President-elect Donald Trump’s second term could bring big changes to Main Street, but small business advocacy groups have mixed views on his policies. This comes as the National Federation of Independent Business’ uncertainty scale is at an all-time high. A newly released survey conducted before the election. In addition to the changing political environment, many business owners are struggling with inflation and labor shortages. “Now that the election is over, small business owners will begin to feel less uncertain about their future business conditions,” said Bill Dunkelberg, chief economist at NFIB. “Despite increasing optimism on Main Street, small business owners still face unprecedented economic adversity.” Some small business owners are bracing for the impact of higher tariffs. It was inside. On Monday, President Trump posted on Truth Social that one of his first executive orders would impose a 25% tax on all products imported into the United States from Mexico and Canada. “These tariffs will remain in effect until we stop drugs, especially fentanyl, and all illegal aliens from invading our country! Both Mexico and Canada have the absolute right to easily resolve this long-simmering problem. “I have the power,” President Trump said. Lys Lacoste, a restaurant owner in Washington, D.C., is concerned about the possibility of rising prices for some ingredients. “We get some of our produce from warmer climates, including Mexico, so I think we will be affected, especially during the winter months,” Lacoste said. “I think it’s going to be difficult. I hope it doesn’t happen. I hope a lot of these things don’t happen.” She’s not alone in her worries. “Small and medium-sized business owners are already working hard to weather the painful effects of a potential trade war. They are building up inventory and, if possible, manufacturing for export markets. We’re even considering moving our operations overseas.” Jeff Brabant, vice president of federal relations for the NFIB, said the organization has not taken a formal position on President Trump’s tariff proposals at this time, but party members generally agree. I’m optimistic about his re-election. “They’re hoping that burdensome regulations will be eased, and they’re hoping that there won’t be a huge tax increase at the end of next year,” Brabant said of the tax cuts enacted in President Trump’s first term.・The Employment Act allows eligible small business owners to deduct up to 20% of their business income, a provision also known as a pass-through deduction, which they said smooths the burden. “It was a great success, but unfortunately many of these provisions are expiring,” Brabant said. Brabant believes a soon-to-be Republican-controlled Congress will be in a better position to extend or even make the policy permanent. But critics of the pass-through deduction say it unfairly benefits the wealthiest Americans and excludes some small businesses. They’re calling for a different approach to helping Main Street. “We proposed a bottom-up standard deduction of $25,000 on small business income, so that small businesses would actually get a bigger benefit than larger businesses.” said Ahrensmeyer. As lawmakers prepare to revisit the tax debate next year, it remains unclear who will lead the Small Business Administration during President Trump’s second term. As of Saturday morning, Trump had not announced his pick to lead the agency, but it is likely that he will be a new person. President Trump has already nominated former SBA Secretary Linda McMahon to lead the Department of Education. Molly Day, vice president of communications for the National Small Business Association, said the selection is an opportunity for President Trump to demonstrate his priorities for the association. “The selection of an SBA Administrator must help adequately staff the SBA Office of Counsel, which has been without a lead attorney for years. This small firm will protect small businesses on regulatory matters. law and small and medium-sized enterprises. We need someone with strong industry experience.The next SBA administrator will be committed to maintaining SBA’s strong lending program and increasing the federal government’s federal contracting goal from 23 percent to 30 percent. “We should,” Day said in a statement.
WASHINGTON —
President-elect Donald Trump’s second term could bring big changes to Main Street, but small business advocacy groups have mixed views on his policies.
This comes as the National Federation of Independent Business’ uncertainty scale has reached its highest level ever, according to a newly released pre-election poll. In addition to the changing political environment, many business owners are struggling with inflation and labor shortages.
“Now that the election is over, small business owners will begin to feel less uncertain about their future business conditions,” said Bill Dunkelberg, chief economist at NFIB. “While there is growing optimism on Main Street, small business owners continue to face unprecedented economic adversity.”
This comes as some small business owners are bracing for the impact of the tariff hike.
On Monday, President Trump posted on Truth Social that one of his first executive orders would impose a 25% tax on all products imported into the United States from Mexico and Canada.
“These tariffs will remain in effect until we stop drugs, especially fentanyl, and all illegal aliens from invading our country! Both Mexico and Canada have the absolute right to easily resolve this long-simmering problem. “I have the power,” President Trump said.
Lys Lacoste, a restaurant owner in Washington, D.C., is concerned about the possibility of rising prices for some ingredients.
“We get some of our produce from warmer climates, including Mexico, so I think we will be affected, especially during the winter months,” Lacoste said. “I think it’s going to be difficult. I hope it doesn’t happen. I hope a lot of these things don’t happen.”
She’s not the only one worried.
“Small business owners are already working hard to weather the painful effects of a potential trade war. They are building up inventory and, if possible, manufacturing for export markets. We’re even considering moving our operations overseas,” said John Arensmeyer, founder and CEO of Small Business Majority.
Jeff Brabant, the NFIB’s vice president for federal relations, said that while the NFIB has not taken a formal position on Trump’s tariff proposals at this time, members are generally optimistic about his re-election.
“They’re hoping that less onerous regulations will be eased, and they’re hoping that there won’t be a big tax increase at the end of next year,” Brabant said.
The Tax Cuts and Jobs Act, passed during President Trump’s first term, allowed eligible small business owners to deduct up to 20% of their business income. Supporters say the provision, also known as a pass-through deduction, levels the playing field with big corporations.
“This was a great success, but unfortunately many of these provisions will soon expire,” Brabant said.
Brabant believes a soon-to-be Republican-controlled Congress will be in a better position to extend or even make the policy permanent.
But critics of the pass-through deduction say it unfairly benefits the wealthiest Americans and excludes some small businesses. They’re calling for a different approach to helping Main Street.
“We proposed a bottom-up standard deduction of $25,000 on small business income, so that small businesses would actually receive a larger share of the benefits than large businesses. ” said Erlensmeyer.
As lawmakers prepare to revisit the tax debate next year, it remains unclear who will lead the Small Business Administration during President Trump’s second term.
As of Saturday morning, Trump had not announced his pick for the agency’s top job, but it is likely that he will be a new person. President Trump has already nominated former SBA Secretary Linda McMahon to lead the Department of Education.
Molly Day, vice president of communications for the National Small Business Association, said the selection is an opportunity for President Trump to demonstrate his priorities for the association.
“The selection of an SBA Administrator must help adequately staff the SBA Office of Counsel, which has been without a lead attorney for years. law and small and medium-sized enterprises. We need someone with strong industry experience.The next SBA administrator will be committed to maintaining SBA’s strong lending program and increasing the federal government’s federal contracting goal from 23 percent to 30 percent. “We should,” Day said in a statement.
