Democratic presidential candidate Heather Jinli is expected to announce a new economic proposal on Wednesday (September 4), aiming to alleviate the inflationary pressures faced by small businesses in the United States. The plan includes increasing the tax exemption amount for existing startup small businesses tenfold to provide up to $50,000 in tax relief, a significant increase from the current $5,000 exemption.
In 2022, the inflation rate in the United States soared to its highest level in decades. Jinli’s campaign officials stated that the proposal will be announced in New Hampshire, where Jinli will suggest raising the tax exemption for small businesses from $5,000 to $50,000. Currently, the average cost of starting a new business stands at $40,000.
The plan also encompasses measures such as granting unified tax exemptions for small businesses, streamlining the process of industry license applications nationwide, and establishing a small business expansion fund to assist community banks in covering interest costs to support the development of small businesses.
The official further mentioned that Jinli will also announce a goal on Wednesday: if elected, she aims to achieve 25 million small business applications within her first term. This target surpasses the 19 million new small business applications since Biden took office.
According to data from the Small Business Administration (SBA) in the United States, small businesses play a vital role in providing employment opportunities. Around 33 million small businesses in the US employ approximately 46% of private sector workers, and since 2019, these small businesses have generated 70% of new job opportunities.
However, most of Jinli’s proposed economic agenda still requires congressional legislation or amendments to be implemented. Considering that previous similar bills proposed by President Biden were rejected by Congress, even if Jinli wins the election, the success of her policies will depend on whether the Democratic Party can retain the Senate and reclaim the House of Representatives.
Analysis by Reuters points out that Jinli’s overall economic strategy contrasts sharply with her opponent Trump’s, particularly in terms of tariffs and taxation. Jinli’s policy focuses on increasing taxes on wealthy individuals and corporations and increasing federal funding to improve childcare and social welfare for working families.
In her economic proposal announced in August, she pledged tax cuts for the majority of Americans, banning “price gouging” in stores, and building more affordable housing. Notable components include providing a $25,000 down payment subsidy for first-time homebuyers, offering a $6,000 tax credit for families with newborns, and increasing the tax credit for families with older children to $3,600 per year.