Kamala Harris’ Focus On Small Business: Her Job Creator Plan
Vice President Kamala Harris recently announced her “Entrepreneurs & Innovators Policy Plan” in New Hampshire, aiming to enhance support for small businesses, particularly startups and entrepreneurs. Here’s a detailed breakdown of her proposals:
1. Tax Deductions
- Increased Startup Deduction: Harris’ plan raises the startup tax deduction from $5,000 to $50,000. This would allow businesses to cover more costs associated with starting up, such as market surveys, equipment, and staff training. The flexibility in claiming the deduction allows founders to time it better for financial benefits, especially when the business begins generating profit.
- Standard Business Deduction: To simplify tax filing, Harris proposes a standard deduction for small businesses, similar to what’s available to individual filers. This change aims to reduce the burden on small businesses that currently spend significant time and money on tax preparation.
2. Expanding Federal Contract Opportunities
- Harris plans to allocate one-third of federal contract dollars to small businesses, surpassing the current goal of 23%. This shift could increase small business revenue by $20 billion, offering new growth opportunities, particularly for rural and underserved businesses.
3. Small Business Expansion Fund
- The Small Business Expansion Fund will focus on aiding small businesses in underserved communities by providing access to affordable capital. This initiative allows community banks and financial institutions to cover interest costs for businesses during their growth phase, giving entrepreneurs the space to focus on expansion without immediate financial pressure. It builds on the State Small Business Credit Initiative 2.0 from the American Rescue Plan, which enhances access to investment programs at the state level.
4. Reducing Regulatory Burdens
- Harris proposes cutting through red tape by easing regulatory requirements for small businesses. This includes streamlining the process of obtaining occupational licenses and simplifying business licensing, zoning, and permit approvals. Additionally, her plan incentivizes state and local governments to reduce these burdens, making it easier for entrepreneurs to launch and grow businesses.
