The reality is, sadly, much too simple. Those who voted Donald Trump into office for his first administration will never be swayed to admit what carnage there was during that time for small and medium sized business.
Before you start tuning up with responses, read on.
That doesn’t mean we can’t try to make some sensible fact of those four years, but it would seem that no matter what facts and figures are brought to bear in this conversation, the negatives will be drowned out by Trump followers as little more than lies and “radical left wing thinking”, while any positive will be verbally pummeled as nothing more than “another pack of MAGA lies”.
Stop it. Take a breath. Take several, if need be.
It’s a tough room, to be certain. It would seem there is no win here, no wiggle room, no space for rational discussion. It would seem this argument is over well before it gets steamrolling.
Take another breath.
Let’s move forward with the thinking that we must, whether we voted for the man or not, want him to create and administrate successful policies for small and medium sized businesses here in America. Sure, even for the big dogs. But they must be fair. They must be even-handed. They must take every level of business into consideration.
Having laid just a touch of groundwork here, we still need to dig in and seek the truth about what is on the horizon for American business in a second Trump administration. We should note that if Trump takes a different tack from his first go-round, and he must, America always has the possibility of sitting on the precipice of a new golden age. That’s what we do. It’s what we have the capacity for. But Trump and Congress must do their part, or we are resigned to four more years of potential struggle and discourse.
Trump, and again, let us not forget the decided Republican Congress, must decidedly veer from what occurred the first time. In conjunction, American workers and businesses need to stand and demand matters be taken that will benefit all levels, not just the corporate glad-handers and overtly wealthy.
Therein lies the issue.
Donald Trump’s first presidency was marked by economic policies that produced mixed results, and that is being kind. While his administration achieved significant tax cuts and deregulation that initially stimulated growth, the benefits were heavily skewed toward corporations and the wealthy. Small and medium-sized businesses, the backbone of the U.S. economy, often found themselves left out of the larger economic narrative, and the long-term consequences of his policies created significant concerns for their growth and sustainability.
Simply stated, Trump's economic policies in his first administration were a disaster for small and medium sized business in numerous ways.
Granted, as in every case, there were extenuating circumstances that accompanied the negative impact on all levels of business. The fact is Trump was and remains one of the most short-sighted Presidents in American history. While he lauds himself with cries of short-term success, what often starts as a promise of improvement winds up in the bargain basement of unfulfilled rhetoric.
Donald Trump revels and basks in the limelight of celebration, such as always showing off his signature in proclamations and demanding all focus is riveted on him, now the substance of what has been accomplished. All politicians are narcissists. Some just crave it much more than others.
The Positives: Deregulation and Initial Tax Relief
Trump's administration enacted sweeping deregulation efforts, which many small businesses initially welcomed. The reduction of red tape in sectors such as energy and manufacturing allowed for quicker project approvals and fewer compliance costs. Similarly, the Tax Cuts and Jobs Act (TCJA) of 2017 lowered the corporate tax rate from 35% to 21%, and pass-through businesses, which include many small enterprises, received a 20% income deduction.
This tax reform boosted short-term confidence, and some small businesses reinvested in hiring or expanding. The economy saw rapid growth in GDP and record-low unemployment rates before the COVID-19 pandemic. For small businesses in certain industries, especially construction and services, these policies were a temporary boon.
The key words here are “short-term” and “temporary”.
The Negatives: Favoritism Toward Corporations and the Wealthy
Despite the initial optimism, the Trump administration’s policies disproportionately benefited large corporations and the ultra-wealthy. According to the Tax Policy Center, by 2027, over 80% of the tax benefits from the TCJA will accrue to the top 1% of earners. Meanwhile, middle-class households and small businesses saw minimal long-term benefits, with many facing tax increases once temporary provisions expired.
The corporate tax cuts primarily served large multinational corporations. While these firms enjoyed windfall profits, the anticipated "trickle-down" benefits for smaller businesses and employees often failed to materialize. Instead, many corporations used their tax savings for stock buybacks, enriching shareholders rather than reinvesting in the broader economy.
Trump, along with many of his economic and political peers, salivate at the thought of “trickle-down economics”, still incorrectly believing they work. They never have, and in today’s global economy, they never will. It’s a fools game that Trump and those like him have managed to make people believe actually benefits them. Nothing could be further from the truth.
For small businesses, the promised tax relief often turned into a complex web of new rules and limitations. Many entrepreneurs found themselves excluded from the larger tax breaks afforded to big businesses, leaving them at a competitive disadvantage.
Trump is certainly not the first President to kiss the seat of corporate power. He is merely the most evident President to do so smack in the open before the world, and now fearing any fallout. Trump has already proven that what it comes to the inevitable bad news of his policies, he can ride it out and emerge victorious thanks to continuous obfuscation of reality.
The Cost of Tariffs and Trade Wars
Trump’s trade policies, particularly tariffs on Chinese goods, hit small businesses hard. While Trump aimed to protect American industries, many small and medium-sized businesses reliant on imported goods or materials faced increased costs. A study by the Federal Reserve estimated that the tariffs reduced GDP growth by 0.3% and cost approximately 300,000 jobs.
Small manufacturers, retailers, and farmers struggled to absorb these higher costs or pass them on to consumers, leading to reduced profit margins and financial strain. While large corporations had the resources to weather trade disruptions or shift supply chains, small businesses lacked such flexibility.
On the issue of tariffs, Trump wields it like a club, and has no fear of whom he bloodies. Let me invite you to revisit my recent column on the facts about these taxes and punishments.
Tax Inequities: Burden on the Middle Class
The TCJA exacerbated economic inequality, placing a heavier burden on lower-income and middle-class Americans. For small business owners and employees, this disparity was evident in rising healthcare costs and stagnant wages. While corporate profits soared, many small enterprises struggled to compete with the advantages afforded to large corporations.
The growing national debt, fueled by tax cuts and increased government spending, also posed a long-term risk. The Congressional Budget Office projected that the debt would reach unprecedented levels, potentially leading to higher taxes and reduced public investment—factors that could stifle small business growth in the future.
Donald Trump promised to reduce the National Debt. This may still turn out to be his most crushing blow to America. He increased the debt to levels that will crush families and businesses for generations. As in all other cases, the facts do not lie.
The COVID-19 Crisis and Small Business Fallout
The COVID-19 pandemic underscored the vulnerability of small businesses under Trump’s policies. While programs like the Paycheck Protection Program (PPP) provided short-term relief, the administration’s uneven rollout disproportionately benefited larger businesses with established banking relationships. Many small businesses, particularly minority-owned enterprises, were left behind or received insufficient aid.
The lack of comprehensive healthcare reforms also left small businesses struggling to provide affordable coverage for employees during the pandemic, further eroding their financial stability.
Trump’s leadership and decisions during the pandemic were, again, short-sighted and ballyhooed for maximum PR and marketing effect.
Concerns for a Second Trump Administration
Here’s where there needs to be much more scrutiny and attention paid to what has been promised in light of what we have already seen.
A second Trump presidency raises significant concerns for small and medium-sized businesses. The potential continuation of tax policies favoring corporations and the wealthy could exacerbate inequality and leave smaller enterprises at a disadvantage. Similarly, Trump’s stance on trade and tariffs could further disrupt supply chains, driving up costs for businesses reliant on international goods.
Moreover, Trump’s approach to deregulation, while beneficial in some areas, risks creating an uneven playing field where small businesses are unable to compete with larger, more resourceful competitors.
What Needs to Change?
Let’s give Trump some benefit of the doubt, despite the pesky fact that he has not earned it in light of what we’ve discussed here. Let’s look to potential positives that he could bring forth, if he indeed is thinking about the American people and those small and medium sized businesses still looking for help.
To truly support small businesses, Trump—or any future president—must implement policies that address the structural challenges they face:
Tax Reform for Small Businesses: Simplify the tax code to provide clearer and more substantial benefits for small businesses, ensuring they aren’t overshadowed by corporate tax cuts.
Access to Capital: Expand loan programs and grants specifically for small enterprises, particularly in underserved communities.
Fair Trade Policies: Negotiate trade deals that reduce tariffs and create opportunities for small businesses to compete globally.
Healthcare Solutions: Develop affordable healthcare options that alleviate the burden on small businesses.
Support for Innovation: Invest in programs that help small businesses adopt new technologies and compete in the digital economy.
Donald Trump’s first term demonstrated a glaring imbalance in economic policy, aided by a complete lack of understanding the interaction between national and international economic policies. While large corporations and the wealthy thrived, small and medium-sized businesses were often left to fend for themselves.
Donald Trump holds the power to enact positive change for businesses of every size. He has shown no steady desire to make those possibilities a reality. He has demanded fealty from those who need him to become wealthier, and he has bowed his head to work in favor of those who can make him wealthier and more powerful.
That is not what America needs right now, and that is not what America should stand idly by and allow to transpire.
Trump and his Congress must now, more than ever before, have their collective feet held to the fire and be forced to do what is best for all America.
Does he, do they, even care?
We care. You care. The fight for that fairness in business is something everyone should be united in demanding.
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