Article Summary –
Vice President Kamala Harris aims to support small businesses with policies to reduce startup costs and increase capital access. Trump’s tariff plans could inflate costs, impact jobs, and disrupt supply chains. Harris’s proposals face potential congressional hurdles, while Trump’s policies may harm business recovery and growth.
Kamala Harris Aims to Empower Small Businesses Amid Trump’s Tariff Challenges
Democratic nominee Vice President Kamala Harris unveiled new economic policies to bolster entrepreneurs and small business owners by cutting expenses and boosting access to capital.
On average, small business owners invest $40,000 to launch their ventures — a significant barrier for many aspiring entrepreneurs.
If elected, Harris plans to increase the tax deduction for start-up costs from $5,000 to $50,000, easing financial burdens and encouraging entrepreneurship.
“As President, strengthening America’s small businesses will be a top priority,” Harris stated in New Hampshire. “We’ll help more small businesses and innovators get started.”
Harris also proposes simplifying tax filings for small businesses by implementing a standard deduction, saving time and money.
She announced plans to modernize regulations to facilitate easier access to federal funding for small businesses, urging state and local governments to follow suit.
Additionally, she suggests a new fund to help small banks cover interest on loans to new businesses.
These initiatives require congressional approval, which could face opposition if Republicans hold the House majority or regain the Senate.
What would Trump do?
Trump, lacking specific small business support plans, proposes tariffs that could harm small businesses. His 20% tariff on all imports and 60% on Chinese goods could effectively tax American households.
Trump claims these tariffs would generate trillions over a decade, but they might reduce other revenues. Morgan Stanley economists warn of potential job losses of 70,000 monthly.
Such tariffs would likely disrupt supply chains, causing chaos for businesses relying on imports.
Importers facing tariffs have three options: accept lower profits, increase consumer prices, or renegotiate contracts.
These tariffs could affect all firms selling imported goods or using imported inputs, leading to decreased production, potential job reductions, and rising prices.
Moreover, Project 2025, a far-right second-term plan, aims to end disaster aid for small businesses, hindering recovery efforts after severe weather events.
During Trump’s presidency, he reduced federal support for small businesses, contributing to the permanent closure of roughly 200,000 American enterprises, and advocated significant cuts to supportive programs.
Trump also frequently failed to pay small businesses and other contractors during his business career.
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