The International Franchise Association (IFA) is making it easier for voters in the franchise community to make informed decisions this election. IFA recently released a pdf that shows a side-by-side comparison of the presidential candidate’s positions on important issues that impact the industry. Included are hot topics such as COVID-19 Relief and Joint Employer Standards. Below is a look at IFA’s report*.
Joint Employer/ AB 5
Biden’s Stance: In 2014, the Obama/Biden National Labor Relations Board (NLRB) created an expanded joint employer standard. This threatened classifying locally-owned franchisees as joint employers with their franchisor, creating employment law and unionization peril for over 700,000 franchise small businesses.
Biden supports the expanded joint employer standard, and his official platform includes codifying it into law via passage of the Protecting the Right to Organize or PRO Act.
Biden’s labor policy platform affirms his support for federalizing components of AB 5 into law, including its franchise-harmful ABC test.
Trump’s Stance: The Trump Administration has made joint employer one of its chief deregulatory pursuits since taking office.
Additionally, the official Statement of Administration Policy opposing the PRO Act lists AB 5’s threat to the franchise sector.
COVID-19 Relief
Biden’s Stance: The Biden for President campaign platform supports additional relief for small businesses in the wake of COVID-19. Biden has proposed extension of the Paycheck Protection Program (PPP), but he has also suggested reforming the program and requiring 50% of new PPP funds to be reserved for small businesses with 50 employees or less.
Trump’s Stance: President Trump has expressed support for additional COVID relief measures for small businesses such as extension of the Paycheck Protection Program (PPP) and liability shields for businesses.
Entrepreneurship & Employee Development
Biden’s Stance: The Biden for President campaign platform includes a continuation of opportunity zones but also poses several reforms to the policy requiring increased disclosure and requirements for investment.
Biden has called for a “Small Business Opportunity Plan” to spur public and private investment in small businesses, with a particular emphasis on promoting minority entrepreneurship.
Trump’s Stance: The President has proposed expanding opportunity zones further which could benefit minority entrepreneurship.
Taxes
Biden’s Stance: Biden has called for a partial repeal of the Tax Cuts and Jobs Act (TCJA), removing the income and payroll tax reductions of taxpayers with annual incomes above $400,000. Currently, the tax reductions in the TCJA save the franchise community an estimated $2.5 billion annually and allow small businesses to enjoy equally competitive tax rates as their larger corporate cohorts.
Biden has also proposed changes to the tax code, including increasing the corporate income tax rate from 21% to 28%, imposing a 12.4% social security payroll tax for wages above $400,000, and proposing a tax credit for small businesses adopting workplace retirement savings plans.
Trump’s Stance: President Trump signed the Tax Cuts and Jobs Act (TCJA) during his first term, which saves the franchise sector approximately $8 billion per year.
Although light on detail, President Trump’s outline for a second term does include several tax proposals, including expanding existing tax breaks, creating tax credits such as a “Made in America” credit, and additional unspecified cuts.
About the IFA
The IFA is committed to protecting, promoting, and enhancing the franchise business model. An advocate for the franchise industry, IFA works with elected officials, representatives, and organizations across all sides of the political spectrum to pursue these goals and the advancement of its members.
Since its founding in 1960 and throughout its sixty-year history, IFA has not endorsed a presidential candidate.
*This information should not be considered an endorsement of either candidate by FranchiseWire, IFPG or IFA.