How Do Presidential Candidates’ Agendas Stack Up for Small Business?
Former Mayor Rudolph Giuliani proposes a new income tax exclusion that would provide incentives for individuals to purchase their own insurance, with tax credits for those with low incomes. Sen. John McCain would also create a tax credit for anyone purchasing insurance through an employer or on his/her own. Likewise, former Gov. Mike Huckabee would use tax deductions and tax credits to encourage people to buy insurance, and former Gov. Mitt Romney would permit full deductibility of qualified medical expenses and would eliminate the minimum deductible requirement for HSAs. Fred Thompson has generally supported tax incentives to encourage individuals to purchase insurance.
The centerpiece of Romney’s health-care plan would provide block grants to states to encourage them to adopt market-based health care programs. Giuliani has also endorsed block grants, and Huckabee has advocated that states be encouraged to act as laboratories for new market-based approaches. Romney’s cautious approach is a sharp diversion from the plan for universal coverage that, as governor, he shepherded through the Massachusetts legislature in 2006—a plan from which he is now trying to distance himself.
More than any other Republican candidate, McCain has proposed a detailed plan based upon cost containment and quality of care, particularly the performance of doctors. McCain’s approach also includes a proposal for small businesses and the self-employed to purchase health insurance through qualified organizations or associations.
Innovation, Economic Development, Education and Access to Capital
Despite the curious dearth of explicit references to small business needs, many of the candidates, particularly the Democrats, have made proposals that would offer direct benefits to American entrepreneneurs.
Obama, in particular, offers a host of proposals targeted to small business growth and development, including the elimination of capital gains taxes on start-up businesses. Other unique Obama proposals include the creation of public-private business incubators, expansions of programs targeting capital to minority and under-served communities and patent reform.
All of the Democratic candidates, particularly Obama and Clinton, offer Innovation Agendas that include an expanded role for the federal government in supporting new technologies, particularly new sources of energy and biotechnology, a revamped education system focusing heavily on math and science, making the R&D tax credit permanent, and universal broadband access.
