While former President Donald Trump continues to tout his business acumen to make the case that he would oversee a new era of American prosperity, the reality is that Vice President Kamala Harris is far more likely to be better for America’s economy, a sentiment that voters are increasingly warming up to. This is particularly true when it comes to examining which candidate would be better for small businesses in America.
Harris’ plan for small business demonstrates a nuanced understanding of the challenges America’s entrepreneurs face in today’s economic landscape. Her proposals are not just empty promises or concepts of a plan, they’re specific and actionable policies designed to foster entrepreneurship, drive innovation, and ensure that small businesses across the nation can compete against big business.
At the forefront of Harris’ small business strategy is her proposal to expand the tax deduction for new small businesses tenfold, from $5,000 to $50,000. This would be a game-changing policy for entrepreneurs, one that would ensure a substantial financial cushion to help fledgling businesses weather their crucial first year. This policy would ensure that starting your own business would no longer be limited to those with deep pockets or the ability to take on crushing amounts of debt, thereby expanding the pool of entrepreneurs across the economic spectrum. In other words, Harris will give more Americans the chance to pull themselves up by their own bootstraps.
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Complementing this tax deduction expansion is Harris’ innovative plan to launch a small business expansion fund. This initiative would enable financial institutions to provide start-up capital to new small businesses by using federal funds to cover interest costs on loans as these companies find their feet while navigating the often-treacherous waters of their initial year in operation. This policy will also allow us to fund new business ventures in underserved areas, particularly rural America where access to capital is oftentimes severely limited.
Harris’ regulatory approach also makes clear that she is the better small business candidate in that she has articulated a vision for shaping regulations to increasingly exempt small businesses form needing to comply with them. This nuanced approach recognizes that one-size-fits-all regulations often disproportionately burden small businesses. Moreover, Harris recognizes that big businesses inherently need greater accountability as their market power grows.
So too does Harris offer a better tax plan for small business relative to Trump. Harris’ plan is to simplify the tax filing process for small businesses by allowing them to take a simple standard deduction, just as the overwhelming majority of Americans do when filing their personal income taxes. This would not only slash accounting costs for small businesses, it would save small business owners countless hours that they can put back into their businesses.
On the critical issue of immigration, Harris again demonstrates her superior understanding of small business needs. While Trump’s restrictive policies threaten to gut a vital part of the labor force, Harris recognizes that small businesses rely on a diverse and robust workforce. Her approach to immigration reform aims to ensure that small businesses have access to the talent they need to grow and thrive without driving up labor costs, as would happen if the nation were to take on the highly restrictive immigration policies Trump seeks to implement.
Moreover, we cannot overlook the fact that immigrants are often some of our most innovative entrepreneurs. In total, about half of the Fortune 500 companies were either founded by immigrants or their children and altogether boast a net worth that is greater than most developed nations. Limiting immigration limits innovation and denies our nation the unrivaled productive energy that these people bring with them as they come here in search of the American dream.
Lastly, in what is perhaps one of the most under appreciated aspects of Harris’ appeal to the business community, is her predictability. In contrast to Trump’s often erratic and impulsive decision-making, Harris offers the stability and consistency that businesses crave. This predictability allows for long-term planning and investment, essential components of sustainable business growth.
Kamala Harris offers a vision that not only supports small businesses in the short-term but also lays the groundwork for long-term success and innovation. Her comprehensive, forward-thinking approach to small business policy makes her the superior candidate to foster an environment where entrepreneurship can thrive. Harris is, in short, the better candidate for small business.
Nicholas Creel is an associate professor of business law at Georgia College & State University.
The views expressed in this article are the writer’s own.
