Through the American Rescue Plan and the equitable implementation of emergency relief programs, President Biden and Vice President Harris fostered the strongest recovery for Main Street on record. In 2021, Americans applied to start 5.4 million new businesses—more than 20 percent higher than any previous year on record.
The boom in new business creation has been particularly strong for entrepreneurs of color. In 2021, Hispanic Americans started new businesses at the fastest rate in more than a decade and 23 percent faster than pre-pandemic levels.
And, in the three-quarters of 2021, small businesses with fewer than 50 employees created 1.9 million jobs, the fastest start to small business job growth in any year on record.
This new White House report details the historic recovery for America’s small businesses and demonstrates how the Biden-Harris agenda laid the foundation for this small business boom. By focusing on combatting the pandemic, providing Americans with greater financial security, and delivering more than $450 billion in emergency relief to small businesses, the Biden-Harris Administration has helped create the conditions for unprecedented business and job creation.
The Biden-Harris strategy to rescue and revitalize Main Street contrasts sharply with the latest tax plan from Republicans in Congress. The Congressional Republican proposal put forward by Senator Rick Scott to impose a minimum tax on middle-class families would increase taxes on small businesses across the country. In addition to detailing the historic economic progress the Biden-Harris Administration has made to date, the Appendix includes a new state-by-state analysis of the Congressional Republican tax plan. The analysis finds that this tax plan would raise taxes on nearly half of small business owners (6.1 million people), including 82 percent of small business owners making less than $50,000 per year. Under the Congressional Republicans’ plan, the typical small business owner would see their taxes increased by almost $1,200.
President Biden rejects Congressional Republicans’ plan to increase taxes on half of small business owners. His four-pillar economic strategy for small businesses will lower costs and level the playing field for families and small businesses. The plan is focused on:
1. Expanding access to capital,
2. Making historic investments in helping small businesses navigate available resources,
3. Leveraging federal spending to support small businesses, and
4. Leveling the playing field for small business owners by reforming the tax code.