax obligations.
Elimination of carried interest rule
The carried interest rule has always stifled the capacity of small businesses to make an impact in the business world and the proposal by Trump is a viable one to enhance operations.
Tax cuts for big corporations
It is worse enough that the big businesses operate at an advantage and the proposal to reduce their tax obligations will ultimately lead to small businesses lacking the competing power.
Undercutting small businesses
The proposals by Donald Trump are tuned to undercut the small businesses especially when it comes to the budget since the economic plan is not structured to support entrepreneurship.
Focus on GDP
The proposals by Trump are focused on the growth of the GDP which is good news for small businesses since it will lead to a requirement of enhanced productivity from the local businesses.
The economic plans that Trump has brought forward are designed to drain wealth by rewarding the larger corporations while straining the small businesses with regulations.
Hard to compete with large corporations
Small businesses will find it hard to compete with large corporations owing to tax obligations and the overall support in the budgetary allocations.
Fewer customers with money to spend
A major impact of the taxation proposal by Trump will be the reality of having fewer customers with money to spend due to the blanket taxation system that will put a strain on the target market.
There will be reduced investments in new businesses and a lack of support for existing small businesses since wealth will be concentrated at the top where Donald Trump suggests will be the platform to create jobs.
Changes in trade policies
The proposed changes in policy will impact small businesses since they will be the first ones affected when big corporations return to the U.S.
Stress on low and middle income earners
What the new tax proposals by Trump mean is that all corporations and individuals will be treated equally which will mean stress on low and middle income earners and comfort for the wealthy who are apparently not the target market for small businesses.
More risk-little reward
With all businesses coming back and competition at an unfair stage, small businesses will be forced to take more risks but the rewards will be little with all businesses targeting a fixed market.
Focus on employment rather than entrepreneurship
The economic plans that Donald Trump has promoted will focus on people being employed by the big corporations instead of them setting out as entrepreneurs.
Unhealthy domination by “C” corporations
The “C” corporations with major power in manufacturing and trade will have the field to practice unhealthy domination with lower tax obligations and huge revenue settings.
Trade wars impacts
Small businesses in the U.S relied on the cost-effective products being brought in from China by U.S corporations and with Trump demanding that the companies move back to the U.S, small businesses will find it hard to sustain operations with costly products.
It has been documented that immigrants start businesses in the U.S at twice the rate of the native-born Americans. With the proposal to push the undocumented immigrants out, there will be no new startups.
Small manufacturers will thrive
Small manufacturers who target the local market will thrive under the Trump presidency since foreign competition will be limited with Donald proposing a focus on American-Made products.
Reduced economic vitality
Small business will lack competing power which will impact the vitality of the economy by offering monopoly to the big corporations.
Lack of expansion capital
Small business will lack the capital to expand their businesses owing to the wealth being concentrated at the top brass.
One positive that small businesses will look forward to is the proposal by Trump to remove the healthcare insurance policy and replace it with one that is sustainable for the local residents.
Drop in minimum wage
A drop in minimum wage is a viable proposal for small businesses since it will ensure the operational costs for businesses are reduced to a sustainable mark.
Removal of Red Tape
Regulations have always stifled the development of small businesses but Donald Trump has proposed a repeal of the Red Tape to ensure businesses thrive.
Lack of affordable talent pool
Ordering the undocumented immigrants out of the U.S will lead to small businesses lacking the affordable talent pool to scale businesses while reducing costs.
Estate tax regulation
Estate tax regulation will ensure small businesses as well as big corporations can be passed on to the younger generations or through the family without huge tax obligations.