3 Ways Trump Could Actually Reduce Regulation Burdens on Small Businesses

On January 30, President Donald Trump signed a significant executive order designed to fulfill one of his biggest campaign promises: to reduce the regulatory burden on small businesses.

The main idea of the order is that federal agencies must cut at least two previous regulations on small businesses for any new regulation they intend to make. Hence, small business owners can expect to see a significant reduction in regulatory requirements as two old regulations make way for each new one.

Trump says his move to cut down regulation on small businesses is important in order to "end the unfairness between small and big business caused by regulation." He also noted that the executive order initiates "the largest ever cut by far in terms of regulation." But this move to reduce regulation on small businesses, while significant on paper, won't necessarily make much of a difference for small businesses in reality.

Here are three things Trump could do to reduce regulation burden on small businesses.

Support the Startup in a Day Program

The White House, in a partnership with the Small Business Administration and National League of Cities, launched the "Startup in a Day" program in 2015 to help counties, cities, and states fast track their licensing and permit process. The aim of the "Startup a Day" program was to make it possible for potential business owners to apply for all required permits and licenses within 24 hours.

The SBA went out of its way to provide web portals for council, city, and state agencies in charge of giving out licenses and permits to small businesses. Continued support of the "Startup in a Day" program, would make it easier for small businesses to cut through the stifling bureaucracy that makes it hard to set up businesses

Develop a standard tax deduction for sole proprietors

If Trump wants to make life easier for small business owners, he should consider creating a standard tax deduction framework for sole proprietors. Small business owners often find it difficult to prepare their income taxes because it is quite easy to mix up personal finances with business finances. Most of the small businesses being created are sole proprietorships, so a standard tax deduction that calls for a definite percent of total income could reduce the attendant stress of filing income taxes on sole proprietors.

Provide more support for small businesses

A more enabling environment for small businesses for undoubtedly help them thrive. For instance, support for Small Business Development Centers (SBDCs) would help entrepreneurs get low-cost training and personalized assistance. Trump could also push to give the SBA more funding in order to make business loans for entrepreneurs readily accessible. The SBA and SBDCs also make it easier for small business owners to navigate the maze of regulations so that they can grow their companies and the economy without flouting any rule.

Because the regulatory rulebook is filled with hundreds of regulations that are no longer enforced, applicable, or practical, federal agencies can easily find old regulations to repeal while creating new regulations. Most of the regulations that directly affect the operations of small businesses are enacted at the local and state levels. Repealing old federal regulations to make way for new regulations might not have much difference on the ease of doing business for small business.

The author of this article is an editorial partner of Benzinga. We collaborate on stories that are educational, or that we think you fill find interesting.