Vice President Kamala Harris is set to unveil a major economic initiative on Wednesday, promising a significant expansion of the tax credit for new small businesses. The bold move is part of her broader economic strategy aimed at helping middle- and working-class Americans while building on President Biden’s legacy.
The new plan, which Harris will announce, includes a tenfold 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 increase to $50,000. The proposal also introduces a flexible approach that allows new businesses to defer claiming the deduction until they are profitable, which could ease the initial financial burden for startups.
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In addition to enhanced tax benefits, Harris’ 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 hurdles related to occupational licensing, particularly those affecting companies operating in other states.
Harris is also expected to announce a commitment to direct one-third of federal contract funding 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 19 million new small business applications achieved under President Biden, setting a goal of 25 million new applications during Harris’ first term.
The economic proposal reflects Harris’ dual strategy of defending the current administration’s accomplishments while setting a forward-looking agenda to support small business growth across the country.
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