The Presidential Election 2016 is only a couple of weeks away, and it will be one of the more discordant political competitions in recent history. As the small business is a key point of the US economy, all political parties are paying attention on the subject, and each candidate has announced their plans to improve small businesses and allow them to flourish.
Below is an outline of the platforms each candidate has given on small business.
Presidential candidate Hillary Clinton currently released her plan for improving small businesses. The major parts of it include:
- Making taxes easier and creating new breaks, by making an average deduction for small businesses much like the one that people can claim. This would apply to individuals who run businesses out of their homes, run local retail stores or sell their products completely on websites like Etsy and eBay.
- Increasing tax write-offs for small businesses from $500,000 to $1 million
- Making it less complicated for small businesses with less than 50 personnel to meet the criteria for the healthcare tax credit that businesses can take in the event they offer health insurance to their personnel
- Quadruplicating the tax deduction that new small businesses can take for their initial costs, growing it from $5,000 to $20,000
- Encouraging states and localities to make getting a license faster and cheaper, and standardizing licensing requirements throughout states and make it simpler for very mobile populations — as military spouses — to arise and running in a licensed occupation when they shift to a new state
- Increasing the convenience of financing new startups by rationalizing policies on community banks and credit unions, allowing small businesses put off student loan payments interest-free even as they are getting their business started; and developing SBA financing programs
- Developing the Affordable Care Act
Republican nominee Donald Trump released the following plan for small businesses:
- Possibly raising the minimum wage
- Consolidating the existing corporate tax bracket system from seven tax brackets to three, with tax rates of 12%, 25%, and 35%
- Reducing the federal tax on profits for C-corps from 35% to 15%
- Lowering capital gains taxes to 20%
- Cancelling the Affordable Care Act and changing it with a new system that would encompass a clause making the health insurance costs tax deductible, as well as allow individuals to buy healthcare across state lines
Gary Johnson, former New Mexico governor has assured the following in his election campaign:
- Removing income tax and corporate tax and eradicating the Internal Revenue Service, changing them with one federal consumption tax
- Promoting the FairTax, a suggestion currently in front of the Congress that puts a flat 23% tax on new services and products
- Increasing the retirement age, putting into practice means checking out and allowing social security beneficiaries to self-direct funds, consisting of passing cash onto their beneficiaries
- Passing on Medicare and Medicaid completely to the states without government involvement
- Cancelling the Affordable Care Act and changing it with a free market for healthcare that would not involve health insurance for continuing care however only for disastrous occasions and ailment, giving people a pay-as-you go system
- Possibly cancelling the minimum wage, energy regulation, and different government controls on economy and trade
- Signing the TPP and strongly supporting all free trade
Regardless of your political role, it is essential to stay knowledgeable on the policies that will have an effect on your business, therefore that come Election Day, you can make the right decision for you.