What smallbiz wants from next President

Small business is something just about all politicians claim to support–like our troops or the middle class. But like military vets frustrated with healthcare backlogs at the VA and working parents scuffling to pay for child care, anxiety among small business owners is up.

Earlier this month, a survey of nearly 1,300 small business owners–those with between five to 499 employees–was released by Bizjournals, a network of business newspapers. The survey found that 46%  of respondents identified as Republican, 19% as Democrat and 35% as independent or undecided. (Republicans tended to skew older and male, had higher net worths and had been in business longer. Democrats were younger, with the highest share of women- and minority-owned businesses, 21% of whom had been in business under 10 years. Undecideds skewed younger and male with 19% in business under 10 years.)

Republicans and undecideds rated the cost of health insurance and other benefits as their top concerns, while Democrats said attracting new customers was their top concern.Whichever way small business owners vote, it’s going to be a day of reckoning. Small businesses have grown tremendously in recent years and now account for two-thirds of all new jobs created in America.

According to recent articles in Fortune and Inc., here are five key issues small businesses are concerned about and what Democratic and Republican presidential nominees Hillary Clinton and Donald Trump have said on the issues.

  • Healthcare.  The passage of Obamacare in 2010 was one of the biggest expansions of the social safety net in decades. Concerns among small business owners have mounted since the beginning of 2016, where businesses with 50 or more employees are required to offer coverage of pay tax penalties. Clinton wants to improve Obamacare by working to create a public option, by making premiums more affordable and lessening out-of-pocket expenses for consumers. That might include tax credits of up to $5,000 to offset excessive expenses and premium costs above 5% of income. Trump has said he would repeal Obamacare and essentially let states deal with healthcare for their residents. That would include changing regulations and to let states buy and sell insurance across state lines.
  • Taxes and Incentives. No issue hits home more than taxes. While businesses are taxed at 15% for the first $50,000 of income, that rate could jump as high as 39.5% as income increases. The issue is complicated for entrepreneurs. Many are sole proprietors and therefore business and personal income are one and the same. Also many run S-Corps, which means profits and losses pass through to the owners’ own income. Clinton wants to offer tax relief, lower fees for small business loans and expand access working capital to entrepreneurs so they can hire and grow. Under Trump’s plan, top earners would pay a maximum personal-income tax rate of 25 percent and corporate taxes would be reduced to 15%. S-Corps and other pass-through entities like LLCs would also have a top tax rate of 15%.
  • Trade. The U.S. is in the final round of negotiations for the Trans-Pacific Partnership (TPP), which potentially creates an 11-nation block involving 40% of the world’s economies in Latin America and Asia. TPP would reduce tariffs and create minimal standards for working conditions in many developing countries. Both Clinton and Trump say they are opposed to TPP.
  • Business Regulations. This is another issue that riles small business owners, in part, because many can’t afford to retain a cadre of tax accountants and lawyers to wade through thousands of pages of regulations.Clinton wants to start a nationwide effort to cut red tape for small businesses at every level of government. Trump supports the Regulations From the Executive in Need of Scrutiny (REINS) Act, requiring an up-or-down vote by Congress on regulations with significant economic impact. The legislation passed the House in July 2015 but has stalled in the Senate.
  • Minimum Wage. Raising the minimum wage is a big issue with small business owners.Earlier this week, Trump called for a federal minimum wage of $10 an hour, departing from past positions and his own party. Clinton has said she supports a $12-an-hour federal minimum wage, but states and cities should be allowed to set higher floors if they have local support, as some have done. The Democratic Party officially backs $15 an hour imposed over time.