Accounting For Regulations Effect On Market Concentration
Any increase in market concentration caused by regulatory intervention brings about a variety of societal ills, including increased income inequality. Recent studies have shown that, although increased market concentration does not necessarily increase consumer prices since efficiency gains may offset the potential price increases caused by lost competition, it does exacerbate income inequality by transferring wealth from workers to shareholders. Since corporate managers are judged chiefly on their ability to increase the share price of the companys stock, they will be motivated to pass along the benefits of any efficiency gains to shareholders rather than employees.
Proposals To Improve Regulations In The Biden Era
President Bidens Modernizing Regulatory Review initiative offers an excellent opportunity to focus on this problem. One possible solution to reducing the regulatory burden for small businesses might involve reducing the overall number and cost of regulations. This is the route the Trump administration took with its requirement that agencies offset the costs of new regulations with equivalent regulatory savings and eliminate two rules for every new one adopted. That may or may not be a wise approach, but it appears to be a non-starter in the Biden administration. Alternative ways to address the problem dovetail perfectly with the types of initiatives the administration has already said it would like to pursue. Here are a few ideas.
At the very least, agencies should be mindful of the fact that large businesses are more capable of hiring expensive law firms and lobbying shops to request special regulatory exemptions. When an agency grants a waiver to a large firm, the agency should publicly announce its decision and strongly consider extending it to all firms so that smaller players are not at a competitive disadvantage. And in some cases, it may make sense to provide a special carve-out to small businesses when the effects of their activities are minimal or when they face an especially heavy burden.
Small Businesses Under Trump: Better Or Worse Off
It’s Small Business Week, and the nations smallest companies in the aggregate are by many accounts doing fairly well. Theyre not, however, thriving en masse in direct response to Trump administration and Republican policies.
Small business hiring is erratic, according to numbers released by payroll provider ADP. Small businesses typically struggle to add jobs when the unemployment rate is very low, as it is now, at 3.8%. They often cant pay as much as larger companies or offer the comparatively robust benefits that big companies do, thereby leaving them at a disadvantage when workers are scarce.
Meanwhile, surveys by Bank of America, Wells Fargo, Capital One and the U.S. Chamber of Commerce and MetLife show small business owners have been losing some of their optimism as doubts linger about the strength of the current economic expansion. The new tax law has had a mixed impact on small businesses and the trade war that began with Trump administration tariffs is hurting small manufacturers and retailers.
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Business is good, OK, but no different from how its been throughout the bulk of this expansion, says Mark Zandi, chief economist with Moodys Analytics. Its hard to argue that the presidents policies have led to some kind of renaissance for small businesses thats going to mean great things forever.
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How Trump Regulatory Rollback Boosts Small Businesses
- JOSEPH SEMPREVIVO
- 06:20 PM ET 04/03/2018
President Trump’s Agriculture Department recently withdrew a regulation targeting organic farms, incentivizing more farmers and ranchers to stay in the organic farming business. As American Farm Bureau spokesman Dale Moore explained: ” would have forced many of them either out of the organic sector, if not out of business.”
It’s only the latest in a long line of pro-growth regulatory rollbacks. Since Inauguration Day, President Trump has slashed well over 1,500 planned regulatory actions. The Trump administration has repealed 22 regulations for each new rule issued, cutting regulatory costs by more than $8 billion. In fact, federal regulations are now at their “lowest count since records began being kept in the mid-1970s.”
Small business owners are counting their blessings. For years, America’s most dedicated job creators who account for two-thirds of all new U.S. jobs have been drowning in red tape. According to a National Small Business Association survey, one-third of small business owners spend more than 80 hours a year meeting regulatory requirements. In their first year of operation, small business employers pay an average of $83,000 in regulatory costs just to remain compliant.
Majority Of Business Owners Support Trump Over Biden: Ubs
The presidential election is the top concern of business owners and most of them want President Trump to win another term in the White House, according to a new survey from UBS.
More than half 53% of business owners surveyed said they support Trump, while 47% said they support former Vice President Joe Biden.
The survey showed Washington is top of mind for business owners 64% said the presidential election was their biggest concern, followed by politics, the national debt, COVID-19 and health care costs. The biggest election issue for business owners is the economy, followed by COVID-19 management, job growth, health care and taxes.
Of those concerns, health care is the only issue on which business owners prefer Biden over Trump. Business owners prefer Trump on the economy, job growth and taxes. The group was split 50-50 over who would best manage the pandemic.
Looking beyond the Nov. 3 election, business owners are most concerned about civil unrest. More taxes, mishandling of the coronavirus pandemic, more regulation and trade uncertainty round out business owners top five concerns after the election.
UBS surveyed 448 business owners with at least $1 million in annual revenue and at least one other employee, from Aug. 26-31.
The NFIB Uncertainty Index ticked up two points last month to 90, the second-highest reading since 2017.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at .
Read more:
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How To Account For Small Business Interests In President Bidens Modernizing Regulatory Review Initiative
On his first day in office, President Biden issued a memorandum titled Modernizing Regulatory Review, which made it clear that his administration would be charting a new course in regulatory policymaking. Gone was the Trump administrations focus on the overall numbers or costs of rules. In its place, President Biden hinted that his administration would encourage agencies to adopt new rules in areas in which the existing ones may be insufficient, even as he sought to roll back rules relating to immigration, architectural requirements, and other matters. And he urged agencies to focus closely on how regulatory policy might hurt certain vulnerable groups and to ensure those groups have a say in how agency rules are made.
Investigations For Fraud And Tax Evasion
In August 2018, the Manhattan district attorney was reported to be considering criminal charges against the organization and two of its senior executives for their accounting of then-Trump personal attorney Michael Cohen‘s hush money payment to Stormy Daniels.
In October 2018, The New York Times published a lengthy exposé concerning Donald Trump’s inheritance from his parents, Fred and . It includes detailed analyses of Trump family financial records. The article describes an alleged tax fraud scheme conducted by Trump and his siblings related to their joint inheritance of their parents’s real estate holdings, effectively evading over $500 million in gift and estate taxes. The alleged schemes involved siphoning money from the companies to the children throughout their lives and understating the value of transferred properties. In mid-2021, elaborated on how the organization used a shell corporation to siphon money, devaluing Fred Trump’s “core business” to $30 million at the time of his death.
| People v. Trump Corporation | |
|---|---|
| Supreme Court of the State of New York County of New York | |
| Full case name | The People of the State of New York v. The Trump Organization, d/b/a The Trump Organization, Trump Payroll Corp., d/b/a The Trump Organization, Allen Weisselberg |
| Defendant | Trump Organization, Trump Payroll Organization, and Allen Weisselberg |
Criminal charges and further developments
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Ways Trump Can Help Small
Optimism among small-business owners has soared as entrepreneurs hope that President-elect Donald Trump will enact policies aimed at helping them.
Trump has promised to ease regulation. While some on Main Street cheer the goal, changing anything substantial about regulation is easier said than done.
But there are other ways that a Trump administration can make life easier for small businesses. Consider this five-step plan his first 100 days agenda for Main Street.
Encourage large companies and the federal government to hire small businesses
“Trump should create tax requirements to source more from U.S. based small supply chain companies, and use incentives to get companies to pay these suppliers more quickly and invest in them with technology and skills training,” says Karen Mills, a senior fellow at the Harvard Business School and former head of the Small Business Administration. She served under President Obama from 2009 to 2013.
“Instead of squeezing their supply chain constantly, large companies, in exchange for enormous tax benefits, should treat their small business suppliers like partners, creating more value and more jobs at home.”
Also, Trump should maintain and potentially expand the Small Business Innovation Research program, a competitive awards-based program that aims to encourage small-business owners to pursue technical innovations, says, the Bernard L. Schwartz Chair in Economic Policy Development and a senior fellow in Economic Studies at Brookings.
How The Trump Tax Plan Benefits Small Businesses
The impact the Tax Cuts and Jobs Act has on your business depends on how your business is structured. Some entities will be eligible for new deductions and credits, while others will not. Also keep in mind that while some of these changes have been instituted in perpetuity, while others expire as early as 2019, and others last through 2025.
Heres how the Trump tax plan may benefit your business.
So letâs first re-establish the different categories of businesses entities at the center of Trumpâs tax plan:
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Repealed Corporate Alternative Minimum Tax
The Alternative Minimum Tax is a tax tool designed to make sure that large corporations donât take too many deductions and avoid paying taxes. The Donald Trump tax plan repealed the corporate AMT, which helps guarantee that businesses can reap the benefits of the new tax cuts.
Essentially, the AMT is a separate way of calculating your tax liability. Every business is required to calculate its tax burden in two ways: the normal way for corporate income taxes and with the AMT. Most tax software will automatically make both of these calculations for you. Once those two calculations are made, the business must pay whichever is the higher of the two tax burdens.
Figuring out the AMT is pretty complex, but the only thing you really need to know is that you donât have to figure it out anymore at all. There is no longer an AMT to calculate for small businesses. So, if you feel like youâre finding deductions and exemptions that make your businessâs tax burden easier, ride the waveâthereâs no alternative calculation to hold you back!
What Is The Tax Cuts And Jobs Act
The Tax Cuts and Jobs Act was legislation passed in December 2017 that gave the U.S. tax code its largest overhaul in over 30 years. Among other things, the legislation nearly doubled the standard deduction, placed new limitations on itemized deductions, reduced the income tax rate, and made reforms to several other key provisions.
Overall, the Tax Cuts and Jobs Act aimed to simplify the tax system. One of the biggest effects of the legislation was to cut the amount of income tax large American companies have to pay. But how did it affect small business? Lets take a closer look.
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Business Career Of Donald Trump
| This article is part of a series about |
Donald Trump is an American businessman and television personality. He was the 45th president of the United States. He began his real estate career at his father’s company, Elizabeth Trump and Son, which he later renamed the Trump Organization. He rose to public prominence after concluding a number of highly publicized real estate deals in Manhattan, and his company now owns and licenses his name to lodging and golf courses around the world. Trump partly or completely owned several beauty pageants between 1996 and 2015. He has marketed his name to many building projects and commercial products. Trump’s unsuccessful business ventures have included numerous casinos and hotel bankruptcies, the folding of his New Jersey Generals football team, and the now-defunct Trump University.
After being inaugurated as U.S. president in January 2017, Trump resigned all management roles within the Trump Organization, and delegated company management to his sons Donald Jr. and Eric. However, Trump retained his financial stake in the work document, leaving ongoing concerns about possible conflicts of interest.
Us Election : ‘trump’s Done What He Said He Would For Business’
Like many Americans, Amy Fazackerley is worried about the economy. The 49-year-old runs a small business near Washington, DC in Virginia, which sells mats that roll up into bags – a product she invented in response to her sons’ Lego mess and she sees mom-and-pop firms like hers closing every day.
“It breaks my heart,” she says. “The government has to step up.”
But Ms Fazackerley’s worries aren’t changing her vote. The Republican backed Mr Trump in 2016 and will be voting for him again, thanks to his record promoting small business and confronting China over intellectual property theft – a key issue for her business, which faces a constant battle against knock-off products.
“He’s actually done what he said he was going to do,” she says.
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Championing Women In Business: A Conversation With Small Business Administration Assistant Administrator Natalie Cofield
The effects of the Coronavirus outbreak on small businesses is very real. I see it already. Small businesses are coming to Biz2Credit in search of working capital to cover staff costs because customers are staying home rather than eating in restaurants and attending entertainment events. Related industries that people might not think about printers who produce marketing materials to promote events, mailing houses, ad sales reps are all suffering a downturn.
According to CBS Sports, NCAA president Mark Emmert has announced that Division I men’s and women’s basketball tournament games will be played in arenas without fans, and the NBA has suspended season after a Utah Jazz player tested positive for the virus. New York cancelled its St. Patricks Day Parade, which dates back to 1762, for the first time in history. The event brings up to two million visitors into the city and millions more in revenue for bars, restaurants, and hotels each year.
The service sector plays an important role in the economy, and the travel, tourism, entertainment, and restaurant industries are all being hit very hard by the impact of Coronavirus.
Manufacturing firms have also been handcuffed by the delays in inventory and raw materials made in China. Without finished products or the materials to make goods, small businesses are unable to generate revenues.
