3 Ways Trump’s Policies Could Impact Small Businesses
The countdown to Election Day 2024 is well underway, with little over a month until America heads to the polls and chooses the next president. In some states, early voting has already begun, and daily polling averages are reflecting how Americans feel about the two candidates.
Check Out: I’m an Economist — Here’s My Prediction for Social Security If Trump Wins the 2024 Election
Read Next: 9 Things You Must Do To Grow Your Wealth in 2024
At present, the national polling average, as indicated by the New York Times election poll tracker, has Vice President Kamala Harris 3 points ahead of former President Trump, at 50% and 47% respectively.
However, these figures are well within the margin of error. On top of that, the two candidates are virtually tied in a number of key swing states. This presidential race is slated to be extremely close and it’s still unclear who will be the winner.
If Trump prevails this November and scores a second term in the White House, here are three ways that his proposed policies could impact small businesses, according to Business Insider and The Hill.
Learn More: Trump Wants To Eliminate Income Taxes — Here’s What That Would Mean for the Economy and Your Wallet
Earning passive income doesn't need to be difficult. You can start this week.
His ‘Shoot From the Hip’ Approach Could Increase the Price of Oil
Petroleum-based products are used in just about everything. From the production of energy, powering vehicles, shipping, and more, the price of oil greatly affects the overall cost of doing business. Trump has a “shoot from the hip” approach to foreign policy, including when it comes to foreign relations with Russia and the Middle East.
His rhetoric can certainly have an effect on oil prices in the U.S., which could lead to further volatility. Higher oil prices mean a higher cost of doing business, which may cut into small business profit margins and increase operating costs.
The 2017 Tax Cuts and Jobs Act Will Likely Be Extended
The provisions set forth by the Trump-era 2017 Tax Cuts and Jobs Act are slated to expire by the end of 2025. But, a second-term Trump presidency would surely result in an extension of these rules.
One of the most popular provisions of the bill includes the “Qualified Business Income Tax Deduction,” which allows most pass-through organizations like S-Corporations (s-corps) and Partnerships bigger tax deductions than before. Some small businesses could continue to benefit from lower taxes if the legislation is extended.
Sweeping Tariffs on US Imports Will Raise Operating Costs
Trump has mentioned implementing a 10% tariff on all U.S. imports and a tariff as high as 60% on all imports from China. Trump even proposed the idea of imposing 100% tariffs on countries that dump the U.S. dollar for other currencies, as a sort of punishment for not doing business with the U.S.
His idea here? To strengthen the U.S. economy by discouraging imports and raising funds in order to cut income taxes. At the same time, the reality is that the cost of these tariffs could fall on the average consumer and further decrease the already tight budgets of most Americans these days. Small business operating costs may go up and revenue could fall.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
7 Reasons A Financial Advisor Could Boost Your Savings in 2024
4 Best International Cities to Buy a House in the Next 5 Years, According to Real Estate Experts
17 Walmart Items Retirees Should Stock Up on Before Winter Hits
This article originally appeared on GOBankingRates.com: 3 Ways Trump’s Policies Could Impact Small Businesses