Democratic presidential nominee and U.S. Vice President Kamala Harris delivers remarks at a campaign rally in Savannah, Georgia, U.S., August 29, 2024.
Elizabeth Frantz | Reuters
Vice President Kamala Harris on Wednesday will unveil a new proposal to provide small businesses with a $50,000 tax deduction for startup expenses, ten times the current $5,000 allowable deduction, according to a Harris campaign official who was granted anonymity to share details of a proposal that is not yet public.
Harris will roll out the new plan at a presidential campaign event in New Hampshire on Wednesday, part of her broader kick-off of the post-Labor Day two-month sprint to Election Day.
Under the proposal, new small businesses could spread the deduction out over several years, or delay claiming the $50,000 tax deduction until the company turned a profit.
The Internal Revenue Service has previously run into issues ensuring that its small business tax breaks end up in the right pockets, especially during the pandemic, when the agency flagged a spike in fraudulent claims.
The Harris campaign did not respond to a request for clarification about which startups and small businesses would be eligible for the tax deduction.
On Wednesday, Harris will also set a goal of collecting 25 million new small business applications in her first term if she is elected president. This would be six million more than the Biden administration has recorded so far.
The announcements give Harris ammunition for her upcoming Sept. 10 debate against Republican presidential nominee Donald Trump, hosted by ABC News. Trump has worked to position himself as the more pro-business candidate, while attacking Harris’ economic record.
The Harris campaign has been building the vice president’s economic platform at warp speed, since she emerged as the Democratic presidential nominee after President Joe Biden dropped out of the race on July 21.
As voters consistently rank high costs of living as their top election issue, Harris’ policy proposals so far have focused on the affordability of housing, groceries, prescription drugs, child care and healthcare.
Part of that pitch has included a federal ban on so-called “price gouging” in the food industry, implying that high food prices are a result of grocery companies artificially inflating prices.
That proposal has drawn backlash from the business community and some economists.
Meanwhile, Trump has long sold himself as a friendly face to big business. During his third presidential run, Trump is proposing to make his first-term tax cuts permanent, including a lower corporate tax rate.
“If you think things are expensive now, they will get 100 times WORSE if Kamala gets four years as President,” Trump wrote last week on his X account. “If you want more CASH and less TAX, VOTE TRUMP!!!”
By focusing on small businesses, Harris’ tax deduction proposal could help her thread the needle between rebutting Trump’s attacks, and keeping up her political crusade against corporate greed.
Beyond the campaign trail, questions linger about where the vice president would come down on business regulation if she were to win the White House.
Some of Harris’ supporters on Wall Street say they expect her to take a friendlier approach than Biden has to big business on issues like antitrust enforcement.
