Businesses Optimistic About Potential Policy Changes: The RSM Middle Market Business Index found middle market business owners are “cautiously optimistic” about a number of policy changes that are likely possible over the next two years.
Sixty-six percent of business owners believe a reduction of federal regulations would have a “positive impact” (27% saying strong impact and 39% saying moderate impact) on most businesses and organizations. Sixty-three percent say tax reform would have a “positive impact” (25% strong; 38% moderate) and 58% think reducing labor costs would have a positive impact (18% strong; 40% moderate). Fifty-two percent say infrastructure spending on communications and/or energy grids would have a positive impact (16% strong; 36% moderate), while 51% say infrastructure spending on roads, bridges, water, and sewage would have a positive impact (21% strong; 30% moderate).
Pres. Donald Trump has already moved on some of these initiatives, rolling back a number of Obama-era regulations, for example. He also says he wants to tax reform and infrastructure spending approved soon. A majority of business owners believe doing so will positively affect the economy and American workers. Delivering on these promised policy changes would be political wins for the Trump Administration as well, something it sorely needs after last week’s set-back on health care.