Dear DNC Small Business Owners Council Member,
Please see below for a press release from the DNC War Room.
Democratic National Committee
Small Business Week Marked By Trump’s Failures To Help Small Businesses
As we celebrate small business week, here’s a look at some of the many ways Trump has failed small businesses across the country:
Small businesses have not benefited from Trump and Republican policies.
Associated Press: “As Small Business Week starts today, the nation’s smallest companies in the aggregate are by many accounts doing fairly well. They’re not, however, thriving en masse in direct response to Trump administration and Republican policies. Small-business hiring is erratic, according to numbers released by payroll provider ADP.”
Trump’s tax law did not help small businesses as Republicans claimed, and many small-business owners actually owed more in taxes.
Associated Press: “Overall, it appears the tax law didn’t help small businesses as much as the GOP predicted. In a Bank of America survey of 1,504 small business owners released last week, 28% said the government’s tax policy has been positive for their companies, down from the 45% who predicted a year ago it would be positive for them. Half said it was neutral, up from 39%, and 21% said the policy was negative for their companies, up from 15%.”
Business Wire: “This quarter’s survey specifically looked at how small business owners felt about their tax situation a year after the reformed tax regulations took effect. Nearly half of business owners (48 percent) indicated that the recent legislation had little effect on their 2018 taxes, while 51 percent said the same regarding impacts to their business overall. When asked how their total tax bill for 2018 would be impacted, 56 percent said it would be about the same as expected, while 22 percent predicted higher and 12 percent said lower.”
Trump’s “small business tax break” actually overwhelmingly benefited the wealthiest 1% and big real estate developers.
Bloomberg: “A perk pitched as a boon for mom-and-pop businesses in President Donald Trump’s tax law could shut out smaller real estate investors while benefiting the industry’s largest property developers. The Treasury Department released final rules recently detailing how owners of businesses such as limited liability companies and partnerships can claim as much as a 20 percent deduction.”
CBS News: “The pass-through deduction has sparked plenty of other questions, such as whether the measure will benefit the wealthy more than middle- or low-income workers. The top 1 percent of income earners will grab more than half the benefit from the deduction, according to an estimate from the Tax Policy Center. By comparison, the lowest quintile of workers—those in the bottom 20 percent of the income distribution ladder—will receive just 0.1 percent of the benefit, the group forecast.”
Small businesses are growing pessimistic about the outlook of the economy.
Associated Press: “Meanwhile, surveys by Bank of America, Wells Fargo, Capital One and the U.S. Chamber of Commerce and MetLife show that small-business owners have been losing some of their optimism as doubts linger about the strength of the current economic expansion.”
Forbes: “The March NFIB Small Business Optimism Index showed a drop in the number of business owners who viewed inventories as too low, as well as reduced expansion plans. That may explain some of this decline.”
Associated Press: “The growing evidence of a slowdown in manufacturing is likely contributing to the dip in small business optimism that began early in the year. Reports this month from the government and an industry group point to a drop in manufacturing activity. While the manufacturing sector is a relatively small part of the gross domestic product — the government has estimated it at 11.4 percent in the third quarter of last year — most manufacturers are small businesses as are service companies that do business with them.”
Gallup: “U.S. small-business owners are less optimistic about business conditions now than they have been over the past year. The Wells Fargo/Gallup Small Business Index, which measures small-business owners’ attitudes about a wide variety of factors affecting their businesses, is down to +106 in Quarter 1, 2019, from the record high of +129 set in Quarter 4, 2018. The current drop erases the gains in confidence seen in the last two quarters of 2018 and returns the index to where it was from Quarter 3, 2017, through Quarter 2, 2018.”