Trump in the White House is looking like a real possibility. But what does his love for corporations mean for small businesses?
Donald Trump is an insider, a business insider. If you’re Corporate America, what’s not to like?
Trump has entered the race for the GOP Presidential nomination with over 40 years of big business leadership experience—as for Corporate America, this contender knows the good, bad and ugly of our capitalist system and its intricate dealings with politics and government.
So, what does a Trump White House look like for Corporate America and small business?
Three important themes have emerged as he barrels through a very candid, bombastic and revealing journey on the campaign trail. Donald Trump is lobbying for favorable tax treatment and incentives for massive real estate projects and “making the deal."
He knows what is right and what was wrong with the system he, himself, leveraged on the road to super wealth. Trump also knows the areas in which the government mindlessly constrained good things he was trying to do.
The Trump White House will admonish PACs and lobbyists, the very same lobbyists he used to do his bidding. Trump will attempt to reduce corporate taxes, but not without accountability for where that extra profit is funneled. He will attempt to stem corporate inversions (corporations moving to foreign countries to avoid taxes) and reverse those that have already left our country with tempting incentives. Finally, Trump takes a firm stance on immigration, something that could affect the cost of our labor force.
Related Article: White House in 2016: What's on the Horizon for Small Business?
Lobbyists Sent PAC-ing
Primary to Trump’s platform is the fact that he doesn’t need anyone to help him financially.
This rings back to the Ross Perot days where a quirky man that looked a little like Jim Purdue was “rolling up his sleeves” and “fixing” America—Ross just didn’t have the right presence. Even though we see his endorsement of the "Make America Great Again" PAC, he is very mindful of constraining their role to supporting the presidency and not considering special favors. With Trump in the White House, corporations need to forget about effective lobbying, especially where things don’t seem right.
Donald Trump appears boastful about his wealth, but really, his message is this that his wealth was built through our system—he is a businessman who took advantage of what was available to him. Regardless of how he got there, trying to buy Trump is not a worthy expenditure of effort. This is great for small business where they can now expect a more level playing field with the quashing of larger competitors’ special interests. While he won’t be influenced by lobbyists he will use the system for his own means.
“I have lobbyists that can produce anything for me. They’re great.”
Here’s something you don’t hear a lot; reduce corporate taxes. The U.S. has the second highest effective corporate tax rate amongst OECD (Organization for Economic Cooperation and Development) countries. There is a lot of confusion on what the actual effective tax rate (versus statutory which is very high at 39.1 percent), but it is high enough for many corporations to seek a more favorable environment in other countries.
Trump does not like big government and feels that this money is better placed in the hands of business—but not without some controls. He calls for a zero percent corporate tax rates as long as corporations don’t funnel that money into investors’ pockets. Making America great again requires companies to invest here, hire here and prosper here.
“For those companies who made the mistake of sending their businesses overseas but have seen the light and are ready to come home and bring jobs with them, they pay zero tax.”
If you want to outsource jobs overseas then you pay 20 percent. So, how you enforce compliance with the rules associated with paying zero tax remains to be seen, but if the math works, this is could be highly favorable for workers and business in America.
Realted Article: Do You Really Want a Tax Extension?
Immigration has been a very controversial subject for Trump and has got him into a lot of hot water in the “political correctness” category. To stem the flow of workers from foreign countries tightens our labor supply and could easily force wages up. Trump is not a big fan of the current administration’s posture on opening our borders.
How this political hot potato plays out will be interesting, Trump doesn’t need the money, but he does need the vote.
On the flip-side, Donald Trump wants to stem the flow of corporations abandoning our high taxes and repatriate those that have already jumped ship. He proposes a zero percent tax rate to keep those considering the move, and tax amnesty to lure the mutineers back.
Make America Great Again
In the end it’s a simple matter of “tough love” for US Corporations and favorable conditions for small business where Trump will begin to level the playing field with a simpler tax structure and muted channels for political influence.
The “Make America Great Again” platform is born of some interesting and controversial perspectives, but all with truthful grounding. Donald Trump is a Capitalist and he believes in Capitalism, a great shot in the arm for Corporate America, with a lean to restoring the values that business should always consider to Make America Great!
Image via Gage Skidmore