Trump’s antics, policy make Main Street anxious

When President Trump was elected, conservative pundits swore that small business owners across America rejoiced. While it’s true that the economy continues to grow, this is largely a result of Obama-era policies. Even more so, the real credit for the hard work should go to our entrepreneurs and small business owners across the country.

But while Main Street small businesses will continue to create jobs and anchor the economy, the president’s unpredictability and inability to deliver legislation doesn’t seem to be inspiring confidence. Research from the National Federation of Independent Business, a conservative business organization, shows that small business owners were measurably less enthusiastic in September.

{mosads}A separate survey done by mobile service company Thumbtack showed a modest sentiment increase in September, but the four months before showed straight decline. While most people in Washington will spin poll numbers to suit their story, President Trump’s erratic temperament and chaotic governing style are creating an uncertain environment for our nation’s job creators.

The president started by signing an executive order earlier this month that he claimed would help small business because it included a provision that would expand small business access to Association Health Plans (AHPs). The nonpartisan National Small Business Association says that AHPs are not the right prescription for small business owners for a number of reasons.

First, these plans could charge sky-high premiums — without limit — for small employers and individuals based on preexisting conditions of their employees. Second, AHPs would also be able to offer skimpy benefits that won’t help the consumer in their most urgent time of need.

Last, implementing this would run the risk of creating two separate pools, leaving insurers reluctant to continue to offer regulated coverage. The result could be those who need comprehensive coverage may have no options.  

Beyond that executive order, President Trump announced that he will not continue the Cost Sharing Reduction (CSR) payments required by the Affordable Care Act. This tactic does little to accomplish the administration’s end goal of dismantling ObamaCare, but it does mean small business owners will suffer another grievous hit under Trump.

In fact, according to the U.S. Treasury, one-in-five people who benefit from the marketplace are small business owners or self-employed. This action is bad for the health-care market overall, and it will also almost certainly drive up the cost of health insurance for entrepreneurs who rely upon these marketplaces for coverage.

Beyond health care, the Trump administration’s tax plan is a give-away to corporations at the expense of the small business owners. The president’s plan would give tax breaks to investment bankers and hedge fund managers at the expense of real Main Street business owners. 

The administration’s proposal to cap the tax rate for pass-through entities to 25 percent just doesn’t hit the mark. The reality is that this would benefit  only a very small number of small employers because more than eight-in-10 pass-through entities already pay a marginal tax rate of 25 percent or less.

In fact, according to the Tax Policy Center, 97 percent of the benefit from the pass-through rate would go to households already making more than $500,000 a year. This plan clearly focuses solely on helping large corporations and not building the middle class.

The Trump administration and their allies in Congress are trying to dress up policies that only help the wealthiest Americans in what they call “small-business-friendly” policies. They clearly benefit someone, but not the people on Main Street. There is not one business owner who would run his or her business like this administration is trying to run America. 

No matter how you slice it, confidence is clearly down, and small business owners aren’t buying what the Trump administration is selling.

Rhett Buttle is the founder of Public Private Strategies, a consulting firm with a focus on where the public and private sector meet. Previously, he was the business director for Secretary Hillary Clinton, an appointee on The White House Business Council and the director of private sector engagement in the Office of the HHS secretary. He also served as president of the a national business advocacy organization. Follow him on Twitter @rhettbuttle.