Vice President Kamala Harris is set to reveal new initiatives aimed at supporting small businesses and entrepreneurs. This announcement, scheduled for September 4, 2024, in New Hampshire, comes just days before her first debate with former president Donald Trump.
The proposed measures are designed to create a stark contrast with Trump's economic policies, particularly his calls for lower corporate tax rates. Harris's team is considering including plans to strengthen social safety nets, such as expanded child-care or paid leave programs, alongside tax proposals.
Harris's economic vision aligns closely with President Joe Biden's interventionist approach, which advocates for a more active federal role in the economy compared to recent Democratic predecessors. Her initial economic policy proposals, unveiled last month, adopted a populist tone, calling for substantial housing subsidies, a $6,000 child benefit for newborns, and the first federal ban on grocery and food sector price gouging.
The focus on small businesses and entrepreneurs is likely an attempt to appeal to moderate voters who may perceive Harris as too liberal. Campaign advisers are exploring a combination of tax credits and grants to counter the notion that Democrats are unfavorable to business while criticizing Trump's corporate tax cut as primarily benefiting large corporations.
"Trump aims to give tax cuts to corporations."
Small businesses play a crucial role in the U.S. economy, employing approximately 62 million workers. The Biden administration has highlighted record numbers of new business applications during its first three years, with Black and Latino business ownership growing at the fastest pace in over a decade.
John Lettieri, president and CEO of the Economic Innovation Group, noted, "The United States is in the midst of an unprecedented small-business and start-up boom that nobody saw coming. There's been precious little from any policymaker to harness this and keep it going."
Republicans have criticized the Biden administration's business record, arguing that its regulatory push has hindered innovation and growth. The 2017 Trump tax cuts reduced the corporate tax rate from 35% to 21% and created a 20% deduction for S-corporations, set to expire in 2025. Trump has suggested further lowering the corporate tax rate to 15%.
Harris's campaign has previously expressed support for the approximately $5 trillion in tax plans outlined in the White House budget. As she formulates her policy agenda for bolstering small firms, options include targeted tax credits, streamlining business formation processes, supporting retirement plans for small companies, and providing technical assistance to smaller manufacturers.