What Impact Will the Trump Administration Have on Retail?
Donald Trump was elected the President of the United States despite everyone including his competitors in party sceptical of victory. But now that he is the President he is out to bring about a lot of reforms which includes health, business, foreign affairs to name a few. But the small-scale business is shaky, and it needs to be seen how Trump’s plan will impact it. Retail POS is gearing up to put things in perspective on the profit and loss during this political period. Check this http://smallbusiness.chron.com/effects-government-policies-businesses-65214.html to know more.
Trump’s policies can impact in various spheres.
Taxation: Trump is planning to introduce a much simpler three-bracket system by replacing the seven bracket system. As per the new taxation policy, the married filers <75000 will be taxed 12% and those between $75,000-$225,000 will be taxed 25% and >$225,000 will be 33%. Filing individually will attract half of the amount. He is also proposing the removal of Death Tax and also give exemption to children under 13 years. The income tax for business will be capped at 15% and much lesser than the current taxation. It brings a lot of cheer to small business as the lower tax will help the business owners and is in line with the philosophy of his party.
Trump’s Impact on Retail and E-Commerce
Minimum wages: Trump and his party both want a system with minimum salary kept low. But many states which include California and many other states have raised the minimum wage by a considerable amount. It is now standing at $10 per hour, and many other states are going to implement this policy shortly. Trump does not influence this matter as states are sovereign and hence can set their limit. But as of now, there is still no news of how it will affect or help small business with a much higher minimum wage.
Economic Consequences of Trump’s Election Win
Trade: This is a subject which has become quite contentious, Trump believes isolating and creating more jobs for Americans by withdrawing from globalising jobs. He also intends to put more money in the people’s pockets by getting back jobs from abroad and also decrease the deficit created in the account by trade policies. He has put up a list of 7 points that will help the American economy and amongst the plan is to declare China as a fiddler and will act tough against the copy trade they do.
Trump considers himself as the saver of the American workforce. But only time can tell if these changes and reforms are functional or not for small business.
Trump’s Policy Proposals and Opinion of Others
Due to his experience and background of being a successful businessman who is an expert in economy, people are of the belief that his plans will work for them. But there are a few who are in disagreement with his policies especially the amendment of NAFTA which is a free trade agreement which can be beneficial for small business in America.
It is tough to tell whether the reforms are good for small business or not but there are specific positives and negatives and only time, for now, you can only conjecture.