Vice President Kamala Harris is planning to introduce a significant proposal aiming to boost small business startup activities by elevating federal tax incentives from $5,000 to $50,000. Focusing on generating a potential 25 million new small business applications over a four-year term, the plan is set to be revealed during a campaign event in the Portsmouth area of New Hampshire. The initiative seeks to cover the average $40,000 startup cost for new businesses, offering them the flexibility to claim the deduction once they become profitable, thereby reducing their tax burden.
The proposed changes would necessitate congressional approval, potentially capitalizing on the expiration of Trump-era tax cuts by the end of the following year. Harris aims to demonstrate her support for entrepreneurs by advocating for both increased tax incentives for small businesses and higher corporate tax rates. Since receiving Joe Biden’s endorsement in July and subsequently focusing on key battleground states like Michigan, Wisconsin, Pennsylvania, Arizona, Nevada, and Georgia, Harris is making a strategic push to broaden her campaign reach even further.
The plan includes not only financial support but also streamlining processes for small businesses through initiatives such as a standard deduction to simplify tax filing, facilitating the acquisition of occupational licenses to enable interstate operations, and offering federal incentives to encourage state and local governments to relax regulations. Harris also pledges to launch a small business expansion fund aimed at encouraging growth in underserved areas by covering interest costs while businesses expand or create jobs. By advocating for policies that lower financial barriers and promote business expansion beyond major urban centers, Harris seeks to address economic disparities and foster widespread entrepreneurship.
