In advance of Nov. 5th, owners of small businesses–the most trusted institution in America–report record levels of uncertainty. But both parties are playing to their concerns.espite the deep divide between the political parties, one patch of common ground remains: Small businesses are likely to benefit, no matter who wins the November 5th election.
Croley says he’s uncertain how the election will ultimately impact small businesses. While he appreciates Harris’ focus on fostering new business growth, he points out that running a small business is challenging, with a high failure rate. Given the importance of small businesses to the economy, he believes, “it’s good to help people get off the ground, but better to support those who know how to operate”—a view he says that aligns him more with Republican proposals.
“One of the smartest aspects of how Republican officials have run their campaigns is to signal a commitment to small business owners,” he says. “But, I think the Harris campaign was pretty hip to this, she took some of their language and made it her own.
Critics argue that the Section 199A deduction favors wealthier owners more than the smaller businesses it was meant to help. IRS data from 2020 shows that filers with over $1 million in adjusted gross income—just 2.2% of claimants that year—accounted for 39% of the amount shielded from tax, suggesting the bulk of tax savings landed with higher-income households.
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