Politics & Finances

How the Election Affects Business Taxes

by
Julie Farless
on
10/24/2016
How the Election Affects Business Taxes

Small business owners are keeping a close watch on the upcoming election, as they realize that the political stance of each candidate will have an effect on small business. Most business owners are divided into separate camps when it comes to which candidate will deliver the best support for the Main Street business owner. Donald Trump supporters like the fact that he’s not married to lobbyists or owing any political favors. The Trump camp feels that the nation needs an outsider with a fresh approach. At the same time, Clinton’s supporters think she’s better suited for the job and believe her proposals will make it easier to secure capital for small business expansions. There are issues squeezing small businesses from every angle, including taxes, minimum wage, healthcare and business regulations. Small business owners are seeking a candidate who truly understands how their sector will be impacted. So, how does each candidate stack up on these issues?

Trump vs Clinton: Taxes

Trump’s personal income tax plan has four graduated tax rates rather than seven. In addition, he’s requested a corporate tax rate of 15 percent. Trump is opposed to US corporations moving to lower tax rate countries and corporate tax inversions. On the flip side, Clinton is calling for an alternative minimum tax and wants to end the carried interest loophole for Wall Street’s big wigs. Plus, she wants to maintain capital gains taxes. Overall, her tax reform plan is small-business friendly.

Trump vs Clinton: Minimum Wage

Trump is for keeping the minimum wage where it’s at and opposes a hike. His position is that a minimum wage increase would impede the nation’s ability to compete on a global level. On the flip side, Clinton believes the minimum wage at the local and state levels should be increased to $15. At the federal level, she feels the federal minimum wage to be upped to $12. Without a doubt, the increase of minimum wage is a huge issue for small business owners.

Trump vs Clinton: Healthcare

The Affordable Care Act and healthcare are on the minds of business owners who are concerned about their costs are the costs for employees. Trump plans to repeal the Affordable Care Act and supports a national marketplace that is geared toward creating competition among insurance providers. It’s his contention that this strategy will keep the costs of healthcare insurance lower for both businesses and employees. Clinton continues to support the Affordable Care Act and seeks to build on it to improve it with such changes as keeping out-of-pocket expenses lower.

Trump vs Clinton: Business Regulations

Trump wants to reduce government control on business regulations. Simply put, he wants less government control and less business regulations. In contrast, Clinton want to cut red tape for small businesses at every level of government, while keeping government involved. Part of her plan includes financial regulations, equal pay mandates and paid family leave.

As the election nears, small business owners will be faced with a difficult choice. It’s certainly one that many will be paying attention to.

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Julie Farless

Julie Farless

Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services, but we specialize in tax preparation. We work with you to ensure that your personal or business processes are conducted in a manner that ensures ongoing integrity in your financial transactions. We are available to answer your questions and help with your ongoing tax planning and changing business needs.

Deborah Martinez & Earl Shanken
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Arizona

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