Small business is crucial for the economy, and the upcoming presidential election is focused on the topic. The parties have their own plans regarding small businesses. Business owners keep a close eye on the presidential race to see how things will develop.
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Small Business Plans Released by the Democratic Platform
Due to the recently-released plan by Hillary Clinton, it is expected:
- Taxes would be simplified and new breaks created. This would refer to those who run businesses out of their homes, have local shops or sell their products on eBay, Etsy, etc.
- Tax write-offs for small businesses would increase from $500.000 to $1 million.
- Businesses with fewer than 50 employees would more easily qualify for the healthcare tax credit.
- The tax deduction that new small businesses can take for their startup costs would be four times as great, reaching from $5.000 to $20.000.
- States and localities would be incentivized. Licensing requirements would be standardized across states. Very mobile populations would more easily get up and run in a licensed occupation.
- The ease of financing new startups would be increased. SBA financing programs would be expanded.
- The Affordable Care Act would be expanded.
Small Business Plans Released by the Republican Platform
Here is the plan for small businesses presented by Donald Trump:
- The minimum wage would be raised.
- The current corporate tax bracket system would be consolidated from 7 tax brackets to 3 (tax rates would be12%, 25%, and 35%).
- The federal tax on profits for C-corps would go down from 35% to 15%.
- Capital gains taxes would count for a maximum rate of 20%.
- The Affordable Care Act would be replaced with a new system: health insurance costs would become tax deductible, and people would be able to buy healthcare across state lines.
Small Business Plans Released by the Libertarian Platform
Gary Johnson presented the following plan:
- Income tax and corporate tax would be eliminated, and the IRS would be abolished. They would be replaced with one federal consumption tax.
- The FairTax would put a flat 23% tax on new goods and services.
- The retirement age would be raised.
- Medicaid and Medicare would be entirely delegated to the states without federal involvement.
- The Affordable Care Act would be replaced with a free market for healthcare.
- The minimum wage, energy regulation, and other government controls on trade and the economy would be repealed.
- The Trans-Pacific Partnership would be signed and all free trade would warmly be endorsed.
According to Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council, small business owners are worried about the economy. Only 1 in 5 state they have recovered from the Great Recession. So make the right choice for the better.