Small businesses barely survived Biden. They can't wait for tariffs to fix things
Main Street has been excited for the Donald Trump presidency. Optimism picked up on the back of Trump's resounding election victory. They found an ally in the Secretary of the Treasury, Scott Bessent, who recently echoed his previous small business support, saying, "Wall Street's done great, Wall Street can continue doing well. But this administration is about Main Street."
Small businesses and others even scored a major win when Bessent's Treasury Department suspended enforcement of the Corporate Transparency Act's Beneficial Ownership Information reporting for U.S. citizens and entities, which had mostly been targeted at small businesses.
But recent policy shifts, including substantial tariffs that have directly impacted small businesses and the markets, are standing in massive opposition to a Main Street win.
While Trump and his advisors may be trying to play a long game here, small businesses, which have been brutalized by policy for the last five years, cannot withstand this chaos and blunt-force policy.
Five years ago, a policy assault on small businesses began. Many small businesses were closed in whole or in part, or otherwise impacted by state and local COVID-19 policies, while large businesses were left open and supported in the stock market by the Fed. The PPP program purportedly meant to help affected small businesses was poorly structured, meaning a whole lot of people received funding who should not have, and many of those small businesses that rightfully should have been paid via PPP did not receive enough.
Downstream effects, including labor force issues and supply chain disruptions on the back of COVID-19 policies beat down small business even more.
Then came the Biden administration, bringing historic inflation and an estimated $1.7 trillion in new regulatory costs to small businesses.
The effects from all of the above hurt small businesses disproportionally, because they do not have the scale to be able to absorb the costs and issues the way that larger businesses can. And everyone should care, because small businesses are close to half of the overall economy and more than 99% of all business entities.
If you want to grow the GDP and see the economy thrive, it must be done in concert with the success of small businesses.
Which is why Main Street was hoping that they would get some certainty on tax policy, such as extending the Tax Cuts and Jobs Act, and price stability instead of policy chaos.
Tariffs are directly impacting small businesses that did not have time to implement alternate plans and, in many cases, don't have alternatives available. I personally know and have heard stories of small businesses that have incurred major financial penalties that they cannot pass along to consumers – and if they did – it would still hurt Main Street.
These are not major car manufacturers or steel producers or defense contractors – these are small and family-owned companies.
If tariffs must remain in place, they should be surgical and targeted. If not, then small businesses should be exempt and not have to bear tens or hundreds of thousands of dollars in costs. The economy will suffer otherwise, and small businesses do not deserve to be subject to what equates to more taxes and fees for them.
Additionally, the secondary effects of the market are also a problem. Not only does Main Street have money invested through 401(k)s and other brokerage accounts that are directly hurt, but when those go down significantly, they spend less. When your customers are feeling less wealthy, that also ends up impacting small businesses.
And while Trump and his advisers may have helped get the dollar index and yield on the 10-year treasury down, no doubt a part of their strategy to deal with the mess President Joe Biden left them, a massive decrease in markets can also mean less collected in tax "revenue," which could end up making the deficit worse and causing a bona fide debt crisis.
These are not major car manufacturers or steel producers or defense contractors – these are small and family-owned companies.
The administration may be playing a long game, but right now small businesses cannot last that long.
The government should focus on certainty, growth, stability, deregulation and prosperity first, as they address government spending, waste and fraud and then look at addressing other issues.
That's what Main Street voted for and that's what they deserve.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
44 minutes ago
- Hamilton Spectator
Israeli navy attacks rebel-held Yemeni port city of Hodeida, a first in the conflict
DUBAI, United Arab Emirates (AP) — The Israeli navy attacked docks in Yemen's rebel-held port city of Hodeida on Tuesday, likely damaging facilities that are key to aid shipments to the hungry, war-wracked nation. The Israeli military said navy missile ships conducted the strikes, the first time its forces have been involved in attacks against the Houthi rebels. Tuesday's attack comes as the Houthis have repeatedly launched missiles and drones targeting Israel during its war on Hamas in the Gaza Strip . The Houthis announced the attack via their al-Masirah satellite news channel. They said the attack targeted docks there, without elaborating. Late Monday, Israel issued online warnings to Yemenis to evacuate from Ras Isa, Hodeida and al-Salif ports over the Houthis' alleged use of seaports for attacks. 'The port is used to transfer weapons and is a further example of the Houthi terrorist regime's cynical exploitation of civilian infrastructure in order to advance terrorist activities,' the Israeli military said in a statement Tuesday. Hodeida also is the main entry point for food and other humanitarian aid for millions of Yemenis since the war began when the Houthis seized Yemen's capital, Sanaa, in 2014. The Houthis have been launching persistent missile and drone attacks against commercial and military ships in the region in what the group's leadership has described as an effort to end Israel's offensive in Gaza. From November 2023 until January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors . That has greatly reduced the flow of trade through the Red Sea corridor, which typically sees $1 trillion of goods move through it annually. The Houthis paused attacks in a self-imposed ceasefire until the U.S. launched a broad assault against the rebels in mid-March. President Donald Trump paused those attacks just before his trip to the Mideast, saying the rebels had 'capitulated' to American demands. Early Tuesday, U.S. Secretary of Defense Pete Hegseth wrote on the social platform X that U.S. Navy ships had traveled through the Red Sea and its Bab el-Mandeb Strait 'multiple times in recent days' without facing Houthi attacks. 'These transits occurred without challenge and demonstrate the success of both Operation ROUGH RIDER and the President's Peace Through Strength agenda,' Hegseth wrote ahead of facing Congress for the first time since sharing sensitive military details of America's military campaign against the Houthis in a Signal chat. It's unclear how the Houthis will respond now that an attack has come from the sea, rather than the air, from the Israelis. Meanwhile, a wider, decadelong war in Yemen between the Houthis and the country's exiled government, backed by a Saudi-led coalition, remains in a stalemate. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Hamilton Spectator
an hour ago
- Hamilton Spectator
Trump authorizes additional 2,000 National Guard members to Los Angeles, US officials say
LOS ANGELES (AP) — Another 2,000 National Guard troops along with 700 Marines are headed to Los Angeles on orders Monday from President Donald Trump, escalating a military presence local officials and Gov. Gavin Newsom don't want and the police chief says creates logistical challenges for safely handling protests. An initial 2,000 Guard troops ordered by Trump started arriving Sunday , which saw the most violence during three days of protests driven by anger over Trump's stepped-up enforcement of immigration laws that critics say are breaking apart migrant families. Monday's demonstrations were far less raucous, with thousands peacefully attending a rally at City Hall and hundreds protesting outside a federal complex that includes a detention center where some immigrants are being held following workplace raids across the city. Trump has described Los Angeles in dire terms that Mayor Karen Bass and Newsom say are nowhere close to the truth. They say he is putting public safety at risk by adding military personnel even though police say they don't need the help. Los Angeles Police Chief Jim McDonnell said in a statement he was confident in the police department's ability to handle large-scale demonstrations and that the Marines' arrival without coordinating with the police department would present a 'significant logistical and operational challenge' for them. Newsom called the deployments reckless and 'disrespectful to our troops' in a post on the social platform X. 'This isn't about public safety,' Newsom said. 'It's about stroking a dangerous President's ego.' The protests began Friday in downtown Los Angeles after federal immigration authorities arrested more than 40 people across the city. The smell of smoke hung in the air downtown Monday, one day after crowds blocked a major freeway and set self-driving cars on fire as police responded with tear gas, rubber bullets and flash-bang grenades. Additional protests against immigration raids continued into the evening on Monday in several other cities including San Francisco and Santa Ana in California and Dallas and Austin in Texas. In Austin, Texas Gov. Greg Abbott said in a post on X that more than a dozen protesters were arrested, while in Santa Ana, a spokesperson for the city's police department said the National Guard had arrived in the city to secure federal buildings. California pushes back against presence of federal troops California Attorney General Rob Bonta filed a lawsuit over the use of National Guard troops following the first deployment, telling reporters in his announcement Monday that Trump had 'trampled' the state's sovereignty. 'We don't take lightly to the president abusing his authority and unlawfully mobilizing California National Guard troops,' Bonta said. He sought a court order declaring Trump's use of the Guard unlawful and asking for a restraining order to halt the deployment. Trump said Monday that the city would have been 'completely obliterated' if he had not deployed the Guard. U.S. officials said the Marine troops were deployed to protect federal property and personnel, including federal immigration agents. Trump's Monday order put more National Guard members on active duty, but one U.S. official warned that the order was just signed and it could take a day or two to get troops moving. The official spoke on condition of anonymity to discuss troop movements. Despite their presence, there has been limited engagement so far between the Guard and protesters while local law enforcement implements crowd control. Bass criticized the deployment of National Guard troops and Marines as a 'deliberate attempt' by the Trump administration to 'create disorder and chaos in our city.' She made a plea to the federal government: 'Stop the raids.' Early protests remained peaceful On Monday, thousands flooded the streets around City Hall for a union rally ahead of a hearing for arrested labor leader David Huerta , who was freed a few hours later on a $50,000 bond. Huerta's arrest on Friday while protesting immigration raids has become a rallying cry for people angry over the administration's crackdown. He is the president of the Service Employees International Union California, which represents thousands of the state's janitors, security officers and other workers. Early protests had a calm and even joyful atmosphere at times, with people dancing to live music and buoyed by Huerta's release. Protesters linked hands in front of a line of police officers outside the downtown federal detention center where Huerta was being held. Religious leaders joined the protesters, working with organizers at times to de-escalate moments of tension. There was a heavy law enforcement presence in the few square blocks including the federal detention facility, while most in the immense city of some 4 million people went about their normal business on peaceful streets. Chanting against a line of National Guard troops with Homeland Security officers behind them surrounding the federal buildings ramped up in the afternoon as people yelled, 'Free them all!' and 'National Guard go away.' As the crowd thinned, police began pushing protesters away from the area, firing crowd-control munitions as people chanted, 'Peaceful protest.' Officers became more aggressive in their tactics in the evening, occasionally surging forward to arrest protesters that got too close. At least a dozen people remaining in the busy Little Tokyo neighborhood were surrounded by police and detained. Other protests took shape Monday across LA County. Outside a Los Angeles clothing warehouse, relatives of detained workers demanded at a news conference in the morning that their loved ones be released. The family of Jacob Vasquez, 35, who was detained Friday at the warehouse, where he worked, said they had yet to receive any information about him. 'Jacob is a family man and the sole breadwinner of his household,' Vasquez's brother, Gabriel, told the crowd. He asked that his last name not be used, fearing being targeted by authorities. Several dozen people were arrested in protests throughout the weekend. Authorities say one was detained Sunday for throwing a Molotov cocktail at police and another for ramming a motorcycle into a line of officers. Guard deployment is a nearly unprecedented escalation The deployment appeared to be the first time in decades that a state's National Guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. In a directive Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States.' ___ Sullivan reported from Minneapolis. Associated Press writers Dorany Pineda in Los Angeles, Amy Taxin in Orange County, California, Lolita C. Baldor in Washington, Hallie Golden in Seattle and Jake Offenhartz in New York contributed to this report. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
San Francisco Chronicle
an hour ago
- San Francisco Chronicle
Trump authorizes additional 2,000 National Guard members to Los Angeles, US officials say
LOS ANGELES (AP) — Another 2,000 National Guard troops along with 700 Marines are headed to Los Angeles on orders Monday from President Donald Trump, escalating a military presence local officials and Gov. Gavin Newsom don't want and the police chief says creates logistical challenges for safely handling protests. An initial 2,000 Guard troops ordered by Trump started arriving Sunday, which saw the most violence during three days of protests driven by anger over Trump's stepped-up enforcement of immigration laws that critics say are breaking apart migrant families. Monday's demonstrations were far less raucous, with thousands peacefully attending a rally at City Hall and hundreds protesting outside a federal complex that includes a detention center where some immigrants are being held following workplace raids across the city. Trump has described Los Angeles in dire terms that Mayor Karen Bass and Newsom say are nowhere close to the truth. They say he is putting public safety at risk by adding military personnel even though police say they don't need the help. Los Angeles Police Chief Jim McDonnell said in a statement he was confident in the police department's ability to handle large-scale demonstrations and that the Marines' arrival without coordinating with the police department would present a 'significant logistical and operational challenge' for them. Newsom called the deployments reckless and 'disrespectful to our troops' in a post on the social platform X. 'This isn't about public safety,' Newsom said. 'It's about stroking a dangerous President's ego.' The protests began Friday in downtown Los Angeles after federal immigration authorities arrested more than 40 people across the city. The smell of smoke hung in the air downtown Monday, one day after crowds blocked a major freeway and set self-driving cars on fire as police responded with tear gas, rubber bullets and flash-bang grenades. Additional protests against immigration raids continued into the evening on Monday in several other cities including San Francisco and Santa Ana in California and Dallas and Austin in Texas. In Austin, Texas Gov. Greg Abbott said in a post on X that more than a dozen protesters were arrested, while in Santa Ana, a spokesperson for the city's police department said the National Guard had arrived in the city to secure federal buildings. California pushes back against presence of federal troops California Attorney General Rob Bonta filed a lawsuit over the use of National Guard troops following the first deployment, telling reporters in his announcement Monday that Trump had 'trampled' the state's sovereignty. 'We don't take lightly to the president abusing his authority and unlawfully mobilizing California National Guard troops,' Bonta said. He sought a court order declaring Trump's use of the Guard unlawful and asking for a restraining order to halt the deployment. Trump said Monday that the city would have been 'completely obliterated' if he had not deployed the Guard. U.S. officials said the Marine troops were deployed to protect federal property and personnel, including federal immigration agents. Trump's Monday order put more National Guard members on active duty, but one U.S. official warned that the order was just signed and it could take a day or two to get troops moving. The official spoke on condition of anonymity to discuss troop movements. Despite their presence, there has been limited engagement so far between the Guard and protesters while local law enforcement implements crowd control. Bass criticized the deployment of National Guard troops and Marines as a 'deliberate attempt' by the Trump administration to 'create disorder and chaos in our city.' She made a plea to the federal government: 'Stop the raids.' Early protests remained peaceful On Monday, thousands flooded the streets around City Hall for a union rally ahead of a hearing for arrested labor leader David Huerta, who was freed a few hours later on a $50,000 bond. Huerta's arrest on Friday while protesting immigration raids has become a rallying cry for people angry over the administration's crackdown. He is the president of the Service Employees International Union California, which represents thousands of the state's janitors, security officers and other workers. Early protests had a calm and even joyful atmosphere at times, with people dancing to live music and buoyed by Huerta's release. Protesters linked hands in front of a line of police officers outside the downtown federal detention center where Huerta was being held. Religious leaders joined the protesters, working with organizers at times to de-escalate moments of tension. There was a heavy law enforcement presence in the few square blocks including the federal detention facility, while most in the immense city of some 4 million people went about their normal business on peaceful streets. Chanting against a line of National Guard troops with Homeland Security officers behind them surrounding the federal buildings ramped up in the afternoon as people yelled, 'Free them all!' and 'National Guard go away.' As the crowd thinned, police began pushing protesters away from the area, firing crowd-control munitions as people chanted, "Peaceful protest.' Officers became more aggressive in their tactics in the evening, occasionally surging forward to arrest protesters that got too close. At least a dozen people remaining in the busy Little Tokyo neighborhood were surrounded by police and detained. Other protests took shape Monday across LA County. Outside a Los Angeles clothing warehouse, relatives of detained workers demanded at a news conference in the morning that their loved ones be released. The family of Jacob Vasquez, 35, who was detained Friday at the warehouse, where he worked, said they had yet to receive any information about him. 'Jacob is a family man and the sole breadwinner of his household,' Vasquez's brother, Gabriel, told the crowd. He asked that his last name not be used, fearing being targeted by authorities. Several dozen people were arrested in protests throughout the weekend. Authorities say one was detained Sunday for throwing a Molotov cocktail at police and another for ramming a motorcycle into a line of officers. Guard deployment is a nearly unprecedented escalation The deployment appeared to be the first time in decades that a state's National Guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. In a directive Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States.' ___ Sullivan reported from Minneapolis. Associated Press writers Dorany Pineda in Los Angeles, Amy Taxin in Orange County, California, Lolita C. Baldor in Washington, Hallie Golden in Seattle and Jake Offenhartz in New York contributed to this report.
