Small businesses would receive funding from Harris' tax proposal, but also face cuts.
Kamala Harris proposes to boost small business tax deduction by ten times.
On Wednesday, Vice President Kamala Harris will publicly announce new tax proposals for small businesses, which she unveiled on Tuesday.
The campaign proposes to double the federal government's small business tax deduction from $5,000 to $10,000, which will help reduce the $40,000 cost burden of starting a new business. Additionally, the proposal allows small businesses to defer claiming the deduction until they become profitable, allowing them to use it strategically to save more money in the future.
On Tuesday, Harris plans to reveal a goal of boosting new small business applications from 19 million under the Biden administration to 25 million under a potential Harris-Walz administration.
Harris promised to establish a small business expansion fund to assist loan providers in low-income areas in covering interest costs for businesses looking to relocate or create jobs in regions that have traditionally received less investment, while also encouraging state and local governments to streamline their business regulations and reduce barriers to obtaining occupational licenses.
Harris's new tax proposals are being opposed by conservative economists, who argue that the plan involves giving businesses larger tax deductions while simultaneously increasing their tax rates.
"E.J. Antoni, an economist at the Heritage Foundation, stated that the left hand is unaware of the right hand's actions, making it incomprehensible."
The Harris campaign did not provide a comment on the new tax proposal package, but former 2020 Biden campaign adviser Rhett Buttle stated that Kamala Harris believes small businesses are crucial for a strong middle class and wealth building in the country.
According to Tobin Marcus, the former economic advisor to Vice President Biden and the head of U.S. policy and politics at Wolfe Research, politically it makes sense for Harris to focus on supporting small businesses and entrepreneurs. However, in practice, federal policies aimed at helping small businesses are often limited in scope.
On Sunday, the Trump campaign stated that the only way to increase one's income is by voting for President Trump.
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