What Obama’s Re-election Could Mean for Small Women’s Businesses
A quick reminder before we get to our WomensNet.net update… We’re now reviewing applications for the November Amber Grant for women. And, yes, if you’d like to be considered for the grant, we’d love to hear your story!…
With the recent re-election of President Barack Obama, you may be wondering what this outcome means for small women’s businesses like yours over the next four years. While we can’t be absolutely certain what the next presidential term will bring, and President Obama may not deliver on every goal he has, here’s a look at some issues that may affect your business.
Tax cuts for small businesses: Obama has called for tax cuts that would benefit many small businesses. He’s advocated for the corporate tax rate to drop to 28 percent from its current 35 percent. Manufacturers would pay no more than 25 percent. He’s also backing more liberal tax deductions for small businesses that invest in new equipment. Obama might find willing partners on the Republican side to help him make these cuts.
Startup assistance:According to The Wall Street Journal, the Jumpstart Our Business Startups Act – signed by Obama earlier this year – could help business owners obtain capital more easily. This should be exciting to women business owners looking for money: The Act includes a provision allowing small businesses to raise as much as $1 million in equity funding over the Internet through crowd-funding websites that will have to register with the Securities and Exchange Commission. The provisions could go into effect as early as January, though some delays make take place.
Health care costs: Obama’s re-election means the health care overhaul moves forward. Key provisions of the law won’t go into effect until 2014, including the requirement that businesses with 50 or more employees provide affordable health insurance for their workers. The exact cost of that is not yet known – probably won’t be until states set up exchanges where individuals and companies can buy coverage.
Capital Gains Tax: If you’re looking to sell a small business, this one is for you. President Obama and Congress agreed in 2010 to extend Bush-era capital gains tax rate of 15 percent through the end of 2012. With his re-election, that 15 percent rate is likely to continue – but he has proposed extending the tax rate only to those who report under $250,000 in income. Those making more will probably revert to the old rate of 20 percent.
Spending cuts: In an effort to address the federal deficit, Obama plans to curtail spending – which could include federal contracts. On the one hand, this may mean revenue loss for small businesses, and could also lead to job cuts by those businesses. However, if the deficit problem is ignored, taxes would most likely rise in coming years, which could leave small business owners with less money to invest in their companies.
Business regulations: Obama has a bit of a mixed record on regulation, and that’s likely to continue. He’ll most likely create more rules that small businesses will need to follow, but he also puts a focus on trying to keep those regulations from being overly burdensome. Policies to foster small business are expected to continue to be a priority.
That’s all for today. We hope you have a great week!