Payday HCM is a neutral party and does not endorse any candidate.
Election season is a stressful time, especially for businesses. During an election cycle, there are times when the fate of the business you spent so much time creating is entirely in someone else's hands. That’s not even mentioning the endless influx of information regarding which candidate will do this with the economy, how this candidate just said this, and what that means for you. It can be overwhelming, and all of the different factors surrounding an election can make it hard for you to really sit down and research to figure out which candidate is better for your business.
We get it. At Payday HCM, we’ve witnessed numerous elections. Unfortunately, it never really gets any less stressful. There’s always going to be that constant stream of information. Heck, we’re a business too: at some point, we’ll also be faced with the same weight of making a decision. For us, though, our main concern lies in ensuring we can provide the best information possible so that any small business owner can make the most informed decision possible.
In this article, we’ll go over both candidates’ proposals for the economy and the different impacts these may have on your business. We’ll look at each of their different stances on things from tax cuts to tariffs to incentives, painting a picture of what your business might look like under a presidency from either candidate. By the end, you’ll have all the information you need to make a confident and secure decision.
In this article, you will learn:
- Each Candidate’s Stance On The Economy
- How A Potential Presidency From Each Candidate Will Impact Your Business
Each Candidate’s Stance On The Economy
Firstly, we’ll dive into what each candidate has said in regards to their potential policy changes around the economy, specifically focusing on things that would have the most impact on small businesses.
Kamala Harris And The Economy
Vice President Kamala Harris as well as former President Donald Trump have largely built their economic policy campaigns around bolstering the middle class. Harris’ website outlines her potential plans for the economy which include efforts to lower inflation and cut taxes.
On the business end, Harris plans to expand the small business tax credit from $5,000 to $50,000 with the intention of covering the estimated $40,000 it takes to start a business, according to CBS. Her campaign website outlines a goal of 25 million new business applications by the end of her first term.
Harris has worked to expand small businesses during her term as Vice President, working closely with the Small Business Administration to offer funds through the Capital Readiness Program.
Donald Trump And The Economy
As mentioned before, former President Donald Trump’s economic platform rests largely on lowering inflation as to lower everyday costs for middle-class families. Lowering inflation would also serve to benefit businesses by lowering operating costs as well as potential improvements to employee quality-of-life.
Trump’s campaign website details his plan for lowering inflation which focuses on cutting energy costs through increased domestic production of oil and natural gas. This also aligns with Trump’s focus on eliminating Chinese imports of “essential goods” through tariffs, according to ABC.
Trump has also focused on tax cuts as a part of his proposed economic policy. According to Time, Trump plans to lower the corporate tax rate to 15 percent as compared to the current 21 percent.
How A Potential Presidency From Each Candidate Will Impact Your Business
So, what would any of these policies actually mean for your business? While some may be obvious at first, we’ll take a closer look at the potential impacts both candidates may have on your business.
Kamala Harris
Harris’ plans focus on alleviating the issues both new and current small businesses face when it comes to government interaction and bureaucracy. According to Forbes, Harris wants to expand federal contract opportunities and help to eliminate barriers businesses face when applying for permits or filing their taxes.
Harris’ plans for relieving high prices, though, would come with its own high price tag. It’s unclear currently how Harris plans to fund some of these efforts, although her proposed increase to the capital gains tax rate could help to offset some of these costs.
For start ups, a Harris presidency could mean an easier path towards becoming a fully-fledged business. Current small businesses could also expect to see easier paths for things like taxes. This all depends on whether congress would approve any of Harris’ proposed plans. If Harris is unable to combat high prices, the current corporate tax rate could still prove to be straining as well.
Donald Trump
Trump’s plan focuses on directly cutting costs, largely in the form of taxes. The biggest impact businesses can expect to see would be with the proposed permanence of his 2017 tax cuts—which are set to expire in 2025—of which the 15 percent corporate tax rate would be a part of.
Lowering the corporate tax rate would provide businesses with immediate access to new funds and could bolster corporate as well as individual spending. Trump also plans to increase deportations in an effort to lower housing costs. According to Time, this could potentially drive up costs by causing labor shortages in industries reliant on immigrant labor.
The biggest hesitation for Trump’s plans come in the form of national debt. Trump’s proposed tax cuts could add an estimated $5 trillion to the national debt over ten years, according to PBS. Trump’s proposed tariffs could also present raised costs for businesses who currently import certain products or goods.
Cast Your Vote For A Better Business
Election season can be extremely overwhelming. Heck, even in writing this article I feel worn out. For business owners this can be an especially tricky time. Not only are you having to navigate how the election is discussed in the office, you also need to decide which candidate has the best policies that will best benefit your business.
Now, though, you’ll have this article as a good jumping off point for you to further your research and make the most informed decision this election. Keeping up with each candidate’s stance on the economy is important to better understand your expenses for the upcoming year. For more tips on controlling costs in your business, check out our article on controlling health benefits costs.
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