Proposals Include Business Tax, Regulatory Overhauls
In a speech before the Detroit Economic Club on Monday, Republican presidential nominee Donald Trump proposed a set of economic policies designed to grow jobs and support American businesses. During his speech, Trump said if he were elected, he would focus on reforming Federal regulatory processes along with overhauling individual and business taxes. Bloomberg News reports that Trump called for reducing business income taxes to 15 percent and consolidating individual income tax rates to 12, 25, and 33 percent. He would also end the ability of corporations to defer paying taxes on overseas income. Trump would “eliminate [regulations] deemed unnecessary,” and Bloomberg points out that Trump has previously said he plans to repeal Dodd-Frank. Bloomberg Politics reports Trump “sought to cast Hillary Clinton’s economic program as an ineffective relic, and to reset his own presidential campaign after a string of missteps.” Trump’s tax overhaul, “combined with regulatory overhauls and plans to boost the domestic energy industry, will push U.S. economic growth to 4 percent annually, said economist Stephen Moore,” a Trump campaign adviser. The Wall Street Journal reports that while Trump called for a temporary moratorium on all new federal agency regulations, it remains unclear how such a ban would apply to financial regulators, who operate more independently from the executive branch.
Meanwhile, business groups including the NFIB were pleased with Trump’s message of economic reforms to help grow America’s job creators. NFIB in particular was pleased with the proposal for a single business tax rate, as this would simplify the burdensome, confusing tax code small business owners face. Bloomberg News reports that business groups have long lobbied for a reduction in business taxes, noting that the current 35% corporate tax rate is the highest Federal tax rate “among the 35 countries in the Organization for Economic Cooperation and Development.” When it comes to tax reform, NFIB President and CEO Juanita Duggan called the proposal a “home run,” saying, “He got that exactly right. Small business cannot pay a higher rate than Exxon Mobil.”
What This Means For Small Businesses
Though small business owners have differing opinions on who would best lead America for the next four years, there’s no denying that small businesses are unfairly taxed. Hearing a presidential candidate detail a plan to reduce and simplify the taxes that small businesses would pay is a step in the right direction for the reforms small business owners need.
The Indianapolis Business Journal and the Boston Globe also covered Trump’s economic proposals.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.