Kamala Harris Proposes $50K Small Business Tax Deduction
Democratic presidential nominee Kamala Harris proposed on Wednesday that the small business tax credit be expanded tenfold to $50K, with the aim of encouraging entrepreneurship in the US....
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Facts
- Democratic presidential nominee Kamala Harris proposed on Wednesday that the small business tax credit be expanded tenfold to $50K, with the aim of encouraging entrepreneurship in the US.[1]
- Speaking in New Hampshire, Harris proposed letting new small businesses allocate the tax deduction over many years or claim the $50K cut when they become profitable.[2]
- Emphasizing her plan to build an 'opportunity economy,' she promised to lower the cost of starting a small business, cut the red tape, and simplify the tax code.[3]
- Harris also claimed that her plan would ease the path for venture capital, back innovation hubs, and give small businesses far more federal contracts.[4]
- Harris didn't clarify what the change would cost, but her campaign launched an advertisement on Tuesday criticizing Donald Trump's proposed corporate tax cuts.[5]
- Last month, Harris proposed her first set of economic policies, which included new housing subsidies, a $6K child tax benefit, and a ban on price gouging in the food industry.[6]
Sources: [1]CBS, [2]Forbes, [3]Inc, [4]ABC News, [5]Washington Post and [6]Politico.
Narratives
- Democratic narrative, as provided by The Hill. Kamala Harris faces a tough challenge in winning over small business owners, who mostly lean toward supporting another Trump administration. In that context, her decision to champion tax breaks benefiting small businesses is bold, as is her promise to cut red tape. By addressing these concerns, Harris can appeal to entrepreneurs who feel overlooked.
- Republican narrative, as provided by World News. Kamala Harris' promised tax plan for small businesses comes against the backdrop of another proposal to hike corporate tax, which could have significant negative effects on small businesses besides the broader economy. Small businesses that rely on larger corporations could be badly hit. In contrast, Trump's proposed tax relief could boost earnings, making Harris's plan appear detrimental by comparison.
