Vice President Kamala Harris is set to unveil a major economic initiative on Wednesday, promising a dramatic expansion of the tax credit for new small businesses. This bold move is part of her broader economic strategy aimed at aiding working- and middle-class Americans while also building on President Biden’s legacy.
The new plan, which Harris will announce, includes a ten-fold increase in the tax deduction available to new small business owners. Currently, entrepreneurs can claim a $5,000 deduction when starting a business. Under the proposed plan, this amount will rise to $50,000. The proposal also introduces a flexible approach allowing new businesses to defer claiming the deduction until they become profitable, potentially easing the initial financial burden for startups.
Here is what else you need to know
In addition to the enhanced tax benefits, Harris’s proposal aims to streamline the process for new businesses. This includes the development of a standard deduction for small businesses and efforts to reduce bureaucratic obstacles related to occupational licenses, particularly those that affect businesses operating across state lines.
Harris is also expected to announce a commitment to directing one-third of federal contract dollars to small businesses, particularly those in rural and underserved areas. This initiative is designed to expand opportunities for small businesses and support local economies.
The Vice President’s ambitious plan aims to surpass the record of 19 million new small business applications achieved under President Biden, setting a target of 25 million new applications during Harris’s first term.
This economic proposal reflects Harris’s dual strategy of defending the achievements of the current administration while setting a forward-looking agenda to support the growth of small businesses across the nation.
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