What the Midterm Elections Mean for Small Businesses
The 2014 midterm elections saw a large shift in the political dynamic in Washington, with Republicans taking control of the Senate and winning key governorships. Political commentators have been speculating about what this election means for many different things, including small businesses.
Job creation is a major concern during election time. According to an article by Inc., experts believe that other than tax cuts, which could help create jobs, experts referenced in the article are not optimistic about the number of jobs that will be created by republican economic proposals. They claim that there is a gap between proposed legislation and job growth.
Analysts say that a government shutdown—like the one in 2013—is possible. Some analysts believe that a shutdown as a show of power could take place before the 2016 presidential election. Using the 2013 shutdown as a base of comparison, it seems as though another shutdown would affect small businesses in multiple ways. An article published by Bplans layed out these potential setbacks, such as delayed transportation and energy projects, impacts on trade, holds put on federal loans to small businesses and effects on travel and tourism due to national parks and monuments being shut down.
Internet Sales Tax
One major issue in the ongoing tax conversation is Internet sales tax, or the Marketplace Fairness Act (MFA). Spearheaded by Senate Majority Leader Harry Reid (D-NV), this piece of legislation would allow state governments to collect sales tax from online retailers located out of state. If the MFA or similar legislation is passed, online small businesses will need to start paying sales taxes that didn't exist before, and as a result, may have to raise prices of online products.