Vice President Kamala Harris is set to unveil a major tax break initiative targeting new small businesses ahead of the 2024 election, marking a significant political move in her campaign as she seeks to take on former President Donald Trump. Donald Trump on the economic policy front.
What happenedHarris plans to introduce a tax deduction of up to $50,000, a substantial increase from the current $5,000, aimed at supporting middle-class Americans. This proposal is part of her broader economic strategy as a Democratic presidential candidate, Reuters reported.
The announcement will take place in New Hampshire.
According to the report, a Harris campaign official, who spoke on condition of anonymity, said the average cost of starting a new business is around $40,000. The proposal also includes a standardized tax deduction for small businesses and measures to streamline obtaining occupational licenses nationwide.
Additionally, the plan includes a small business expansion fund that will help community banks cover interest costs. The United States has about 33 million small businesses, which employ about 46% of private-sector workers and contribute 70% of net new jobs since 2019, according to the Small Business Administration.
Harris's economic agenda, which also includes increased federal funding for child care and other social programs, may face opposition from corporations and Congress. Similar proposals from the president Joe Biden have been previously rejected.
See also: Kamala Harris' Democratic supporters are in 'total denial' about unrealized capital gains tax, Pierre Ferragu claims, warning that 'Democrats have become the bad guys'
During her first major economic address last month, Harris pledged to cut taxes for most Americans, ban “price gouging” by grocery stores and increase the supply of affordable housing. She aims to secure 25 million small business applications in her first term, surpassing Biden’s 19 million.
Republican Advisors Kevin Hassett and Stephen Moore Harris argues that Harris' proposals could increase inflation and harm the economy. Harris and Trump will debate on September 10, focusing on economic issues.
Harris's official campaign team did not immediately respond to Gasoline poweredRequest for comments from.
Why is it important?Harris' new tax-break proposal is part of a broader economic strategy that has been unfolding in recent months. In her recent campaign ad, Harris directly criticized Trump's economic policies and highlighted her commitment to middle-class Americans.
Additionally, Harris's tax plan targeting the ultra-rich has caused a stir in Silicon Valley, signaling her broader strategy to address income inequality.
His housing plan, which includes tax incentives and the use of federal lands, has also come under scrutiny, with real estate experts analyzing its potential impact on the market.
Harris’ proposal to end taxes on tip income, which she announced at a rally in Las Vegas, also mirrors a similar idea floated by Trump this year. The move has sparked debate across the political spectrum, especially in states with high numbers of tipped workers.
Read next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
Market news and data provided by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.