It seems a plan on reducing the tax bracket and income tax to 15%. S Corp's and LLC's seem to be the most benefactor from the said plan.
Through the years, deductions and the like played a big part during tax time. Though reducing the tax bill and more money coming back to an individual and a business helps, it also benefits those having huge corporate profits as well.
The question and reality lies again on the regulations and business climate to operate a small business operation. Taxes are just a segment of the long list of needs every small independent businesses lived through each day to exist.
"The National Federation of Independent Business, say 45% of business owners consider regulations a very serious business problem today. That is up from 17% in 2001. "
In addition, access to working capital continues to be a major obstacle of a small business owner. This is an area where needed regulations can be futile where the incoming Trump administration can also looked into.
Per the NFIB November report, "Four percent of owners reported that all their borrowing needs were not satisfied, unchanged from October. Thirty percent reported all credit needs met (up 1 point), and 52 percent explicitly said they did not want a loan, down 1 point. Only 2 percent reported that financing was their top business problem. Thirty-one percent of all owners reported borrowing on a regular basis (up 3 points). The average rate paid on short maturity loans rose 40 basis points to 5.6 percent. Overall, loan demand remains historically weak, owners can’t find many good reasons to borrow and invest, even with abundantly cheap money."
In such operational structures, liquidity and personal cash flow are the main funding sources for COGS - Cost of Goods Sold, etc., especially in the bookselling industry whom had been over the years continues to automate and slowly update their technology systems.
Hopefully the new SBA - Small Business Administration new chief, Linda McMahon and Trump, together, will have the ability to help revive American small business through actual government assistance (SBA loans, training and federal contract opportunities), but also through something that is even more important: building entrepreneurial confidence.- quoted from Fox News.
Entrepreneurial confidence and the essence of entrepreneurship were some of the basic principles I focused then at APEC Young Entrepreneurs Association and as APEC Youth Representative on the Young Leaders declaration in 1997.
Truly indeed it's back to basics of entrepreneurship access to capital, minimum wage, competitive and profitability structures, and coming together to address policy and regulations affecting each industry.
So my take for other fellow small business owners is that although we have our individual struggles, we have to be strong and united when it comes to policies and regulations which may affect us with the new administration. The key is "Vigilance".