As we get closer to the November. 3 election general, entrepreneurs who are looking to join the 32 million small businesses across the U.S. know by now how crucial this election will be.
With a choice looming between Republican president incumbent Donald Trump and Democratic nominee and former Vice vice president Joe Biden, each vote could have significant implications for your business. Therefore, before you go into the polling place or send in your ballot, be sure to know the positions of both candidates regarding issues that affect small-sized firms and entrepreneurs.
What do entrepreneurs think about?
The process of starting a business is a difficult undertaking in normal circumstances However, the year 2020 has not been “normal” because of the rumblings of a series of catastrophes and racial tensions and an epidemic which has killed over 215,000 Americans. With further stimulus measures being impossible and the continued (albeit slowly lifting) restrictions on the way businesses function small businesses have experienced difficult times.
In the coming four years, both small-scale enterprises and established enterprises alike are paying close attention to some important issues that could be the distinction between being able to keep the lights lit and closing down for good.
In the wake of months of social distancing and social media restrictions (and some, in some cases, compulsory closures) it’s difficult to recall how the year 2020 started. Before the coronavirus hit U.S. shores, the economy was experiencing a revival kind of basis, helped by the tax cuts and jobs act of 2017. by legislation like the Tax Cuts and Jobs Act of 2017. The legislation, as well as continuing economic trends from the Obama administration increased the confidence of both consumers and investors. But, when COVID-19 began to affect thousands (and eventually thousands, even million) of Americans, some state governments forced many companies to shut down, leading to unprecedented levels of unemployment and the abrupt reversal of any gains in economic growth in the years since the 2008.
When entrepreneurs and small-sized business owners think about their choices, many of them think back to previous initiatives to boost the economy by Federal government agencies, which included The Payment Protection Program and stimulus checks that were a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. While discussions for an additional stimulus plan have been delayed by political games however, millions across the nation are in favor of boosting people and companies with federal funds. Whatever the legislation that legislators ultimately decide to back small-scale business owners across the country recognize that some help is urgently needed.
It is a common pattern that shows how the Republican Party wants to cut taxes in all forms, and Democrats frequently are planning to raise taxes to fund the cost of government spending elsewhere and programs. Although the Trump administration is able to declare victory in this field by enacting the Tax Cuts and Jobs Act Many have viewed this important piece of legislation as a gimmick for wealthy individuals that left the middle class and small businesses with very little to prove for it. If you are an entrepreneur, your taxes will have a significant impact on your income.
Federal policy directly impacts the health benefits you provide your employees. Since the beginning of time in healthcare in the U.S. healthcare system has implemented reforms as a result of the Affordable Care Act (ACA). Although it has provided millions with access to affordable healthcare however, the ACA has also brought about its own series of problems that have left lawmakers thinking about what changes must make, and solutions generally falling within party lines. As a prospective or new small-sized business owner, you must be aware of the upcoming election, as providing good benefits is an effective option to draw and retain top employees.
It is important to note that there are numerous issues that affect entrepreneurs and small-sized companies However, the economy and taxes and healthcare are usually at the forefront of their minds.
Joe Biden’s Small Business Platform
Biden has worked alongside the president Barack Obama, Biden has campaigned partly about the experience being the commander in chief during a time in which the federal government was working to get itself from the Great Recession and forge the ACA.
Despite several weeks of efforts but we had no luck receiving a response from the Biden campaign regarding his platform. We did however break down the various ideas he has put forward according to the information provided on the official site of the Biden campaign.
Biden’s economic reform
While the economy is struggling from the pandemic, Biden is confident that the president and his running teammate, California Sen. Kamala Harris can turn around the ship. Biden says he’ll make that happen for small-scale entrepreneurs by helping the sector of the economy get access to funds to help start new businesses and help existing ones stay afloat.
One of his plans calls for the creation of an “True Small-Business Fund” which would offer 60 billion dollars to small-scale lending institutions and community banks to swiftly transfer funds into the accounts of local companies. The platform also demands for the exclusion of well-off firms gaining access similar to the former Paycheck Protection Program. If such plans are implemented, Biden wants the terms to be favorable to the small-business community.
A key element of Biden’s economic strategy for small-scale companies is to help companies run by Black, Indigenous and people of people of color (BIPOC) begin. It’s been proven that BIPOC-owned businesses face difficulty obtaining funding from traditional lenders and when they do open the doors, they close in a rapid rate because of COVID-19, according to a report by the National Bureau of Economic Research. This is why Biden stated that he would “remove obstacles to our economy’s participation and increase access to opportunities, and fully enforce the policies and laws that we currently have in our books.” The most important aspect of the proposal will be the development of the Small Business Opportunity Plan, which will provide over $150 billion of loans and Venture capital for BIPOC entrepreneurs.
What changes to taxes could occur under the Biden administration?
Biden says Trump “rewards riches over work” by citing as a reason the Tax Cuts and Jobs Act as a tax celebration for those who are wealthy. In contrast, Biden says his tax plan will keep taxes at a minimum for people earning less than $400,000 annually as well as implement “more than a dozen taxes for middle class taxpayers” and raise the corporate tax rate from 21 percent to 28%, as well as other suggestions. In addition, Biden’s tax plan will tax the foreign profits from U.S. companies and impose additional taxes on businesses outsourcing jobs to countries that are not.
Tax savings could be available through different tax credits for important life events like buying their first home and guaranteeing that no family pays more than 8.5 percent of their earnings on healthcare. Biden proposes also proposing up to $8,000 tax credits for families with low incomes and middle-class families to help pay for childcare and the equitable distribution of benefits for pension savings between wealthy households and middle and middle and middle-class families.
Biden’s health care plans
After having helped to ensure the ACA’s success in 2010 and helped ensure the ACA’s passage, Biden is running on the promise to ensure it remains in place. Biden’s website for his campaign states that the candidate will “build upon the Affordable Care Act by offering Americans more choices, reducing the cost of health insurance, and making the health system simpler for people to understand” by creating a Medicare-esque public option. If the option is approved and implemented, Biden believes that all small-sized companies will be capable of “afford insurance for the employees they employ.”
Important takeaway: Biden’s multifaceted proposal calls for more taxes for the wealthy and an extension of the ACA.
Trump’s Small Business Platform
Trump is running on the premise that he is determined for to the U.S. economy back to the pre-COVID level. Trump has repeatedly claimed that he could guide the nation to a record-breaking level of prosperity.
“This administration has helped small businesses succeed by eliminating burdensome regulations from Obama and Biden’s administration, while permitting tax deductions for additional expenses, and helping small businesses keep their employees on their payroll throughout the pandemic through Paycheck Protection Program.” Paycheck Protection Program,” said Courtney Parella, a spokeswoman for Trump’s campaign for re-election.
In contrast to Biden has presented plans for the following four years Trump was adamant about the accomplishments of his inaugural term. Although we asked to the Trump campaign for more details about the plans of the president for the coming 4 years, but we didn’t receive any responses. We gathered information here are some of the arguments Trump is promoting with regard to new small-scale companies:
Hopes for a growing economy
In the majority of his term in the White House, Trump has had a solid economic reality for his communication for people American people. A poll conducted by CNBC and Survey Monkey in February found that more than two-thirds of small-business entrepreneurs “approved of the way that President Trump handled the U.S. economy.” The campaign also emphasizes that in 2019, applications for business increased to 3.5 million, which is 20% more than three years prior.
In the spring economic recovery, the country was on a huge plunge downwards and millions of people declaring themselves jobless every week for some time. Although the economy has been difficult, Trump emphasizes that he and Senate Republicans supported legislation called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which established the Paycheck Protection Program, provided $350 billion of forgiven SBA loans and provided 10 billion in emergency grant in addition to other grants.
Although there isn’t a full explanation of Trump’s policy in the near future The campaign has published an outline of his economic plans on their website.
Trump’s tax policies
Trump might have been an outsider during 2016 but his tax-related policies are quite similar to the long-standing Republican initiatives. With the biggest tax reform law already in his record as president, Trump has begun floating some ideas he might decide to implement if he is reelected. While the details aren’t straightforward to determine however, Trump has indicated his desire for a tax cut for employees and reduction of the personal tax rate to 15 percent and reduction in taxes on capital gains.
In terms of for small businesses as a whole, Parella noted that the Tax Cuts and Jobs Act created a tax deduction that pass-through companies and other small-sized businesses can benefit from on up to $326,000 in income. More than 90 percent of U.S. small businesses can take advantage of this deduction, as per the campaign.
The health care system with the Trump second term. Trump second term
Republicans within Congress have been vocal about the fact the view that they would like to eliminate and take over the ACA, and Trump echoes these beliefs. Although neither side has provided an actual plan other than the “repeal” aspect however, the campaign is promoting the president’s prior efforts that could impact small firms.
One aspect that many small-sized businesses are familiar with is the growth of health reimbursement plans and group health programs, which allow smaller businesses to bundle their health insurance coverage. This way they will be able to increase their purchasing capacity and get lower cost health insurance benefits for the employees they employ.
Other potential health care initiatives that the president could be able to consider in the second term include the decrease of prescription price for drugs and the cost of health insurance and the removal of billing surprises.