Kamala Harris’ Approach Would Destroy Women-Owned Enterprises

American Business Women’s Day, which was commemorated on Sept. 22, honors the accomplishments of businesswomen across the nation. It is our day as female entrepreneurs and business owners to be recognized for our contributions to the landscape, enterprise, and economics of our nation. 

Of U.S. businesses, 90 percent of women-owned shops are nonemployers, so most are solopreneurs. Women own 39.1 percent — about 14 million — of overall U.S. businesses, and women-owned businesses of all stripes generate $2.7 trillion in revenue for the U.S. economy. Should Vice President Kamala Harris ascend to the presidency, these numbers will be severely impacted, and the potential for new female startups will be significantly stalled. 

At the Sept. 10 presidential debate, Harris claimed that she would create “an opportunity economy, investing in small businesses.” She added, “I love our small businesses.” But Harris’ record has reflected less “love” for small businesses and more resentment. 

Harris appears to be on an unrelenting quest to not just be Commander-in-Chief, but Regulator-in-Chief. A Harris presidency would be death by a thousand regulations for small businesses, entrepreneurs, solopreneurs, and independent professionals like myself. As an investigative journalist, writer, and solopreneur, I am a multihyphenate who contracts with mid-sized and larger businesses to write articles and op-eds and do radio and media appearances about various topics. The variety of my work makes up the larger tapestry that creates my brand and intellectual property.

Over the past three-and-a-half years, the Biden-Harris administration has increased economic costs by $1 trillion through burdensome growth-limiting regulations. This is triple that of the Obama-Biden administration, and 30 times higher than the Trump-Pence administration.

Increased Regulation Costs Women-Owned Businesses Dearly

Vice President Kamala Harris was the tie-breaking vote on the American Rescue Plan Act (ARPA). ARPA subjects small businesses to increased IRS 1099-K paperwork. The 1099-K Form used to be used by large corporations and mid-sized businesses to report payments to an independent contractor or freelancer, or for individuals who purchase goods and services through online and mobile payment providers like Venmo and Zelle. Before ARPA, unless you made over $1,000 annually from any client, there was no form required. Now any transaction of $600 or more (whether payment or goods and services) requires a 1099-K Form.

This new requirement takes precious time away from income generation, networking, and collaborative endeavors. As a solo female shop, this negatively impacts my ability to earn. Because accounting is far from my wheelhouse, it also opens me up to costly mistakes. Small businesses and solopreneurships’ fluidity and ability to pivot to the next opportunity is what contributes to our growth and success. 

Then, there is the U.S. Department of Labor’s Independent Contractor final rule. This rule tells independent professionals that we have no right to be an independent contractor unless we meet a set of arbitrary standards that are seen through a government lens — not the lens of our varied industries. The new rule rests on a totality-of-the-circumstances standard that injects confusion and ambiguity into determining work status, inevitably leading to the loss of that independent status. 

Even though enforcement of the rule has been muted thanks to various lawsuits by independent professionals and the independent trucking industry, just like the 1099-K policy, this rule is in effect and hampers the ability to solicit new earning opportunities and will penalize any attempts toward advancement. This has a chilling effect, which stymies female entrepreneurship and businesses like mine.

Regulations like the 1099-K paperwork requirements and the DOL Independent Contractor rule are Harris’ economic legacy. These regulatory barnacles have a chilling effect that has hampered growth and opportunity for women who wish to become entrepreneurs and build businesses. 

At the debate, Harris proposed a $50,000 tax deduction incentive plan that relies heavily on more regulatory oversight, government loan incentives, and tax credits. The greater problem: It does nothing for existing businesses that are currently struggling. Second, it will do nothing to keep a new startup or small business viable and thriving, especially with the burden of launching after three-and-a-half years of Bidenomics. We have already experienced how massive cash injections into the economy only trigger more inflation. This has been devastating to small businesses like mine, which run on slim profit margins.

While the siren song of electing a “first female Black president,” is enticing, symbolism and vibes will not contribute to the growth of my business or my ability to earn and provide for my family.