The election is over and whether you are happy or sad that our president was given four more years at the chief executive position, one thing is clear, Bush will be good for small business. Here?s why:

TAXES
We all know that our taxes were cut during his first term. In an effort to spark the economy out of a recession, the Bush administration reduced marginal tax rates (twice), eliminated the death tax, lowered capital gains & dividend rates, and increased deductions for business property. These efforts apparently worked as the economy grew at a sizzling rate before settling down recently to a respectable 3.7% annual growth rate.

Kerry of course wanted to effectively raising taxes on those making $200,000 or more per year. Although campaign rhetoric probably overstated the negative impact on 900,000 small business owners, its direct effect on some small business owners undoubtedly would be more negative than positive.

With the recent passing of tax legislation, tax policy will continue to favor small businesses with increased deductions in qualified property purchases through 2005 and bonus depreciation. We expect more to come.

HEALTH CARE
Again campaign rhetoric abounded with the health care issue. Although most estimates of the number of uninsured were inflated for effect, high insurance premiums are a big problem. President Bush hopes to combat this problem on two fronts, tort reform and improving HSAs.

Although the cost of lawsuits as a reason for high medical insurance is hotly debated, there is no disagreement that its effect on pricing is mostly negative. With a stronger majority in both houses, the president expects to pass some sort of tort reform legislation during his second term.

President Bush also expects to expand on Health Savings Accounts during his second term. We expect some good things to come from expanded use of HSAs. By introducing competition into the medical system, costs should come down. Additionally, most small business owners who opt for a high deductible plan will see lower premiums and gain from the tax deduction when making monthly investments into their HSA accounts.

A lot of what will happen with the economy is an unknown, but with the focus on small businesses to push economic growth, we expect additional pro-small business legislative policies to pass under the current administration.