Democratic presidential candidate and U.S. Vice President Kamala Harris speaks at a campaign rally in Savannah, Georgia, the United States, on August 29, 2024.
Elisabeth Franz | Reuters
Vice President Kamala Harris will unveil a new proposal on Wednesday that would provide a $50,000 tax break for small business start-up expenses, ten times the current amount $5,000 allowed deductionA Harris campaign official said he was asked to remain anonymous to share details of a proposal that has not yet been made public.
Harris The new plan will be unveiled Wednesday at a presidential campaign event in New Hampshire, part of her broader launch into the two-month sprint to Election Day after Labor Day.
Under the proposal, new small businesses could spread the tax break over several years or delay applying for a $50,000 tax break until the company turns a profit.
The IRS has had problems making sure its small business tax credits end up in the right pockets before, especially during the pandemic when the agency saw a spike in fraudulent claims.
The Harris campaign did not respond to a request for clarification on which startups and small businesses are eligible for tax cuts.
On Wednesday, Harris will also set a goal to collect 25 million new small business applications in her first term if elected president. That would be 6 million more than the Biden administration has recorded so far.
The announcements provide ammunition for Harris’ upcoming debate with Republican presidential candidate Donald Trump on September 10, which will be hosted by ABC News. Trump has been trying to position himself as the more pro-business candidate while attacking Harris’ economic record.
Since Harris became the Democratic presidential nominee after President Joe Biden dropped out of the race on July 21, her campaign has been building the vice president’s economic platform at breakneck speed.
With voters consistently citing the high cost of living as a top election issue, Harris’ policy proposals so far have focused on the affordability of housing, groceries, prescription drugs, child care and health care.
Part of that includes a federal ban on what the food industry calls “price gouging,” meaning high food prices are the result of grocery companies artificially inflating prices.
The proposal drew strong opposition from the business community and some economists.
Trump, meanwhile, has long projected himself as a friend to big business. During his third presidential campaign, Trump proposed making his first-term tax cuts permanent, including lowering the corporate tax rate.
“If you think things are expensive now, it will be 100 times worse if Kamala is president for four years,” Trump wrote on his blog last week. X account. “If you want more cash and less taxes, vote Trump!!!”
By focusing on small businesses, Harris’ tax cut proposal could help her navigate the gap between countering Trump’s attacks and continuing the political battle against corporate greed.
Beyond the campaign trail, questions remain about how the vice president would handle business regulation if she were in the White House.
Some of Harris’ supporters on Wall Street say they hope she will take a friendlier approach to big business than Biden on issues such as antitrust enforcement.
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