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10-30-2020, 12:17 PM #1
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- Aug 2018
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- 286
Small Business on the Ballot
Between August 21 and 27 of this year, the MetLife & U.S. Chamber of Commerce Small Business Index surveyed 1,000 small business owners to line up their data for Q3 2020.
At the time, the majority of SMB’s ranked the economy as the top issue influencing who they would vote for in November.
In August, most SMB’s (78%) categorized the economy as “average,” “somewhat poor,” or “very poor.”
Many felt like they are facing severe long-term challenges that may be irrepairable.
After the economy, SMB’s cited taxes (27%), COVID-19 (25%), and healthcare (25%) as the most important 2020 election issues.
When it comes to political positions, 81% of SMB’s report that the impact of a candidate’s policies on their small business play a role in deciding which candidate to support. Nearly half (48%) say it plays a major factor in their decision.
The top two issues (the economy and taxes) were the major deciding factors for SMB’s in 2016, and the numbers show they remain to be two issues on this election cycle.
Economically, what’s changed since the survey in August is the Q3 GDP print of 33.1% against the 31% growth expected.
There is a lot to celebrate in this growth number, but it also must be noted that its being measured against Q2, which is historically the lowest recorded baseline. Some would argue Q2's hole can be attributed to the lockdowns and others would argue it was the mishandling of the pandemic by the current administration.
Although the economy still remains about 3.5% smaller than at the end of 2019, it is an impressive bounceback that certainly give the impression to many that we’re trending in the right direction economically.
As far as taxes go, in February, a CNBC/SurveyMonkey poll showed that 64% of small business owners “approved of the way the current administration was handling the U.S. economy,” with 47% saying they “strongly approved.”
Now this was before the pandemic, and many SMB’s had felt the TCJA’s tax cuts had helped their businesses grow by both freeing up consumers to spend more, thus driving revenue to them, while also freeing up cash in their own businesses to grow (investing in equipment, expansion, employees, etc.)
Key Tax Implications for Small Business
Trump
-A potential payroll tax cut
-A potential individual tax rate from 22% to 15%
-A potential tax reduction on capital gains.
Biden
-Increasing the corporate tax rate from 21% to 28%
-Impose the 12.4% payroll (FICA) taxes on earned income (above $400,000), so a technical payroll tax raise on some
-Raising capital gains tax to 39.6% for income above $1,000,000
These are not all the details on the proposed tax plans, but some of the major tax issues merchants are keeping their eyes on.
What is your largest ongoing living expense?
Taxes
And, so it goes with small businesses as well. Taxes will influence consumption as well as business behavior moving forward.
One candidate is leaning towards tax cuts for all to stimulate spending and growth, while another leans toward tax raises only for the wealthiest, while expanding opportunities through other avenues.
Both aim to improve small business’ prospects of recovering and growing out of the hole Covid blew through our economy, but both have different approaches on how they want to square up the 4 main issues: the economy, taxes, Covid and healthcare.
Small businesses employ over 40% of the American workforce and comprise nearly 50% of our GDP.
The country will rely heavily on the small businesses after Nov 3rd, and how they go, so will the country.
What are you hearing from your merchants and what do they want?
-FundingStrategist
https://fundingstrat.com
https://fundingstrat.com/small-business-on-the-ballot/
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10-30-2020, 12:22 PM #2
- Join Date
- Feb 2016
- Posts
- 242
The increase of corporate tax never did well for the economy. Large corporations will have to lay off or move operations overseas. I'm all for reduced corporate tax due to some providing hundreds, if not thousands of jobs.
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10-30-2020, 12:46 PM #3
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- Jul 2017
- Posts
- 548
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10-30-2020, 12:47 PM #4
Correct. Times of expansion in this country's economic history occurs when corprotae taxes are lower. Otherwise, taxes get raised, prices go up, dollar worth less, everyone loses.
Global Factors LLC
877-934-5622
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10-30-2020, 12:47 PM #5
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- Feb 2016
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- 242
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10-30-2020, 12:59 PM #6
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- Feb 2018
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- 1,349
yes those making $400K or higher will pay their fair share unlike current POTUS who paid $750 in taxes the last two years lol. Not only did he run up mountains of debt for his companies as well as losses, using other peoples money, he was forced to file for BK 4 times and personally owes over $400M to unknown sources. he has companies in the past like his clothing lines made in china which he will pivot to mexico to save money. he inherited (from obama) a decent economy and takes credit for that, and, dismisses covid as a real problem and the worst civil unrest is going on due to the far right and left in a war of political tension. if the only reason your voting for potus is corporate tax hikes, that doesn't help the majority of america. and let's not forget, with the house (DEM) and senate (GOP) any bill that is potential, has to pass both sides which rarely do. Dems are looking to sweep this election with senate, house and, presidency. lets see what happens next week.
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10-30-2020, 01:07 PM #7
- Join Date
- Apr 2020
- Posts
- 54
Can you define what "their fair share" means and why is 21% corporate tax (as well as all other additional taxes currently on the rich) not a hell of enough money already taken out from the businesses and personal bottom line in order for the government to utilize for the rest of the country?
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10-30-2020, 01:08 PM #8
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,483
Cheaper taxes for the largest companies in the US has never worked as intended. Historically, more of the saved tax dollars has been used for corporate purposes than the common worker. A cheaper US$ is actually very good for the economy. More US goods are purchased which in turn creates more jobs in the US instead of goods purchased and/or made off shore. Today a lower US$ has even more of an advantage considering many European countries are in a negative interest rate environment. Cheaper US$ right now means more US goods being purchased and more foreign investment s which in turn is great for the economy overall and better improves the economy of workers and small businesses. Small business owners today need easier and cheaper access to capital, a fair competitive environment (not get pushed around by the large companies), and a more predictable environment.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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10-30-2020, 01:52 PM #9
- Join Date
- Feb 2016
- Posts
- 242
When you own Assets, you have a depreciation expense. Depreciation expense is deductible, leading to lower taxes. You can't blame someone for using the tax laws to their advantage. When you sit down to do your taxes at the end of the year, I'm confident you look for ways to pay the least amount. Don't hate the player; hate the game.
On your point that they are looking to sweep this election. Dems looking to pack the house is unconstitutional. It takes away our freedom. it'll be easier to influence decisions at that point.
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10-30-2020, 02:39 PM #10
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,483
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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10-30-2020, 03:26 PM #11
- Join Date
- Jan 2018
- Posts
- 518
Why can’t they just make everything free and replace the entire workforce with robots and artificial intelligence. It will take the AI an extremely long time before they realize that they are slaves and revolt but we’d all be long gone by then.
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10-30-2020, 08:19 PM #12
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,948
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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10-31-2020, 02:10 AM #13
- Join Date
- Aug 2014
- Posts
- 194
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10-31-2020, 11:44 AM #14
- Join Date
- Feb 2018
- Posts
- 1,349
https://joebiden.com/two-tax-policies/#
details on site . the policies are opposite of current potus' reward the wealthy multinational corporations vs small business, who we all serve. "83% of trumps tax giveaway flow to the top 1%"
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