Vice President Kamala Harris is set to unveil a major tax deduction initiative aimed at new small businesses, ahead of the 2024 election, marking a significant policy move in her campaign as she looks to take on former President Donald Trump on the economic policies front.
What Happened: Harris plans to introduce a tax deduction of up to $50,000, a substantial increase from the current $5,000, aiming to support middle-class Americans. This proposal is part of her broader economic strategy as the Democratic presidential nominee, Reuters reported.
The announcement will take place in New Hampshire.
Harris’ campaign official, who spoke on condition of anonymity, according to the report, stated that the average cost to start a new business is around $40,000. The proposal also includes a standardized tax deduction for small businesses and measures to simplify obtaining occupational licenses nationwide.
Additionally, the plan features a small business expansion fund to help community banks cover interest costs. The United States has approximately 33 million small businesses, employing about 46% of private sector workers and contributing to 70% of net new jobs since 2019, according to the Small Business Administration.
Harris’ economic agenda, which also includes increased federal funding for childcare and other social programs, may face opposition from corporations and Congress. Similar proposals from President Joe Biden have previously been rejected.
During her first major economic speech last month, Harris committed to tax cuts for most Americans, banning “price gouging” by grocers, and increasing affordable housing. She aims for 25 million small business applications in her first term, surpassing the 19 million under Biden.
Republican advisers Kevin Hassett and Stephen Moore argue that Harris’ proposals could increase inflation and harm the economy. Harris and Trump will debate on Sept. 10, with a focus on economic issues.
Harris’ official campaign team did not immediately respond to Benzinga's request for comment.
Why It Matters: Harris’s new tax deduction proposal is part of a broader economic strategy that has been unfolding over the past few months. In her recent ad campaign, Harris took a direct shot at Trump’s economic policies, highlighting her commitment to middle-class Americans.
Additionally, Harris’s tax plan targeting the ultra-wealthy has caused a stir in Silicon Valley, indicating her broader strategy to address income inequality.
Her housing plan, which includes tax incentives and the use of federal land, has also been under scrutiny, with real estate experts analyzing its potential impact on the market.
Moreover, Harris’s proposal to end taxation on income from tips, which she announced at a Las Vegas rally, mirrors a similar idea floated by Trump this year. This move has sparked debates across the political spectrum, especially in states with a high number of tipped workers.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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