As the 2024 election approaches, small and medium-sized businesses (SMBs) are closely watching the potential impacts of either a Trump or Biden victory. Both candidates have distinct policies that could shape the business landscape in different ways. Here’s an analysis of what SMBs might expect under each administration.
If Trump Wins
Economic Policies
- Tax Cuts: Trump’s administration may continue advocating for lower corporate taxes. This could mean more capital for SMBs to reinvest in their operations.
- Deregulation: Expect further deregulation, particularly in industries such as energy and finance, which could lower compliance costs for SMBs.
- Trade Policies: Trump’s focus on America-first trade policies might lead to more tariffs, impacting SMBs reliant on international supply chains.
Labor and Employment
- Wage Regulations: There may be less emphasis on increasing the federal minimum wage, which could help SMBs manage labor costs.
- Employment Policies: Policies that favor business owners over worker protections might be prioritized, impacting employee benefits and labor rights.
Health Care
- Affordable Care Act (ACA): Efforts to dismantle the ACA could resume, potentially reducing health insurance costs for employers but also making it harder for employees to obtain coverage.
If Biden Wins
Economic Policies
- Tax Increases: Biden has proposed increasing corporate taxes, which might strain SMB finances, but the impact may be less severe for smaller businesses.
- Support for Green Energy: Increased investment in renewable energy could create opportunities for SMBs in related sectors.
- Infrastructure Spending: Significant infrastructure spending could benefit SMBs involved in construction, manufacturing, and technology.
Labor and Employment
- Minimum Wage Increase: Biden supports raising the federal minimum wage, which could increase labor costs for SMBs but also boost consumer spending power.
- Worker Protections: Stronger worker protections and benefits might be implemented, potentially leading to higher costs for employers but better conditions for employees.
Health Care
- ACA Expansion: Biden may expand the ACA, making health insurance more accessible and affordable for employees, which could benefit SMBs by creating a healthier workforce.
Conclusion
The outcome of the 2024 election will undoubtedly have significant implications for SMBs. Trump’s potential continuation in office could mean lower taxes and fewer regulations, which might benefit business owners directly but could come with increased trade tensions and challenges in employee health care. On the other hand, a Biden victory could bring higher taxes and stronger worker protections, balanced by increased infrastructure investment and a more accessible health care system.
SMBs should stay informed and prepare for the potential shifts in policy that will come with either administration. By understanding the possible changes, business owners can better strategize and adapt to maintain growth and stability in an evolving economic landscape.