Article Summary –
Kamala Harris unveiled policies to support small businesses, including expanding tax deductions for startup costs to $50,000, simplifying tax filings, and creating a fund to help small banks cover loan interest. Additional initiatives involve modernizing regulations and expanding federal contract opportunities. Harris aims to create 25 million new businesses in her first term and proposes rolling back Trump’s tax cuts to fund community investments.
Harris Proposes Expanding Small Business Tax Deduction and Support Fund
Kamala Harris on Wednesday unveiled new economic policies aimed at supporting small business owners by reducing expenses and increasing access to capital.
Harris’ proposal includes expanding a tax deduction for startup costs to ease financial burdens on small business owners and encourage entrepreneurship.
Currently, small businesses receive a $5,000 deduction for first-year expenses, according to the Congressional Research Service. Harris proposes increasing this to $50,000, closer to the $40,000 average startup cost.
“As President, one of my highest priorities will be to strengthen America’s small businesses,” Harris said. “We’re gonna help more small businesses and innovators get off the ground.”
Harris aims to simplify tax filing for small businesses by implementing a standard deduction.
She plans to modernize outdated regulations to make it easier for small businesses to receive federal funding and encourage state and local governments to do the same.
Harris also proposed a new fund to allow small banks to cover interest on loans to new businesses and called for additional funding for these banks.
“We want to take away some of the bureaucracy involved in being a small business owner,” Harris said.
As vice president, Harris promoted Community Development Financial Institutions (CDFIs), which provide capital to low-income communities.
Deputy Treasury Secretary Wally Adeyemo told CNN that CDFIs help new businesses without financial histories.
Interest rates for small businesses have risen particularly high, making it even harder for startups.
Harris plans to re-capitalize and expand the Treasury Department’s State Small Business Credit Initiative (SSBCI), prioritizing rural and underserved communities.
Additionally, her administration plans more funding for the Rural Partners Network, focusing on job creation and community improvement.
Harris seeks to expand federal contract opportunities to smaller businesses, traditionally awarded to larger corporations.
Her proposals are part of a broader economic agenda focused on middle- and working-class voters. “We know a strong middle class has always been critical to America’s success,” Harris said.
Harris aims to surpass President Biden’s record of 19 million new businesses by targeting 25 million new businesses in her first term.
She contrasted her plans with former president Donald Trump, advocating rolling back certain provisions of Trump’s 2017 Tax Cuts and Jobs Act to fund community projects. The tax cuts primarily benefited the ultra-wealthy.
Like Biden, Harris supports a billionaire minimum income tax and wants to increase the corporate tax rate to 28%. She also proposes quadrupling the tax on stock buybacks.
Harris emphasized that no one earning less than $400,000 annually would pay more in taxes. Those earning $1 million or more would see their long-term capital gains tax rate increase from 20% to 28%.
“This approach strikes the right balance,” a statement from the Harris-Walz campaign reads.
“Trump’s economic agenda would ignite inflation and trigger a recession by mid-2025,” the statement adds. “We can’t go back to Trump’s failed approach.”
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