As President Joe Biden announces his bid for re-election in 2024, it’s time to evaluate his small business track record and how it might shape the future for entrepreneurs and investors.
Biden’s Legislative Achievements for Small Businesses
Despite various challenges, including the pandemic, supply chain disruptions, and inflation, President Biden has remained focused on supporting small businesses. In his first year, Biden signed the $1.9 trillion American Rescue Plan Act, which provided $350 billion in aid for pandemic response efforts. A significant portion of these funds went to small businesses as grants, loans, and workforce development initiatives.
Additionally, in 2021, Biden passed a bipartisan $1.2 trillion infrastructure law aimed at expanding broadband, improving access to clean water, and repairing the nation’s roads, bridges, and railroads. Entrepreneurs across various sectors, including energy, construction, and telecommunications, are expected to benefit from this law.
In 2022, the Inflation Reduction Act was passed, which aimed to reduce the federal deficit and lower energy costs along with prescription drug pricing. The act also included new tax credits and changes, such as doubling the small-business research and development tax credit from $250,000 to $500,000.
Comparing Biden and Trump’s Legislative Impact
While the number of bills signed and executive orders issued can provide insight into a president’s priorities, it’s essential to consider the significance of these laws. President Biden signed 11 bills into law during his first 100 days, compared to former President Trump’s 28. However, the Brookings Institute highlights that the quality of the laws passed should be taken into account rather than just their quantity.
It’s worth noting that some provisions of Trump’s Tax Cuts and Jobs Act of 2017, which included a deduction of up to 20 percent on qualified business income and adjustments to individual tax brackets, are due to expire in 2025.
Measuring Success and Looking Forward
New laws alone don’t guarantee success, and the uncertainty of navigating new legislation can create challenges for entrepreneurs. With a 37 percent approval rating according to Pew Research Center, Biden’s ability to bring both sides of Congress together in some instances could be a positive indicator for his potential second term.
As President Biden embarks on his 2024 re-election campaign, entrepreneurs and investors should keep an eye on his small business policies and their potential impact on the business landscape. While his first term saw some significant legislative achievements, the true payoff for businesses in a potential second term remains to be seen.