If you are a small business, then you need to pay attention to the effect the government is having on your company. After all, it only takes one move from the president or Congress to help or hurt your business. So here is the quick and dirty guide for how Trump is affecting small businesses:
There is one thing that businesses hate more than anything, and that’s taxes. When you work hard all day to serve your customers and put food on your table for yourself and your family, the last thing you want is the government taking almost half of it. However, this is the fate that many small business owners suffer.
When Trump was running for office, he promised to slash taxes for businesses. He has done just this. The recent round of tax reform led to lower taxes for businesses so they can put more back into their company. While some people complained and tried to redirect the conversation to be about the ultra-wealthy getting more, local merchants are fundamentally pragmatic and understand that more money equals more money, period.
Economy and Employment
The economy has been roaring since Trump’s first day of office. The stock market reached highs it has never seen before. The reality is that investor confidence is higher than it has ever been. This, along with the tax cuts, has lead to more money floating around.
People are employed more often now too. This combo of lower taxes, higher investment confidence, higher employment, and better dividend payouts from stocks means more people have more money left over to spend on businesses, meaning you enjoy more profits.
For years, the small business owners in this country suffered from high tariffs if they wanted to offer their goods to people in other countries. Something that should cost a few dollars might be double that abroad. The recent tariffs on foreign products have leveled the playing field a bit, making it cheaper to sell locally and abroad for business owners.
When it comes to government, the best thing they can do for businesses is to stay out of the way. Luckily, that seems to be the case with Trump. He is cutting taxes, putting tariffs on other countries, and creating an economy that is confident and getting put to work. This is great news for business owners. However, it also means you need to fit as much revenue through this window as possible before the opportunities are gone.