The 2018 midterm election brought Democrats back to power in the House while Republicans kept control of the Senate. The exact future and policy focus is still unclear but the results do give small businesses an idea of what they should be expecting moving ahead.
It is expected that there will be gridlock on many of the major financial and economic policies that are offered up. However, congress could tackle some bipartisan packages early that could have an effect on small businesses. One of which is a retirement package that would make it easier for small businesses to offer its employees retirement plans. The other is an infrastructure bill that could be passed if an agreement on funding is made. Other major concerns may have to wait as Congress will be split on almost every economic issue.
The Midterm Affect on the Economy
Economic growth is one of the most important issues to small businesses this election cycle. Midterms are often overlooked as not having a big impact on policy, but the opposite is true. The midterm election has significant impact on policy as well as how smoothly the government operates.
For small business owners, the economy and regulation reigns most important overall. Small business owners often vote on major issues that revolve around the success of their business. These issues tend to be centered around taxes, trade, economy and healthcare.
Economic growth is an important issue for all small business owners. If the economy is growing then often your business will too. Small business owners are currently feeling the growth of the economy from the last election but it is in speculation as to whether or not the growth will continue. Economists believe that the growth will more than likely continue, just in a slower more leveled off fashion.
Tax policy is almost certainly a huge topic for small business owners. There is still some issues and concerns surrounding Trump’s new tax plan that business owners are hopeful to get resolved. The tax cut is there, however some small business owners have not seen the results of it yet. Additionally The IRS recently released information on who qualifies and it is not everyone. Small business voters will be looking for a more secure tax break and a good road map they can follow in the upcoming years. However tax policy is a hot button issue and there will like not be a whole lot of agreement within congress.
It seems the the healthcare debate will largely go unchanged. There will still be the argument for single-payer programs vs the shift away from the Affordable Care Act. As it is seen now, congress is split on this issue and it will foresee more gridlock if not a slight shift away from the single-payer system.
Overall small business owners are generally optimistic about the results and are still riding the wave of economic growth. Due to the economic growth it is expected that small businesses may look forward to improved access to capital and capital investments as well as confidence in a decrease of small business regulations that would improve the small business economy further.