To:

Anna Wolfe, The Clarion Ledger

From: Ron Aldridge

NFIB Mississippi State Director
National Federation of Independent Business
601-201-1323 (cell)
ron.aldridge@nfib.org
Re:

Impact of Trump as President on Small Business

The one constant thing that has remained certain throughout the past several years and this
presidential election is the deep uncertainty of small business owners about the future.
That uncertainty has produced an agenda of small business that seeks to limit and/or stop the
federal governments over-regulating, over-spending, over-taxing, and Obamacare. Generally
small business is excited to hear President-Elect Trump voicing many of these same concerns.
Just prior to the presidential election, a 42-year high was reached for the NFIB Small Business
Uncertainty Index. Such uncertainty of the near future among Americas historical #1 job
creators - small business - has generally produced a paralysis of a willingness by them to hire,
invest, expand inventory, or to make any of the common business decisions that propel the
economy. America has historically relied on small business to produce about 2 out of every 3
net new jobs, and predictability of the future is essential for that to continue.
This explains why the U.S. economy has grown at a snails pace, barely above one percent, for
years, and why job creation has been painfully slow.
An NFIB October, 2016 survey of small businesses showed that taxes and government
regulations/red tape tied for the single most important problem for their business and quality of
labor came in third.
TAXES
To resolve the tax problems, small business owners strongly favor:

a single business tax rate that would reduce taxes for all business and create parity between
small businesses, composed mainly of pass-through businesses, and large corporations.

repealing the estate tax which forces many small business and farm families to liquidate their
business in order to pay the tax and rob others of the capital they need to invest and grow
their business and jobs.

INCOME TAX
During the campaign Trump initially promoted a tax plan that coincided with the desires of small
business, which reduced the business tax rate to 15 percent, including large businesses as well
as small businesses which mainly include pass-through businesses (sole proprietors,
partnerships, S corporations, and LLCs) whose owners pay their part of a business income
taxes on their individual/joint spouse return at individual/married tax rates.
However, Trump later revised his business tax plan and excluded the small pass-through
businesses, so only time will tell which direction he chooses or what changes the Congress
ultimately may deliver to his desk.
We hope that his continuing overall goal of an across-the-board income tax reduction,
especially for middle-income Americans will give the fairness of parity and level playing field
small businesses deserve with their larger counterparts.
He has consistently pushed to simplify the tax code in line with the wishes of small businesses
ninety-one percent of which have to hire professionals at great expense to ensure compliance
with the extremely complicated and ever-changing tax code requirements.
ESTATE TAX
Trump has also agreed with small business that the estate tax needs to meet its final death.
Mississippi small business owners believe its not only time for the federal tax code to be
overhauled, but the time is right with Trump, the Congress and the American people all eager
to get rid of much of its arbitrary and inconsistent tax preferences and its complexity, and
replace it with a simpler and fairer tax system that is not constantly changed as it has
continuously been.
REGULATIONS
In regard to federal regulations, they are crippling any growth of small businesses due to their
excessive costs for compliance and penalties and the increasing uncertainty on a small
business future because of the ever-increasing barrage of regulations.
They have contributed greatly to why the small business economic engine of job growth has yet
to revive from the great recession, which is unfortunate for the American economy as well.
Trump has assured small business that his reforms to regulations will make it easier for small
business to thrive. To thrive, many recent regulations must be overturned. A sample few of

them include the Department of Labors 40-hour overtime rule, the IRS tax penalty for employer
healthcare reimbursement to employees, and EPAs waters of the U.S. rule.
OBAMACARE
President-elect Trump has campaigned on the repeal and replacement of Obamacare. That fits
well for small business as long as any replacement solves the longstanding most critical issue
for most small businesses since 1986 the rising costs of health insurance something that
Obamacare never did solve. Costs have continued to skyrocket with the recent clamor of
elected officials of both parties calling for substantial correction of Obamacare.
NFIB has consistently stated from the beginning of the healthcare debate that healthcare reform
must include reducing mandates, reducing taxes on medical services and health insurance
plans, reducing frivolous lawsuits, and which creates a national marketplace that would creat
more competition, more choices, and therefore lower prices.

MINIMUM WAGE
With labor costs being one of the largest parts of a small business budget, NFIB and small
business have opposed federal minimum wage mandated increases. Trumps position has not
been clear, although his party generally agrees that any potential increase should be a state-bystate decision, not a federal one.
The costs of living in Mississippi doesnt compare with living in New York City or Los Angeles
and wage rates cant fairly be standardized across the country. Only about 4 percent of all
hourly paid workers earn the minimum wage and generally dont remain at minimum wage
beyond a year, however, an increase forces other increases to higher paid workers. An acrossthe-board mandated wage increase would devastate small business and cost America and
Mississippi numerous jobs.
FUTURE
Predictability is essential for small business and Americans to prosper. One certainty thats
obvious from the election is that the American people have reached their limit and now expect
action, not just political promises.
If our nations historical economic engine and top job creator, small business, is expected to help
make America great again and for Trump to be the greatest jobs president, then the voice of

small business needs to be heard and our new President and the Congress need to work
together. Small business is ready to do its part if government will remove the numerous unfair
and oppressively burdensome and costly hurdles its put in its path. Whats good for small
business and its employees is great for America!