Vice President Kamala Harris has proposed a series of policies to support small businesses in the United States.
VP @KamalaHarris has a plan to grow our economy and support the middle class.
This will help ensure our small businesses continue to have the resources they need to grow and thrive.https://t.co/6ai0l1vKIq
— Deborah Ross (@DeborahRossNC) September 9, 2024
At a campaign stop in New Hampshire, Harris announced plans to expand the small business tax credit from $5,000 to $50,000 to help startups cover the costs of launching. Harris set a goal of receiving 25 million new small business applications in her first term, up from 19 million filed under the Biden-Harris administration.
She stated, “As President, one of my highest priorities will be to strengthen America’s small businesses. We’re going to help more small businesses and innovators get off the ground.”
If the personal income tax credits are allowed to expire, American will see their federal income taxes rise by an average of $1,100. Additionally, an estimated 2 million full-time jobs would be destroyed. I’ll keep pushing to extend these tax credits. https://t.co/gJoLfbnaGp
— Gus Bilirakis (@RepGusBilirakis) September 9, 2024
Kamala Harris’s plan to hike capital gains taxes by nearly 40% is a brutal attack on entrepreneurs and small businesses. Masking it as “moderate” is a sham—she’s crippling the very innovators she claims to support.https://t.co/mXKicFUceh
— Glenn Hegar (@Glenn_Hegar) September 8, 2024
In addition to enabling the creation of new small businesses, Harris aims to make it easier for existing companies to expand by cutting “red tape” that complicates starting and growing a small business. She advocated for a 28% capital gains tax rate for those making over $1 million, differing from President Biden’s proposed 39.6% rate.
Small businesses are the backbone of our Queens communities and our country. As president, @KamalaHarris will be the partner they need to grow and thrive. https://t.co/pe2pRENOQq
— Grace Meng (@Grace4NY) September 9, 2024
Harris’ proposal includes allowing new businesses to wait until they turn a profit to claim the tax credit, reducing their tax burden. She also wants to streamline the tax-filing process by developing a standard deduction for small businesses, making it easier to obtain occupational licenses, and incentivizing governments to relax restrictive regulations.
Supporting growth for small businesses
“We will make it cheaper and easier for small businesses to file their taxes,” Harris said, emphasizing her desire to reduce bureaucratic hurdles. Other features of Harris’ economic agenda include promises to cut taxes for most Americans and build more affordable housing. Her campaign underscores the conviction that the nation’s 33 million small businesses are vital to the U.S. economy, employing nearly all private-sector workers, generating trillions of dollars annually, and driving economic growth and innovation.
However, some concerns have been raised that Harris’ focus on startups might be misplaced. With the United States averaging 430,000 new business applications per month in 2024, additional incentives may not be necessary. Instead, critics argue that the focus should be on more established, employer-owned companies, which make up 99.9% of all businesses and employ 61.7 million Americans.
Suggestions for better supporting these businesses include extending the Qualified Business Income Tax Deduction, providing regulatory relief for the smallest companies, increasing awareness of existing programs that help businesses secure government contracts, and encouraging Employee Stock Ownership Plans (ESOPs) to ensure business continuity and employee job security. As the presidential election approaches, the debate over Harris’ proposals highlights broader discussions around tax policy and economic strategy. Any changes to the capital gains tax rate or small business support will ultimately require congressional approval, where control of the House and Senate remains uncertain.
- TheGuardian.”Harris plans to help small businesses – but she’s targeting the wrong ones”.
- CNBC.”Harris wants to raise the top capital gains tax rate to 28%. How that compares with recent history”.
- CBSNews.”Kamala Harris proposes $50,000 tax break for small businesses”.