President Donald Trump tweeted on Tuesday that thanks to tax reform, “Main Street is BOOMING,” noting that small-business confidence has reached new heights.
President Trump wrote, “Main Street is BOOMING thanks to our incredible TAX CUT and Reform law. ‘This shows small-business owners are more than just optimistic, they are ready to grow their businesses'”:
Main Street is BOOMING thanks to our incredible TAX CUT and Reform law. "This shows small-business owners are more than just optimistic, they are ready to grow their businesses." https://t.co/w9aw68UwOj
— Donald J. Trump (@realDonaldTrump) February 20, 2018
Small-business confidence rose to 62 percent from 57 percent, which marks the largest jump since CNBC started measuring small-business confidence last year. This poll marks the first time CNBC was able to measure small-business confidence after President Trump signed the Tax Cuts and Jobs Act into law in December.
Forty-six percent of those surveyed believe that tax reform will positively impact their business, while only 23 percent of small businesses contend that the Tax Cuts and Jobs Act will negatively impact their business.
Roughly half of small businesses believe they will see a tax cut in 2018.
Confidence rose among almost every demographic surveyed. The largest increases came from small businesses with five to nine employees as well as small-business owners aged 35-44 and 55-64.
Juanita Duggan, president of the National Federation of Independent Business, told CNBC, “These numbers are historically high. This shows small-business owners are more than just optimistic, they are ready to grow their business.”
Molly Day, vice president of the National Small Business Association, argued, “I think the jump in optimism isn’t just due to tax reform, but largely due to the economy doing better. Certainly, the tax-reform piece is helpful, but in reality I think small businesses are just now starting to digest what it means for their business.”
Thirty percent of small-business owners also suggested in the CNBC poll that they want Congress to address health care, with 20 percent of business owners arguing that the cost of employee health insurance is the most pressing issue facing their business.
“I think that because of the cost of health care, hiring among the smallest businesses won’t be changed significantly,” Day contended.