Most of us have strong opinions about the upcoming Presidential Election. Successful business owners, executives, and investors are no different. They hold strong views like the rest of us, but they are carefully and dispassionately weighing each candidate’s proposed policies to assess how they will react to the outcome – regardless of whether their preferred candidate wins in November. We should all do the same.
How will these policies impact your business? What risks and opportunities does each proposal create for you? How will you invest your resources if you can? Forward-thinking businesspeople are focusing on right now with their ears on the ground for the challenges and opportunities that lie around the corner.
At Soloway, we are fortunate to work with clients and investors who are looking ahead with a sober, strategic perspective, often engaging in spirited discussions about proactive, strategic plans to account for forthcoming changes. We are not here to take sides in this heated contest. We’re here to help our clients win the day – regardless of the election’s outcome.
Ultimately, the outcome of this election will have significant implications for startups, small businesses, and established companies. Each candidate proposes distinct proposals for the economy and entrepreneurship.
With this in mind, we have prepared a brief objective review of a few policies being proposed by Democratic Candidate Kamala Harris and Republican Candidate Donald Trump.
Examining Democrat Kamala Harris’ Policies
Kamala Harris has laid out a series of proposals focused on providing relief and support to startups and small businesses. One of her central economic proposals is her plan to provide an expanded tax deduction for startups, raising the current limit from $5,000 to $50,000. This policy could help entrepreneurs in the early stages of their business by offering significant financial relief or even helping them to start sidecar entities that add additional revenue and lines of business.
However, many startups do not generate enough revenue to fully utilize tax deductions, which raises questions about the policy’s practicality for small, early-stage businesses. Additionally, the criteria for what qualifies as a “startup” under this proposal remain unclear, though early-stage businesses and those engaged in typical startup activities like market research and recruitment are likely to benefit if they are able to access government funding programs or to utilize the proposed tax deductions.
Another of Harris’s proposals involves offering zero-interest and low-interest loans to small businesses to expand. Making capital more accessible to American businesses could help businesses refinance high-interest loans so that they can scale more cost-effectively. However, the details regarding eligibility and the process for accessing these loans are still under development, leaving people uncertain about the practical steps needed to take advantage of this opportunity. Many critics are saying that government loan programs are too complex to navigate affordably while supporters are highlighting the relative cost savings.
Harris also aims to increase the percentage of federal contracts awarded to small businesses from 27.2% to 33%. Though much will depend on the definition of a “small business”, this change could create more opportunities for small companies to land lucrative contracts with the federal government. However, businesses seeking these contracts must comply with stringent legal requirements, including registration and certification processes. For those who qualify, this initiative could open doors to substantial revenue streams and growth potential for the businesses that navigate the legal and regulatory requirements to qualify.
Examining Republican Candidate Donald Trump’s Policies
Donald Trump’s platform centers on tax relief and boosting domestic manufacturing and production. A key component is his plan to reduce the corporate tax rate from 21% to 15%, with additional reductions for businesses that manufacture in the U.S. This could significantly enhance the profitability of those businesses, especially for manufacturers and medium-sized businesses. Companies should work with counsel to evaluate their company structure as this tax rate reduction could make C-Corporation status more attractive than pass-through entities in many cases – and could present other structuring options to get the best of both worlds for businesses that qualify.
Trump also proposes making the Tax Cuts and Jobs Act (TCJA) permanent, which includes a 20% deduction for pass-through entities like LLCs and S-corporations. For business owners operating under these structures, this could offer significant tax savings that they can reinvest in their businesses. Trump also plans to reinstate and make permanent 100% bonus depreciation for tangible business investments, allowing businesses to deduct the full cost of assets like equipment or buildings in the year they are purchased rather than over the usable life of those assets. This would accelerate and improve cash flow while facilitating reinvestment opportunities for companies planning to expand. Trump’s approach seems to be for business owners to fund growth through increased net incomes while Harris’ plan proposes to fund such growth through discounted and interest-free loan programs.
On the international trade front, Trump has frequently stated he plans to impose massive tariffs on imports, particularly on imports from China. While these tariffs could stimulate domestic production, they may also drive up costs for businesses that rely on imported goods as tariffs generally impact the end consumer as much or more than the point of sale. In other words, the price of Trump’s proposed tariffs would most likely be passed on to small businesses and consumers. Companies will need to evaluate how these tariffs might affect their supply chains and whether it is feasible to shift to domestic suppliers.
Move Forward With Confidence and Integrity Regardless of Who is in Office
Whether Harris wins or Trump wins, opportunities and challenges lay ahead for your business. Get solid counsel and expert advice to help you plan ahead for either outcome. Whether you’re a startup, an established company, or an investor, engage your counsel, tax advisors, and board members to plan dispassionately for either outcome. Both candidates are loudly proclaiming the end of our democracy if the other side wins. The future of your business lies beyond the ominous warnings and glittering promises. Be proactive. Work with competent counsel, business advisors, and tax planners to get ahead of the curve.
As always, we are here to help. Contact Soloway today to plan for your future or to apply for a Legal Health Check to secure peace of mind and position your business for continued success before and after the election, regardless of which candidate comes out on top.
Soloway
Latest posts by Soloway (see all)
- Soloway Group Partners with 52 Launch - April 27, 2026
