Are the Harris, Trump Campaigns Built on Empty Promises?
As the lifeblood of America, the small business community is finding itself caught between two competing visions for the future of our nation. Just as any candidate running for political office would, Vice President Kamala Harris and former President Donald Trump have put forth policy proposals they believe would best address the concerns of the American people.
However, as the President & CEO United States Hispanic Business Council (USHBC), I can’t help but wonder if many of these commitments are empty promises.
Harris, for instance, recently proposed a $50,000 tax credit for small businesses, a tenfold increase from the current $5,000.
This is an especially attractive policy proposal for the American small business community, but faces challenges in a divided government. With the rising cost of living and increasing operational expenses, many small businesses are having trouble staying afloat and accessing the capital they need.
While this proposal certainly seems helpful, the reality is that the tax deduction can only be fulfilled over the course of several years, or once a business turns a profit. Cash flow, however, is the primary issue for new businesses, and often why they fail. Given the amortization requirements, this tax credit would not offer the necessary immediate funds.
Harris also promises to “bring back” the bipartisan border security bill and sign it into law. Furthermore, she proposes repealing the Trump-era Tax Cuts and Jobs Act (TCJA) and imposing tax hikes on wealthy Americans and on capital gains.
The reality is, no matter who wins the election, it seems unlikely that there will be a unified government. In fact, Republicans seem uniquely positioned to take back the Senate. Many current Republican Senators have explicitly said they will not sign the bipartisan border security bill into law. It is also unlikely they would oppose the Trump tax cuts and vote for a tax hike. Therefore, the Vice President should come up with realistic solutions and speak to the basic reality of having to work with Congress.
During her debate against Trump, Harris made the claim that there are no members of the United States military deployed in any combat zones around the world. While the United States may not be at war, there are still several thousand U.S. troops deployed in combat zones around the world, carrying out objectives coming directly from the Department of Defense.
Claims like these cannot sit well with military families across the country. Additionally, considering that in 2022 over 18% of active-duty servicemembers identified as Hispanic, such claims also have far-reaching impacts on Hispanic-American families.
Turning to the Former President, he has recently proposed lowering the corporate tax rate to 15%. However, he faces the same challenges as Vice President Harris in implementing this change - it is unlikely that either will have control over both the House and Senate.
This will make implementing divisive policy, such as tax hikes or cuts, extremely challenging. Both candidates should address how they may have to work with a House or Senate controlled by an opposing party to make their promises a reality.
Trump has also promised to “begin the largest deportation program in American history.” Rather than make such a broad and outward promise, he should discuss the actual specifics to achieving it, especially in the face of a potentially divided government.
Additionally, as an advocate for small business, I am acutely aware that a mass deportation would have a devastating impact on cornerstone American industries like agriculture, hospitality, manufacturing and construction.
The Former President has consistently degraded immigrants when discussing the border, ignoring the economic contributions of our immigrant community. While it’s true that criminals are entering our country illegally, it’s disingenuous to ignore the millions of people who come to our country wanting to do nothing more than work and achieve the American Dream.
The Trump campaign should address how a second Trump Administration would help American small businesses who, in many cases, actually rely heavily on the contributions of immigrants.
Similar to his plans for mass deportation, Trump’s proposed tariffs on China ignore the realities and needs of our small businesses. Such tariffs would increase prices for consumers, raise the cost of production for businesses, reduce sales, and decrease the employment rate.
Yet it is still not clear how Trump would impose 10%-20% tariffs across the board with significant bipartisan opposition. Contrary to his claim, he does not have the authority to unilaterally levy tariffs, unless the Department of Commerce has determined it is in the best interest of national security. The Trump campaign should outline a plan to incentivize domestic production, not mandate it.
Both Kamala Harris and Donald Trump have a responsibility to not mislead the American people, and to come up with actionable plans to improve the lives of American families. Despite the increasing use of executive orders, the reality is that the incoming presidential administration will have to work with a potentially divided Congress to achieve its objectives. Both campaigns need to get real.