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President Trump’s State of the Union Address, and America’s Small Businesses

Last night, President Trump delivered the first State of the Union address since he took office in late 2016.

 

The speech had its highlights. Trump directly addressed American soldiers, heroes, and public service workers that saved the lives of others during his first year in office.

 

He also told the story of Ji Seong-ho, a once-North Korean now residing in the United States, whose story of turmoil and escape utterly silenced the House Chamber.

 

But the guests of honor were Americans, and none were more fervently applauded than hard workers, and small businesses.

 

The current administration’s focus on “America First” policies and regaining US jobs was the crux of the speech and took up the majority address.

 

But the guests of honor were Americans, and none were more fervently applauded than hard workers, and small businesses

 

But, many are left wondering how the President’s words affect them, and their businesses.

 

Though everything Trump touched on affects the American people, we want to break down the major topics that affect small businesses.

 

If you decided to watch something other than a movie-length speech last night, we’ve got you covered.

 
 

Fair and Reciprocal

 
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One of the current administration’s most hotly-contested topics is trade.

 

Between renegotiating NAFTA and pulling out of the Trans-Pacific Partnership, the government has made it clear that they won’t be pushed around.

 

In the President’s address, he called for “fair and reciprocal” trading relationships overseas and close to home. The hope is that renegotiations “will protect American workers and American intellectual property, through strong enforcement of our trade rules.”

 

In the President’s address, he called for “fair and reciprocal” trading relationships overseas and close to home. The hope is that renegotiations “will protect American workers and American intellectual property, through strong enforcement of our trade rules.”

 

While Trump looks to save America’s “companies, jobs, and the Nation’s wealth,” the current method may actually hurt them. For more information about NAFTA, check out our blog on how it affects small businesses.

 

By pulling out of international trade deals and lauding “America First” policies, the current administration may stunt the dreams of its small businesses.

 

The future of small business is global. Innovation, growth, and expansion all come through international operations, and ultimately make American goods available to overseas markets. If we don’t participate, we can’t compete.

 

There is a positive side, however. NAFTA is still being negotiated, and things are looking up as the sixth-round of talks wind down. But if the current administration truly wants to put “America First,” small businesses need the option to look beyond their borders.

 
 

“The Biggest Tax Cuts in American History”

 

While many analysts have challenged the extent of President Trump’s tax reform, it has undeniably helped many small businesses.

 

The President pointed out that “small businesses have also received a massive tax cut, and can now deduct 20% of their business income.”

 

The President pointed out that “small businesses have also received a massive tax cut, and can now deduct 20% of their business income.”

 

He also noted that the reform “slashed the business tax rate from 35% all the way down to 21%, so American companies can compete and win against anyone in the world.”

 

While some of these figures can be misleading, the general consensus is that the new tax plan will largely benefit small businesses in the coming year.

 

Now, you may be thinking this point clashes with the previous one, and you’d be right. It’s harder for small businesses to navigate the regulations and fees tacked onto international trade than for large corporations, so loss of trade deals is a big hit.

 
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But it’s true that more savings on earnings and paying less tax puts money back into the pockets of business owners. While they may not be the biggest tax cuts in American history, the tax plan does inject funding into small business operations, however these funds are used.

 

In theory, they could be allocated to globalizing their businesses, or to bolster operations at home. But, the focus was clearly on bringing jobs and business back to the US.

 

The President closed out his talk about small businesses with Staub Manufacturing, a small business in Ohio: “because of the tax reform, they are handing out raises, hiring an additional 14 people, and expanding into the building next door.”

 

The President closed out his talk about small businesses with Staub Manufacturing, a small business in Ohio: “because of the tax reform, they are handing out raises, hiring an additional 14 people, and expanding into the building next door.”

 

While the President’s plans largely benefit businesses at home, his policies on international trade and regulations take on a wildly different tone.

 

As we begin the new year, the State of the Union should give cautious hope to small businesses. While things look good, a lot of work needs to be done to assist all small business owners regardless of their industry, goals, and future.

 

In spite of lacking trade deals, US small businesses still thrive in international markets. To relieve some stress, Veem is here to help.

 

Veem is a global payments solution for small businesses. By cutting out wire fees and intermediaries, Veem transfers your international business payments quickly, safely, and cost-effectively.

 

We offer stellar customer service, easy payment tracking, and receiver verification so you never have to worry about losing a payment.

 

What’s not to love?

 

Choose simple global payments. Try Veem today.

 

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