Tax Deduction Plan of Up to $50,000 for New Small Businesses to be Proposed by Kamala Harris

September 4 :
After entering the presidential campaign more than a month ago, Vice President Kamala Harris's latest economic strategy aims to win over middle-class Americans. On September 4, she will propose a tax break of up to $50,000 for new small companies, 10 times more than existing assistance.

When campaigning for president, Harris hopes to highlight differences in economic policy between herself and Republican Donald Trump, particularly in regard to tariffs and taxes. More taxes on the rich and corporations, along with more government support for programs that help working parents with child care, are central to her progressive economic platform.

According to a campaign spokesman, the new plan is set to be unveiled in New Hampshire and will suggest increasing the beginning expense deduction for small firms from $5,000 to $50,000. Official speaking on condition of anonymity claimed that the average cost to establish a new business is $40,000.

A whopping 70% of the net new employment created in the US since 2019 have come from the country's 33 million small enterprises. These establishments also employ nearly half of all private sector workers, according to the Small Business Administration. The plan also includes a small company growth fund to help community banks cover interest expenses, a simpler way to secure occupational licenses nationwide, and a standardized tax deduction for small enterprises, according to the official.

Companies and lawmakers could oppose Harris's economic vision as a whole. Congress would have to adopt new legislation to alter most tax rules, and they turned down comparable proposals from Joe Biden. Harris promised to reduce taxes for the majority of Americans, outlaw "price gouging" by supermarkets, and provide more affordable housing in her first major speech addressing the economy as the Democratic candidate for president last month.

Additionally, the official stated that on September 4th, she will declare her intention to surpass Biden's 19 million new small business applications in his first term, when he assumed office in January 2021, by a goal of 25 million. Kevin Hassett and Stephen Moore, two of Trump's economic advisors, have said that Harris's plans would hurt the economy and increase inflation. The highly anticipated debate between Trump and Harris, set to take place on September 10th, is likely to include topics related to the economy. Price increases are the result of Biden and Harris's policies, according to Republicans, who hold them responsible for the economy's current state of affairs.