Vice President Kamala Harris has unveiled a plan to support small businesses across the United States. With nearly half of all private sector employees working for small businesses, Harris’s proposals aim to foster growth and innovation. My plan will invest in small businesses and innovators throughout America,” Harris stated during a recent campaign stop.
One key aspect of her plan is increasing the small business startup tax deduction from $5,000 to $50,000. This would allow more startup expenses to be written off and defer the deduction to years when profits are being generated. Harris also plans to reduce government bureaucracy, create a standard deduction for small businesses, and simplify the process for obtaining occupational licenses across state lines.
She aims to introduce new steps for more investments in rural businesses and ensure one-third of federal contract dollars go to small businesses. While these proposals sound promising, some critics argue that the focus may be misdirected.
Plan to support small businesses
Data shows that startups are already thriving, with the United States averaging 430,000 new business applications per month in 2024, a 50% increase from 2019. The real concern, according to experts, should be for more established, employer-owned small businesses. These companies, which make up 99.9% of US businesses and employ 61.7 million Americans, are facing a slump and struggling to grow.
Targeted support for these businesses may be more impactful. Suggestions for supporting established small businesses include extending the Qualified Business Income Tax Deduction, providing regulatory relief, promoting underutilized government programs, and encouraging Employee Stock Ownership Plans (Esops). As the presidential campaign continues, Harris’s economic plan will likely be a topic of ongoing discussion.
The vice president remains committed to her vision of an “opportunity economy” that supports small businesses and middle-class families. Please make sure you’re involved in the upcoming elections to support these initiatives and drive positive change,” Harris urged supporters.
