With the ups and downs of small business optimism index this year, October saw a small upward trend again and once again small business owners believe now is the time to expand, and hire. They believe sales will keep increasing and the economy as a whole.
The retail industry sees an increase in sales due to the holiday season, and as a small shop owner, sales do increase dramatically. The question now is whether the sales will keep up after the holidays are over and Americans settle to their business as usual, or whether they will again go back to the normal pre-holiday sales. The index may again adjust itself to reflect the normal optimism before this holiday rush.
For more about this and other topics, follow the links below.
8 small business losers under Republicans’ tax bill
If you’re a small business owner hoping to get a tax cut under the proposed Republican tax reform, pay close attention. While there will be a few small business winners, most owners will see no benefit, and you might be one of the many losers.
While both the House and Senate bills are still subject to revision, both contain a provision directly aimed at small businesses. And it’s got a whopper of a bait-and-switch.
Whenever you hear them talking about lowering the rate on “pass through” income — the kind almost all small business owners report — remember this: It won’t lower taxes on at least 70% of the money you make. It won’t help the overwhelming bulk of small businesses.
How did we get here?
During the Presidential campaign, candidate Donald Trump promised to lower business taxes. But he meant “corporate” taxes — with a new lower rate applicable only to “C” corporations, generally the largest businesses.
NFIB Small Business Survey: Index Inches Up In October
The latest issue of the NFIB Small Business Economic Trends came out this morning. The headline number for October came in at 103.8, up 0.8 from the previous month. The index is at the 93rd percentile in this series. Today’s number came in below the Investing.com forecast of 104.2.
Here is an excerpt from the opening summary of the news release:
More small business owners last month said they expect higher sales and think that now is a good time to expand, according to the October NFIB Index of Small Business Optimism, released today.
“Owners became much more positive about the economic environment last month, which suggests a longer-run view,” said NFIB Chief Economist Bill Dunkelberg. “In the nearer term, they are more optimistic about real sales growth and improved business conditions through the end of the year.”
The first chart below highlights the 1986 baseline level of 100 and includes some labels to help us visualize that dramatic change in small business sentiment that accompanied the Great Financial Crisis. Compare, for example, the relative resilience of the index during the 2000-2003 collapse of the Tech Bubble with the far weaker readings following the Great Recession that ended in June 2009.
Modified House tax bill hits right notes for small businesses
The House is expected this week to pass the most comprehensive tax reform in more than 30 years. The measure is aimed at boosting the U.S. economy, mainly by reducing taxes on businesses. The Senate introduced its plan last week, which leaders expect to pass before the end of the year.
The respective versions will have to be reconciled, and potential obstacles remain, but the elusive goal of tax reform is within reach. Every American has a stake in the success of this effort, for no other public goal is possible, including national security, better public education or a modernized infrastructure, without stronger, faster economic growth.
