3 ways Trump can deliver an economic ‘golden age’ for America

As he prepares to take office, President-elect Donald Trump has outlined bold goals to return to pre-pandemic economic growth rates and “America's Golden Age.” After four years of being told that the economy is better than the hit to our wallets, this is a welcome change of direction.

To achieve this goal, the new administration will need the cooperation of the private sector, which was largely ignored during the Biden era and whose regulatory agenda was completely hostile to most industry concerns. Ta. The franchise sector that I represent includes 800,000 small businesses that support 9 million workers and stands ready to serve as a resource for the Trump Administration.

Franchise operations played a starring role in the 2024 election, much like Trump's endorsement of McDonald's fryers in Pennsylvania. Although franchises are often associated with food, most (more than 6 out of 10) are in other industries, ranging from hotels, salons, fitness, pet care, and more.

Experts warn of “definitive changes'' occurring in American companies

Despite several punitive attacks on franchising by the Biden administration, the franchise sector is expected to grow 4% this year, compared to 2.7% for the overall economy.

With the changing philosophy of the federal government, the opportunity is ripe to capitalize on the animal spirit of franchising. There are three things the Trump administration can do to accelerate economic growth.

1. Make the Trump joint employer standard into law

For the federal government, there is no higher priority for franchising than clarifying joint employer standards. The entire model hinges on independence between the franchisor (brand) and the individual franchisee. The former provides the concept, framework and branding to the latter, who are free to run their own business, whether in Parsippany or Parsippany, in exchange for agreed upon fees and following the brand standards expected by consumers. .

In 2023, the Biden administration's National Labor Relations Board sought to repeal the 2020 Trump joint employer standard and strip autonomy between franchisors and franchisees. As the name suggests, its purpose was to force franchisors into employees of franchisees in order to increase legal liability and facilitate union formation.

Thankfully, a Trump-appointed federal judge in Texas rejected Biden's overreach, but after the rule was changed four times in the past decade, the franchise now has a permanent joint employment policy that codified Trump's definition. We need a standard. Business owners cannot plan when the regulatory environment is constantly changing due to the occupant of the White House. They need certainty.

2. Reauthorize the Trump tax cuts

In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA), commonly known as the Trump Tax Cuts. Contrary to opponents' proposals for “tax cuts for the wealthy,” these policies were a lifeline for small business owners and helped lift the economy to new heights before the COVID-19 pandemic. But all of these are scheduled to expire at the end of 2025 if no action is taken.

One particularly important element of the Trump tax cut is Section 199A, which allows a 20% deduction of qualified income for pass-through businesses. Because most franchise businesses are structured as pass-through entities, 199A levels the playing field between small businesses and large businesses that already enjoy many tax breaks.

Reauthorizing tax cuts should be a priority early in the new year to avoid a last-minute “fiscal cliff” like the recent showdown over government funding. Not only will this measure provide much-needed certainty for small business owners, it will also send a clear message that the days of putting off important actions until the last moment are over.

3. Turn ship right at FTC

Until Biden appointed Lina Khan to lead the Federal Trade Commission (FTC) in 2021, most Americans had never heard of the agency, and for good reason. Founded a century ago to ensure a competitive business environment and protect consumers, the FTC under the Khan administration has transformed into a highly aggressive agency that has exceeded its authority. did.

Federal Trade Commission Chair Lina Khan has received much criticism from the business community for her aggressive approach. FILE: Mr. Khan testifies before the House Judiciary Committee on July 13, 2023, at the Rayburn House Office Building at the Capitol in Washington, DC. (Chip Somodevilla/Getty Images)

Instead of championing consumers, Khan turned on the business community. she launched countless lawsuits The industry is forced to spend valuable time and resources dodging government regulation rather than growing its business.

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In 2023, Mr. Khan launched an extensive request for information on franchising aimed at eliciting negative comments, but extended the period to summer 2024, without achieving the desired results.

Mr. Trump nominated Andrew Ferguson to replace Mr. Khan, a decision that was quickly made. Already, there are encouraging signs that the tide is turning. The FTC's much-anticipated “junk fee” rules have been tweaked even more tightly than originally prescribed.

Business owners cannot plan when the regulatory environment is constantly changing due to the occupant of the White House. They need certainty.

Achieving America's Golden Age will not be easy, but that should not deter us.

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America did not become the envy of the world by compromising easily. We didn't heed President John F. Kennedy's call to walk on the moon in the 1960s or President Ronald Reagan's small-scale mission to “tear down this wall” in the 1980s.

To reach the 4% economic growth rate, we all need to row in the same direction. The franchise community is ready and willing to do our part.