Kamala Harris' tax trick doesn't fool small business owners

In a recent poll by Job Creators Network, America's leading small business advocate, Vice President Kamala Harris trails former President Donald Trump by 12 points among America's more than 30 million small business owners. This wide latitude comes as no surprise to small business owners for two reasons: the first has to do with common sense and decency, and the second has to do with shared experience.

First, let's talk common sense and decency, as Harris plans to offer a $50,000 tax credit new Startups mean absolutely nothing to this available Over 30 million small business owners. Actually, it's an insult – if the Harris team had even an ounce of decency. Why provide benefits to a non-existent group that may or may not use a delayed benefit while providing no benefit at all to the tens of millions of small business owners already serving their customers and communities? And fight to stay alive – and grow.

To make matters worse, Harris' plan to raise taxes on corporations gets even worse increase Taxes on about 20 percent of small business owners who have C corporations, as well as on the large corporations in America that do business with these very small companies. And Harris' plan to increase the income tax will impact many millions more small businesses – the vast majority – which are either S-corporations, limited liability companies or other companies that report their business income to the of the business owner personal Balance sheets. A tax increase on owners' personal income is, in effect, a tax on their businesses.

Worst of all, the benefit Harris is offering — a $50,000 tax credit — contradicts the harsh realities of starting a business. According to the Small Business Administration (SBA), it takes startups an average of two to three years to turn a profit. When this is the case, most entrepreneurs reinvest their profits into growing their business. That means it can take four to five years for the Harris incentives to actually help a startup.

Which raises a simple question: Has anyone on the Harris team ever started or run a business, let alone a lemonade stand? Anyone doing even a cursory search on the Yahoo Business website that isn't specifically about the Wharton enterprise would come across the following statement about the early years of a startup: “Most entrepreneurs – at least those who are struggling to survive Hearts lie – reinvesting almost all profits back into the company.” “Weakening the business in those crucial first few years, even if it means living on savings or working a second job,” wrote Yahoo. To that, any small business owner anywhere in America would respond with a shrug: “Duh!”

Beyond Harris' problem with common sense and decency, there is the common experience shared by millions of business owners during the Trump and Harris years. Overall, Trump's tax cuts had a positive impact on small business growth, profits, worker wages, and the overall economy. The rising economic tide lifted the boats of small business owners from all walks of life: urban and suburban, young and old, straight and gay, male and female, and white, brown and black alike. Trump's tax cuts did not discriminate or create MFN groups. Instead, they represented the interests of all entrepreneurs equally. And powerful.

“We see small business owners taking advantage of President Trump’s tax cuts and deregulation efforts to invest in their companies and their employees by increasing wages, providing bonuses, increasing benefits and creating more jobs,” said Michelle, SBA Mid-Atlantic Regional Administrator Christian told the Associated Press in 2019, “The economy is strong and small businesses are thriving.”

The fact is that small business owners don’t need to be reminded of how they fared under Trump; they remember. They watched as he fought to cut corporate taxes from 35 percent to 21 percent, a huge breakthrough that allowed many owners to invest more of their own profits back into the company. They also watched him cut income taxes, which helped many millions more people.

While Harris and her Democratic allies caricatured Trump's tax cuts, he understood the plight of small business owners. He understood how these tax cuts – for both corporations and individuals – promote the growth and success of the business community. And also stimulate the American economy.

Trump understands these things because he himself was the product of a family construction business. He understands what drives small business owners. What they are worried about, what they are going through and what motivates them. Most importantly, Trump understands that small business owners want their companies to grow larger in hopes of one day passing it on to their children.

Perhaps most importantly, Trump understands that the bulk of net job creation is being driven not by large multinational corporations but by small business owners, who employ nearly 50 percent of the American workforce. As Trump knows, it's the same for small businesses as it is for America.

Small business owners also remember how they fared under the Biden-Harris administration. They remember how inflation affected their bottom line – and how rising interest rates due to rising inflation created costs that disproportionately burdened small businesses compared to their larger counterparts.

And small business owners surely remember how the Blue City and Blue State Democrats treated small business owners during the excessive COVID lockdowns. And how red state governors like Ron DeSantis of Florida and Brian Kemp of Georgia have been attacked by Democrats and their media allies because they value money and the survival of their companies over human lives. Many have lost their businesses entirely, while others are still struggling with the unnecessary and pointless suffering that the lockdowns have inflicted on small business owners and their families.

Team Harris should stop pretending to care about the plight of small business owners. Because they’re not fooling anyone with their small business startup gimmick. Especially the huge voting bloc of 30 million small business owners and voters.