What Trump’s Victory Means for Your Business Finances
With Donald Trump’s surprise win on Election Day, millions of Americans are wondering what President Trump’s impact will be on their money and their business. As an entrepreneur, major economic changes could leave you flush with cash or scraping by trying to survive. Here are some changes small business owners may see in the future thanks to Trump’s new economic policies.
The End of Obamacare
Mr. Trump and his counterparts in the legislature have made it clear that they want to repeal the Affordable Care Act, Obama’s namesake legislation that brought health insurance to more than 11 million Americans.
While most Americans get their health insurance through an employer, self-employed individuals and small business owners are not so lucky. The ability to buy affordable health coverage was one factor that allowed me to leave my job to seek self-employment full-time. If 11 million Americans lose health coverage thanks to Trump leading a repeal of Obamacare, I’ll be one of them. If you purchased health insurance through a Federal or state marketplace, you will join me in losing health insurance.
Trump is a fiscal conservative who believes that lower taxes will spark economic growth. Now that Republicans control the House of Representatives, Senate, and White House, we can expect to see tax cuts across the board.
The wealthiest Americans will see the biggest gains, but Trump’s plans also look to cut taxes on lower income families and individuals as well. As a small business owner, you can expect lower taxes to some degree in the future.
Higher Labor Costs
The Donald announced that he will seek the immediate deportation of roughly 2 million to 3 million immigrants who are in the United States illegally. The first industries to notice the impact will include agriculture, food service, construction, landscaping, hospitality, manufacturing, and others who have a need for a large quantity of cheap labor.
While some of those jobs will quickly be filled by unemployed Americans, many will not. Employers will soon have to pay more for labor to meet demand. That will drive up labor and product costs across the board for all Americans.
Less Business Regulation
Trump and the Republicans tout a desire for smaller government with less intervention in personal and business finances. This may lead to deregulation in some industries and more relaxed regulation in others.
As a real estate and hospitality industry veteran, we can expect the President Elect to target those industries early on. We may also see regulations cut back on Wall Street and the entire financial sector.
Environmental protections imposed by the Environmental Protection Agency (EPA) may also be in Trump’s crosshairs as a target for less regulation. Energy and manufacturing industries will see regulations and costs go down. This could lead to lower consumer prices at the cost of our planet and environment.
Long Term Ramifications
Economists and politicians do their best to explain how economic policy changes will impact the future. There is no magical crystal ball that will tell us exactly how things will work out in the long-run.
We don’t know exactly how things will turn out. We do know that Donald Trump will become President Trump on January 20th. The 45th President has a big job ahead. Hopefully small business owners will succeed and thrive under his leadership.