In this election cycle, both presidential candidates have done a lot to appeal to small and medium sized business owners. As an important voting block (more than 28 million people) Clinton and Trump released their own vision for supporting SMBs. However, in a recent poll done by Manta, a social networking site that caters specifically to business owners,Trump resonated with them more. Now that he’s elected, what policies can SMBs expect with a Trump presidency and why is it so appealing for them?
His appeal with SMBs is nothing new. As a business owner himself, his ideas on taxes was the main draw. Business owners polled by CNBC after the first presidential debate overwhelming thought that Trump had a more favorable policy on taxes (61.2% against Clinton’s 38.8%) and it’s easy to see why. In a campaign speech in Detroit, MI, he stated that, “No American company will pay more than 15% of their business income in taxes.”
Repealing Obama Care
The Affordable Care Act (or Obama Care) has been very expensive for SMBs and repealing it is something they consistently fight for. The HIT or Heatlh Insurance Tax is said to take in $159 billion over the next 10 years – with majority of the penalty, paid by businesses. In response, 80% of business owners surveyed have indicated that they would need to take steps in order to cope with the added costs (either through layoffs, hiring delay or cutbacks on insurance coverage).
SMBs have come out in droves arguing against enacting an increase to our federal minimum wage. The majority have argued that the $15 per hour proposed by key Democrats will lead to cuts in their staff, fewer hours for their hourly employees and hiring delays. This issue has been a hot button topic this election cycle and Trump has not given an exact number of what it should be. However, he did leave it up to the states to decide.
Understanding the needs of SMBs this election cycle is important since this sector is one of the main drivers of the U.S. economy. They have provided 55% of all jobs since the seventies and constitute 54% of all sales in the U.S. The vast majority surveyed have a positive economic outlook. While Trump resonated more, there was still a lot of doubt on his ability to execute in office – the eyes of small American businesses are now upon him.