Vice President Kamala Harris is set to announce a significant tax deduction proposal for small businesses, offering up to $50,000 in relief, a tenfold increase over current deductions. This new economic policy is part of Harris’ broader strategy to win over middle-class Americans and emphasize her progressive economic agenda as she runs for president.
Harris plans to unveil the proposal in New Hampshire, targeting small business owners and contrasting her approach with Republican candidate Donald Trump’s economic policies. The plan seeks to expand the startup expense deduction for new businesses from $5,000 to $50,000. According to a campaign official, it costs an average of $40,000 to start a business, making the expanded deduction a crucial support for entrepreneurs.
Small businesses play a key role in the U.S. economy, employing about 46% of all private sector workers and contributing 70% of net new jobs since 2019. Alongside the expanded deduction, Harris’ proposal will introduce measures to simplify the process for obtaining occupational licenses, provide standardized tax deductions for small businesses, and create a fund to assist community banks with covering interest costs.
Harris’ economic agenda focuses on policies that increase taxes on wealthier individuals and corporations while offering more federal support for child care and social programs that benefit working parents. Her plan also includes a goal of 25 million new small business applications during her first term, surpassing the 19 million seen during President Biden’s tenure since 2021.
While Harris aims to highlight her economic platform, she is expected to face opposition from both corporations and Congress, as similar proposals by President Joe Biden have been rejected. Republican critics argue that Harris’ plans could exacerbate inflation and harm the economy. The upcoming debate between Harris and Trump on September 10 is anticipated to focus heavily on economic issues, with Republicans blaming the Biden administration’s policies for rising prices and inflation.
Harris’ latest proposal underscores her commitment to fostering economic growth through small business support and positioning herself as a candidate focused on the middle class and working families.
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