Fresh off an appearance at the Democratic National Convention, fibre space owner Danielle Romanetti spoke with former Governor Terry McAuliffe about a proposed small business tax plan from Vice President Kamala Harris.
This week, Harris unveiled a policy proposal that would expand the tax deduction for startup expenses from $5,000 to $50,000 with a goal of spurring 25 million new small business applications.
The Washington Post reported the economic plans are estimated to cost roughly $1.7 trillion over 10 years and would still require congressional approval.
Her Republican opponent, former President Donald Trump, proposed lowering the corporate tax rate from 21% to 15%, doubling down on a reduction from his first-term that reduced that tax rate from 35%.
In recent months, Romanetti has become an unofficial voice for Alexandria businesses in discussions with local Democratic leaders, owed in part to 2021 visit to the shop from Harris. Romanetti said the targeted tax reduction for startup expenses would have helped immensely when fibre space was starting.
On average, it costs $40,000 to start a business . Getting this one opened cost $100,000. Restaurants and other businesses with huge build out costs spend up to $200,000 or more to get opened. But right now the tax laws are not set up to support us. With the current law, you get only a $5,000 expense deduction on startup expenses. $5000 thousand dollars, when most of us spent 10 to 20 times that number to get opened.
Romanetti said the tax deduction for small businesses would make it easier for businesses to get off the ground.
“Access to capital is such a huge part of being a success as a business owner, and the single biggest challenge for a new business,” Romanetti said. “Kamala’s plan will help to create a more inclusive small business environment where more people like can start a business, and start it faster. They can recover more quickly from that initial start up investment and be able to hire employees and contribute to their local economies right here in Virginia.”
Also on the call was Derrick Wood, Mayor of Dumfries and owner of a Dyvine BBQ in Motion, a mobile catering business.
“As a small business owner, I know how essential small businesses are to the economy as a whole,” Wood said. “Vice President Harris; I believe she knows that too… I went from BBQ making to policy making, so I understand what it is the Vice President wants to do by cutting this red tape. [Small businesses] are the backbone of rebuilding and strengthening middle class.”
