Vice President Kamala Harris is set to propose a tax deduction of up to $50,000 for new small businesses on Wednesday, a significant increase from the current relief and part of her economic policy aimed at appealing to middle-class Americans as she campaigns for the presidency, which she announced over a month ago.
Harris seeks to differentiate her economic strategy from her opponent, Republican Donald Trump, focusing on tariffs and taxes. Her progressive agenda emphasizes taxing wealthier individuals and corporations, along with increasing federal funding for child care and other social programs designed to support working parents.
The new plan, to be unveiled in New Hampshire, will propose expanding the small business startup expense deduction from $5,000 to $50,000, according to a campaign official. The official, who spoke anonymously, noted that it typically costs around $40,000 to start a new business.
According to the Small Business Administration, the U.S.'s 33 million small businesses employ roughly 46% of all private-sector workers and have contributed to 70% of net new jobs since 2019.
In addition to the deduction, Harris' proposal includes a standardized tax deduction for small businesses, easing the process of obtaining occupational licenses nationwide, and establishing a small business expansion fund to help community banks cover interest costs, the official added.
Harris' broader economic agenda, which calls for higher taxes on wealthier individuals and corporations, may face opposition from both corporations and Congress. Similar proposals from President Joe Biden were previously blocked by lawmakers.
In her first major speech focused on the economy last month, Harris promised to cut taxes for most Americans, eliminate "price gouging" by grocery stores, and increase affordable housing.
On Wednesday, Harris will also announce a target of 25 million small business applications during her first term, surpassing the 19 million applications seen under Biden, who took office in January 2021, the official said.
Trump's economic advisers, Kevin Hassett and Stephen Moore, have previously argued that Harris' proposals would exacerbate inflation and harm the economy. Harris and Trump are scheduled to debate on September 10, with the economy expected to be a key issue.
Republicans have criticized Biden and Ha
