I’m a Financial Planner: Here’s What a Kamala Harris Presidency Would Mean If You Plan To Start a Business in 2025
Kamala Harris, the Democratic presidential nominee for this year’s election, has yet to unveil her first economic policy plans — though she intends to soon. Given this, it’s unclear just how a Harris presidency would affect businesses in the United States.
Even though it’s too soon to say with certainty what’ll happen next, many economists, political observers and financial planners are trying to predict what a Harris presidency might mean for the future. GOBankingRates spoke with one such individual, David Fritch, about his predictions on the upcoming election and the factors that could affect those starting a business — as well as current business owners — going forward.
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Harris Has a Track Record of Supporting Small Businesses
Harris has a track record of supporting small and local businesses. During her time as vice president and in the Senate, she has consistently supported the small business community. Given this, there’s a good chance that she’ll continue to do so going forward if elected president.
This is potentially good news for those who want to start a business in 2025. But it might be better not to make your decision solely based on who ends up in office — it might not affect your business quite as much as you expect, especially in the beginning.
“I don’t anticipate major direct impacts on my business or clients from the 2025 election,” said David Fritch, an investment advisor, estate planning attorney and owner of Fritch Law Office and CPA practice. “However, broader economic and policy changes could affect small businesses.”
In terms of policies, Vice President Harris has already played a key role in passing and implementing legislation to support the American people and business owners alike.
For example, she supported Biden’s Investing in America Agenda, which prioritized making main streets and communities stronger. Harris was also the one to cast the deciding vote on the American Rescue Plan, which provided $1.9 trillion in funding to support those affected by the COVID-19 pandemic.
Perhaps more importantly for businesses, Harris was integral in getting the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act) passed. While this act has had a wider-reaching impact, it’s also positively impacted many small businesses, allocating hundreds of billions of dollars in funding to different projects across several thousand communities nationwide. This funding has helped revitalize smaller communities, helped small businesses thrive and compete and given consumers the confidence in shopping locally again.
Not only that, but the Biden-Harris administration has a track record of increasing spending on small business contracts. As of fiscal year 2022, small businesses received almost $163 billion in federal contract dollars — of which $70 billion ended up in the hands of small businesses run by economically and socially disadvantaged owners.
Plus, Harris has made a point of prioritizing helping small business owners get access to the capital they need to stay afloat and grow. In 2022, Harris established the Economic Opportunity Coalition, which directly addressed economic disparities — particularly in underserved communities. As part of this coalition, over $3 billion was raised to support the recovery of these communities and pave the way to economic growth.
All of this is to say that Harris could continue to support small businesses going forward, a good thing for those looking to start one up in 2025 or beyond.
Any Changes Could Be Multi-Layered
Going with the idea that future regulations and policies could impact businesses, Fritch believes that a Harris presidency could have both a positive and a negative effect — though it might all balance out in the end.
“If Harris were to increase corporate taxes, some of my clients’ businesses may face higher costs,” he said. “However, more government spending could boost consumer demand, offsetting this.”
Additionally, Harris has consistently encouraged consumers to “shop small” — that is, to shop locally. If this were to continue going forward, it could be a good sign for those starting their own business who want to keep things local.
But it’s important for future small businesses to understand how regulation could affect them — positively and negatively.
“Regulation is always a concern,” Fritch said. “But targeted relief for small businesses, like simplified employee benefits or tax credits, may encourage entrepreneurship.”
Health Coverage Expansions Can Have a Positive Impact
Fritch also spoke about how expanded health coverage under the current administration has made it easier for some business owners to invest more in growing their ventures. Recently, the Center on Budget and Policy Priorities posted an article about how millions of small businesses have gained health coverage through the Affordable Care Act (ACA) of 2010.
Back in 2022, the rate of uninsured individuals reached record lows. Historically speaking, small business owners tend to have a higher uninsured rate for their employees, especially compared to large businesses. A big reason for this is the lack of affordable healthcare, something the ACA strives to address.
While this is not directly correlated to Harris, the Democratic party has historically supported quality, affordable healthcare. For small business owners who want to provide affordable healthcare to their employees, the possible expansion, or at least the continuation, of the ACA could be a boon.
Bottom Line
Right now, it’s too soon to say what’ll happen if Harris becomes the next president. But if history is anything to go by, there could be quite a few positive changes for new businesses — especially those in underserved communities.
“Overall, the impacts will depend on the specific policies that emerge after the election,” Fritch said.
His advice to any new business owners is to focus on controlling costs and adapting to any changes that come your way.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: I’m a Financial Planner: Here’s What a Kamala Harris Presidency Would Mean If You Plan To Start a Business in 2025
