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While there’s enough to say about the current U.S. administration, a new survey reveals that as a group, America’s small business owners are optimistic about the short-term future of their businesses.

Small business owners are optimistic

According to survey results recently released by CNBC and SurveyMonkey, out of about 2000 small business owners participating in the survey, “42 percent believe changes in tax policy will have a positive effect on their business, and 33 percent think it will have no effect. Just 24 percent believe it will have a negative effect.”

Right now, taxes are by far the biggest cause of concern for small business owners in the United States. The president has proposed significant changes to the tax code that could bring relief to many of them who are currently paying staggering amounts under current tax laws.

The same CNBC report tells the story of David Waring, co-founder of a publishing company based in New York City that brings in over $3.5 million in revenue annually. He collects a low 6-figure income and his wife also works full time as a CPA. Waring explains why he and his wife can barely afford their 800 square-foot apartment, despite theoretically living the American Dream:

“On every dollar, my wife and I earn over $86,000, we pay 52 cents in federal, state and city taxes,” Waring says. “This also doesn’t count the sales taxes that I pay every time I buy something or the property tax that I will pay if I can ever earn enough to buy a house.”

Anthony Parent, a New York City accountant, describes the situation this way: “(Small business owners) live incredibly modest lives. The tax code, as it is now, strangles them year after year.”

Trump’s proposed changes to the tax code

There are at least four potential benefits business owners can gain by selling their business under Trump’s proposed tax code changes.

Lower business taxes

Chief among Trump’s tax proposals is a significant slash in corporate taxes, from as high as 35 percent to 15 percent in most cases. He proposes the same for freelancers, sole proprietorships, and other entities that currently are taxed at a much higher personal income tax rate. While many companies may also experience a loss in certain tax breaks, the net result should be a marked increase in business profit across the board.

If you’re considering selling your business, increased profit means greater valuation, and therefore a higher selling price.

Lower personal taxes

Trump’s proposed tax code changes also include a simplification in the personal income tax from six to just three tax brackets and a lowering of the maximum bracket from 39.6 percent to 33 percent.

Since selling your business is likely to bump you up at least one tax bracket during the year of the sale, this change can very well keep more of the profit from the sale in your pocket rather than Uncle Sam’s.

Capital Gains taxes

Although Trump isn’t proposing any major changes to the capital gains tax, the adjustments to both personal and business tax rates and brackets can alter which bracket you end up in when figuring capital gains. This change has sparked the interest of Baby Boomers who are in a position to sell long-standing companies, perhaps for millions.

Again, if you’re selling your business, this could mean a difference of thousands of dollars if it falls in your favor.

Imports and exports

This one is more of a fair warning as opposed to a potential benefit.

If your business relies heavily on the current trade agreements between the U.S. and foreign countries, there’s a good chance Trump’s proposed crackdown on trade agreements he considers “unfair” or lopsided will lead to higher operating costs and lower profits if they go through as proposed. For example, if your business relies on sourcing inexpensive products from China and selling them domestically for a profit, you may find that margin drying up under Trump’s plans.

This may be an excellent time to consider selling your business, or restructuring to accommodate a healthier mix of domestic sourcing or other means of lessening the impact of these changes.

Next steps

Obviously, these are broad talking points, and there’s a lot more detail to be considered in each one when applied to each unique business or sector.

If you’re wondering how Trump’s proposals may impact your personal business, and whether or not you should sell your business (or want to determine the best time and method to do so) speak with a local business broker to discuss the specifics.

If there’s one thing President Trump has already proven, it’s that he’s not afraid to pull the trigger the moment he decides it’s time. Changes will come fast and furious during his presidency, so entrepreneurs need to stay vigilant and be ready to take action just as quickly.