Vice President Kamala Harris is poised to introduce a tax deduction of up to $50,000 for new small businesses as part of her strategy to strengthen her economic credentials in the tight presidential race. This initiative aims to support startups and stimulate economic growth.
Harris will reveal the plan on Wednesday in New Hampshire, outlining her ambitious target to generate 25 million new small business applications within her first four years if elected. This proposal is designed to boost entrepreneurial activity and create jobs.
The tax deduction is part of Harris’s broader economic agenda and is expected to play a key role in her campaign, highlighting her commitment to fostering a supportive environment for small businesses and entrepreneurs.
Under existing tax regulations, small businesses can currently claim a deduction of up to $5,000 for expenses incurred during their first year of operation.
Last week, at a campaign event in Savannah, Georgia, Kamala Harris highlighted her new plan, emphasizing that supporting small businesses is one of her top priorities. She noted that small businesses are integral to the American economy, stating, “Half of America’s working population either owns, runs, or works in a small business.”
Since joining the presidential race in July, Harris has managed a modest lead over former President Donald Trump in most polls. However, she is often viewed as less capable of managing the economy compared to her Republican opponent.
Kamala Harris, who became the Democratic nominee after President Joe Biden announced in July that he would not seek re-election, has faced criticism for her limited policy proposals and reluctance to engage with the media. Despite these challenges, Harris continues to push forward with her policy agenda.
Her latest announcement, which introduces a $50,000 tax deduction for new small businesses, comes as she prepares for her first presidential debate against Donald Trump in Philadelphia on Tuesday. Harris aims to present her economic policies as more advantageous to middle-class Americans compared to Trump’s proposals, which include significant tax cuts such as reducing the corporate tax rate from 21 percent to 15 percent.
In her initial economic policy rollout last month, Harris outlined her vision for an “opportunity economy,” featuring a $25,000 subsidy for first-time homebuyers, a $6,000 child tax benefit for newborns, and a federal ban on price gouging for groceries. These proposals are part of her broader effort to address economic issues and support American families.
