Monday, September 26, 2016

Hillary Clinton and Donald Trump on Small Business

From the American Institute for Economic Research

Politicians love to talk about small business, but often use the topic for a quick photo op and feel-good story about the economy. However, both major presidential candidates are proposing policies that are highly relevant to small business owners.

Hillary Clinton focuses on “leveling the playing field” between small and large businesses, while Donald Trump advocates policies intended to help businesses regardless of size. A comparison of these proposals highlights an interesting question: How differently should the government treat small and large businesses?

Clinton’s website has a page dedicated to small business, including those photo ops, but also a sizable list of policy proposals. Virtually all of the proposals focus on the premise that small businesses face greater or different challenges related to taxation, financing and regulation than their large counterparts. Perhaps the proposal of Clinton’s that could have the most impact is a new standard tax deduction for small businesses...

Donald Trump’s website makes no specific mention of small business, but puts forward some policies aimed at business in general. Trump proposes limiting taxes to 15 percent for all businesses, lower than the current average rate of 19.8 percent paid by small business, according to the Small Business Administration. He proposes a review and prioritization of regulations by every federal agency, as well as trade reform...

So is it more effective to have policies specifically targeted to small businesses, or to simply target business in general?

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