Small Businesses: Winners No Matter Who Wins the Election?

Both Democrats and Republicans are courting small business owners ahead of the election. With a high trust rating and employing nearly half of the private sector workforce, small businesses are a significant player. However, owners are uncertain about the election's impact. Small business confidence is low, with the NFIB's Optimism Index dropping for 33 months. This uncertainty could be due to the election or the lingering effects of the pandemic. Political parties approach small businesses differently: Republicans favor tax cuts and deregulation, while Democrats focus on start-up support and tax deductions. For Jim Croley, owner of the Wooden Keg Tavern, the election's outcome is uncertain. He appreciates the focus on new business growth but thinks supporting existing businesses is crucial. Richard Trent, from The Main Street Alliance, argues that Republican policies could increase the deficit, raising the cost of capital for small businesses. A key unresolved issue is the future of the Section 199A deduction, set to expire in 2025. This deduction allows pass-through businesses to reduce their taxes. While Democrats are considering reforms, Republicans want to make it permanent. The election is crucial for small businesses, but it's not just about politics. Many factors influence owners' decisions, and the future of tax cuts and deductions will significantly impact their operations.