Main Street Has a Lot to Be Thankful for This Small Business Saturday

Thanksgiving is right around the corner and with it comes the frenzy of holiday shopping. Consumers will be bombarded by Black Friday and Cyber Monday deals. And tucked in between is Small Business Saturday—a day where Americans are encouraged to shop at local, independent businesses rather than Big Box stores. Last year, the holiday contributed an estimated $17 billion to Main Street balance sheets.

Going into this holiday season, however, small businesses can be grateful for more than just a seasonal revenue bump. After enduring four years of wrongheaded economic policy that fueled historic inflation, costly regulatory burdens, and the threat of higher taxes, the incoming Trump administration is poised to once again prioritize Main Street.

For one, President-elect Trump has vowed to restore his 2017 executive order, which directed the heads of government agencies to eliminate two regulations for every new one added. In fact, the incoming White House may take it a step further. In September, Trump floated the idea of eliminating ten regulations for every new one.

Small business owners ought to welcome the return to this policy as a reprieve from President Biden’s administrative state. The mountains of government red tape are estimated to have cost businesses over $1.6 trillion—a burden that has an outsized impact on Main Street. The average per-employee cost of regulatory compliance for small firms is double that of large firms in the same industry.

Instead of dealing with burdensome paperwork and regulations, entrepreneurs will be able to spend more time growing their businesses and with their families during future holiday seasons.

Additionally, the incoming administration has pledged to make permanent the Tax Cuts and Jobs Act—federal legislation that is set to expire at the close of 2025. The law was initially passed and signed into law during Trump’s first term, and it ushered in a wave of economic growth. As a result, the country’s unemployment rate hit a five-decade low, the pace of wage growth surpassed cost of living increases, and most people who wanted a job had one.

More specifically, the package lowered pass-through tax rates for small businesses, created a 20 percent Main Street tax deduction, and gave small businesses the opportunity to immediately expense capital investment. Together, these elements incentivized entrepreneurs to expand operations, boost employee earnings, and hire more workers.

I’ve had the opportunity to engage with small business owners across the country who have experienced the benefits firsthand. Thanks to the tax cuts, small business owners, such as Nicole Wolter, head of HM Manufacturing in Illinois, have been able to provide employees with 100 percent paid healthcare, bonuses, and raises. Other businesses, like Guy Chemical in Pennsylvania, have expanded facilities and invested in new equipment while creating additional jobs.

It’s clear that the Trump administration recognizes that small businesses are the backbone of the U.S. economy—employing 62 million workers and responsible for nearly half of the country’s labor force. By pursuing a strong deregulatory agenda and providing continued tax relief, the incoming Trump administration is not only putting America First but is prioritizing Main Street.

This Small Business Saturday, Americans can contribute to the upcoming small business boom.

Elaine Parker is the President of the Job Creators Network Foundation.