With just over one month to go until the presidential election between Vice President Kamala Harris and former President Donald Trump on Nov. 5, Nation’s Restaurant News has curated a list of issues affecting business owners — particularly restaurant operators — and where each candidate stands.
Small Businesses
Harris:
Presidential candidate Harris proposes expanding the small business tax credit from $5,000 to $50,000 to help business owners get their business off the ground. She also set a goal of receiving 25 million small businesses applications in her first term, which would be up from the 19 million received under the Biden administration.
Harris also suggested cutting some of the red tape that makes it difficult for small businesses to thrive, as well as a series of standard tax deductions for small businesses when filing their taxes, per Forbes.
"As president, one of my highest priorities will be to strengthen America's small businesses," Harris said at a campaign stop in New Hampshire earlier this month, according to CBS News. "So, first we're going to help more small businesses and innovators get off the ground."
Trump:
While presidential candidate Trump has not directly addressed a plan to help small businesses, his economic plan this time around is similar to his previous presidential administration, with a focus on less government regulation and tax cuts for most Americans.
However, Project 2025, which has close ties to the Trump presidential campaign, has stipulated that it would put an end to direct lending from the Small Business Administration, and would increase outreach and program eligibility for all small businesses. The plan also proposes creating a “medium-sized” business category for eligibility for certain programs.
"Trump tax cuts will help corporations and support business, while likely making the USA more alluring for business," Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek.
‘No Tax on Tips’
Both Trump and Harris support ending income taxes on gratuities for tipped workers—a policy that was first proposed by Sen. Ted Cruz (R-Texas) this summer through the “No Tax on Tips Act.” The legislation was supported by Trump, who told crowds at the Republican National Convention that it was a “great idea” and would be proposed during his presidential administration, alongside other tax cuts for senior citizens, homeowners, corporations, and more.
Harris stated at a campaign rally in August that she would support eliminating taxes on tips for service and hospitality workers, stating, “We will continue our fight for working families of America.”
The policy has been criticized by detractors who state that they would greatly impact the nation’s federal deficit and would not actually resolve problems for most tipped workers, many of whom already fall below the taxable income line.
Minimum Wage
Harris:
At the same campaign rally where Harris stated she would support ending income taxes on tips for tipped workers, she also said she would work to raise the minimum wage. Raising the minimum wage is also stated as an issue on her campaign page, though she has not indicated by how much she would raise it if she were elected president.
As of August 2024, seven states, plus Washington, D.C., have minimum wages of at least $15 per hour. Additionally, 30 states out of 50 have minimum wages that are higher than the federal minimum wage of $7.25, which has not changed since 2009.
In Harris’ native California, which has enacted a statewide minimum wage of $20 per hour specifically for fast food workers, restaurants have raised their prices in the state and have been seeing lower foot traffic already since the law was enacted in April.
Trump:
Trump’s campaign has not covered the federal minimum wage, but when he was running for president in 2020 against President Joe Biden, he said he “would consider” approving a $15 minimum wage but “would prefer” to leave it up to the states.
According to the Project 2025 policy book, Congress should pass legislation allowing states and local governments to be waived out of federal labor laws like the Fair Labor Standards Act, which enforces the federal minimum wage.
Immigration
Immigration has long been a crucial issue for restaurants, which are one of the largest employers of immigrants in the nation. According to Policy Link, nearly one in three foodservice workers is foreign-born.
Harris:
Harris proposed re-introducing a border security bill that was previously introduced by Congress but then struck down by Trump during his presidential administration. The bill would have closed asylum process loopholes, limited parole of immigrants, and given the president greater authority to shut down the border temporarily when crossings are overwhelmed. Harris states that “unauthorized border crossings are illegal,” but supports creating, “an earned pathway to citizenship and secur[ing] our border” at the same time.
Trump:
Trump promised last year that if re-elected, he would implement the largest mass deportation of immigrants in American history. In 2024, he indicated that he would use the U.S. military to assist with the deportation of these immigrants.
“Kamala’s migrant invasion is particularly devastating the black community and the Hispanic community,” Trump said at a recent rally in North Carolina. “The jobs are going to illegal migrants that came into our country illegally, our black population all over the country, our Hispanic population are losing their jobs.”
Unions
Harris:
Harris has insinuated that her pro-union policy is roughly the same as Biden’s, a wave of support that has resulted in more than 40 unions endorsing Harris for president, including Workers United — the union behind Starbucks workers and other foodservice union organizers — which endorsed Harris for president in July.
Recently, Harris proposed a new series of America Forward tax credits, which would, among other things, reward companies in select industries that will work with unions.
Trump: Although Trump has not formally addressed potential union policies, his campaign touts that more Teamster Union members support Trump over Harris. The Teamsters Union declined to endorse either candidate. The joint employer rule, which made franchisors and franchisees jointly responsible for union contract negotiations, was overturned during the Trump presidential administration in 2017.
In 2018, Trump passed an executive order that streamlined and sped up the process for unionizing federal employees, which critics decried as diminishing the organizing rights of federal employees.
Corporate Taxes
Harris: Harris has proposed raising the corporate tax rate from 21% to 28%, as “a fiscally responsible way to put money back in the pockets of working people.” Critics of this policy have argued that such a substantial increase would result in lower average wages for workers. In a recent interview, Harris addressed concerns that companies would just bring their companies to other tax-friendlier countries. She said in a recent interview with MSNBC:
“I have spent a lot of time with CEOs, and I am going to tell you that the business leaders who are actually part of the engine of America’s economy agree that people should pay their fair share,” Harris said. “They also agree that when we look back at a plan such as mine, that is about investing in the middle class, investing in new industries, investing in bringing down costs, investing in small businesses, that the overall economy is stronger and everyone benefits.”
Trump
Trump's tax plan, by contrast, supports a reduction of the corporate tax rate from 21% to 15% for American companies. Critics have stated that while reducing the tax rate on corporation would boost growth, it would diminish federal tax revenue, which could be a problem given the country’s current deficit.
“With a vision I’m outlining today, not only will we stop our businesses from leaving for foreign lands, but under my leadership, we’re going to take other countries’ jobs,” Trump said in a Georgia rally this week.
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