With the election of Donald Trump to the US Presidency analysts are trying to decipher how much of the rhetoric during the election will transfer into policy and programs.
What we know
Trump’s small business policy positions on the campaign trail focused on:
- Significantly reducing the corporate tax rate to 15%
- Reducing the regulatory burden on business. For every new regulation two need to be removed
The cut in company tax rate and how it’s applied to different legal entities will no doubt both stimulate the American economy, but also incentivize Americans to start businesses. Combined with Trump’s mantra to reduce regulation to make it easier on business, a reinvigoratation of the American private sector will no doubt occur.
However on top of this we need to consider broader economic policy changes including tariffs on Chinese manufacturing, removal of illegal immigrants and cuts to personal income taxes to stimulate demand all of which will all impact on small business. Some positively, some negatively.
What we don't know, but can surmise
But when it comes to US Federal government digital service delivery, and specifically government to business service delivery, nothing was mentioned during the Trump campaign.
Trump’s policy on “draining the swamp” aims at radically changing politics as usual in Washington. Part of that is the head count in the US Federal government. His official policy position is a rather level headed view of not replacing staff as they retire or voluntarily leave the government. Provided this is implemented in a measured way, digital government to American businesses can be a primary means of ensuring service continuity. So I expect the Trump administration to increase the focus on digital service delivery to business.
The Trump Organization like any modern successful business has embraced the online channel to support its bricks and mortar operations. Expect to see President-elect Trump focusing the US Federal government the same way with its G2B service delivery. While the Trump Organization and its operations haven’t been winning awards for their digital offerings, they’re not necessarily complacent. It’s not too dissimilar to the President-elect’s digital campaign: it met the need but didn’t go overboard. Expect to see that continue under his presidency, although understandably his pick for Administrator of the US Small Business Administration will no doubt impact on this.
One aspect of Trump’s campaign was his support for the underdog, getting American jobs on the front foot for his constituency. No doubt that means ramping up business, to ensure its propensity to employ. But to achieve that it means creating not just the environment for small businesses to start up, but also working out the right balance between tradition laissez-faire entrepreneurialism from the market and impartial advice and support for business intenders from government. We’ll all no doubt discover what that right balance will be from Donald Trump over the coming months.
It appears that all we know at present is that President-elect Trump will put the economy and job creation at the forefront of his agenda. But the means of achieving this will become more obvious to us shortly.