The small businesses in the United States are optimistic about the economic results that the newly coined Trump administration will deliver for Main Street. In fact, the recent surveys of my organization, the foundation of the Creators Job network, discovered that the feeling of small businesses on the economy is in a maximum of 40 months, built by high future expectations.
The Trump administration is already rolling the ball, signing an avalanche of executive orders during the first week of the term. Now, Congress must do its part to help offer a golden age for small businesses. The White House cannot do it alone.
The main policy priorities must be extended and expand, the Law of Tax and Jobs Cuts (TCJA). The law expires at the end of the year, threatening small businesses and US families with tax increases. The law reduced taxes for each income group, with an average tax reduction of more than $ 1,000.
For small businesses, specifically, the law has acted as rocket fuel for economic growth.
The provisions include lower tax rates for small approval companies, which represent the vast majority of Main Street operations in the country and the creation of a deduction of small businesses of 20 percent. Together, these provisions have helped entrepreneurs protect more from their own money from Uncle Sam, taking advantage of the way to hire more employees, raise salaries and growth operations.
As a result, the country experienced one of the stronger pre-pondemic economies in half a century. Royal wages grew at a record rate of two decades after the implementation of the law in 2018 and 2019. At the same time, media income increased by more than $ 5,000, and the unemployment rate reached a minimum of five decades.
Beyond extending the TCJA, policy formulators have other opportunities to get the government out of the Main Street road, allowing small businesses to do what they do best: create economic opportunities. Addressing the high “sliding rates” that small businesses are forced to pay every time a consumer uses a credit card is an excellent example.
It is the dirty secret of the payment industry that this hidden tax is often located as the second highest operational expense of a small business after labor costs. Why is electronic payment processing so expensive? Because two huge corporate giants, Visa and Mastercard, form what is effectively a duopoly that controls 80 percent of the payment market.