The American Entrepreneur is Coming Back
- Making 2018 the Year of the American Entrepreneur.
America’s entrepreneurs have been standing on the sidelines waiting for a sign that it’s time to launch or grow their businesses. Now, with tax reform and President Trump’s shredding the anti-busines Hussein Obama-era regulations, that time is here.
Business capital spending was really, really bad over the last 8 years. Now, business pessimism seems to have waned and capital spending is heading back up, and that has something do with optimism about tax reform and President Trumps regulatory agenda.
This country can tap into this optimism by demonstrating that it stands behind America’s entrepreneurs our job creators.
The US Economy won’t grow fast unless we unleash our entrepreneurs.”
Entrepreneurs are known to be the primary source of net new job creation. Their innovations challenge existing firms to improve and contribute to economic dynamism, which results in a faster growing economy that provides greater opportunities for upward mobility.
The entrepreneurial creation of new products, systems, and processes breeds new efficiencies. New businesses are also especially important when it comes to the job prospects of young workers. Young companies employ younger workers more than older firms and these workers enjoy higher incomes.
On Top of all of this, experienced entrepreneurs often act as mentors to aspiring business owners, creating a reinforcing loop of inspiration and instruction that generates more of the new ideas our economy needs to grow.
According to the data, almost all net new jobs created in the US between 1980 and 2005 were created by firms that were 5 years old or less, that is about 40-M jobs.
Now as companies reduce their tax burdens, they will be able to reinvest and hire more employees.
It is not a secret that new and small businesses pay a heavy price to comply with ever-changing government rules and regulations.
Regulatory compliance is estimated currently to cost small businesses $1.88-T or about $15,000 per family.
The 1st-ever Small Business Regulations Survey, conducted by the National Small Business Association, found that 44% of businesses spend at least 40 hours a year dealing with federal regulations, and 29% spend at least that much on state and local rules, 75% of business owners say they have spent time studying proposed rules. About 40% of respondents claim that they have held off making a new investment because of a regulation at some point in the past.
The Trump Administration has vowed to reduce regulations significantly as part of tax reform.
An equally important part of tax reform is the shredding of Barack Obamacare, which has been a nightmare for small businesses in terms of deciphering regulations and watching insurance rates skyrocket while coverage drops.
Taking the burden of Barack Obamacare off the nation’s entrepreneurs will bring immediate financial relief and a steep rise in job creation.
As a manufacturer and exporter, the Key to tax reform is lowering the corporate tax rate so that American companies can compete on a level playing field with other nations where they have enjoyed much lower tax rates.
This will drive American manufacturers operating businesses overseas back to the United States. It is estimated that the profits that US corporations have sitting in foreign subsidiaries currently totals around $2.5-T.
Just imagine what this tax infusion will do to the American economy.
The WS-J writes that independent research suggests the tax plan could reduce the trade deficit by 50%, or about $250-B a year and deliver 1% or greater boost to annual GDP (gross domestic product).
And the most important thing about The Trump tax reform is it redistributes financial resources away from the most unproductive part of economy, government, and puts them to work at the most productive part of our economy, our nation’s entrepreneurs, small businesses, inventors and risk takers.
Now, for the 1st time in 30 years, since The Reagan Era. America has a pro-business President who knows and appreciates America’s entrepreneurial power. Things are moving in the right direction and entrepreneurs are taking notice.
The path is long, it disappears into the horizon, reaching goals requires an investment in time, concentrate, initiate action now, dream later, MAGA.
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- The 5 Safest Cities in the World - October 13, 2019
- Box Office: ‘Joker’ Laughs with another $55-M in North America - October 13, 2019
- US Q-3 Earnings, Here They Come - October 13, 2019