Vice President Kamala Harris on Tuesday unveiled a new tax plan for small businesses that she plans to unveil during a campaign speech in New Hampshire on Wednesday.
The proposal seeks to increase the federal small business tax credit tenfold, from $5,000 to $50,000, which the campaign suggests would help alleviate the burden of the roughly $40,000 costs associated with starting a new business. The proposal would also allow small businesses to wait to apply for the credit until they're in the black, meaning they could use the credit in increments in the future when profits increase, saving them more money.
Harris is also set to announce a goal on Tuesday for increasing new applications from small businesses. She wants to increase that from 19 million under the Biden administration to 25 million under a Harris-Waltz administration.
CNBC clashes with Harris campaign economic adviser over unrealized profits tax proposal: “Unconstitutional”
Vice President Kamala Harris speaks about her policy platform, which includes improving the cost of living for Americans, at the Hendrick Center for Automotive Excellence in Raleigh, North Carolina, on August 16, 2024. (Grant Baldwin/Getty Images)
The proposal includes encouraging state and local governments to minimize red tape in regulating business and reducing barriers to occupational licensing, while Harris pledged to create a Small Business Expansion Fund to help lenders focused on low-income areas cover interest costs for small businesses looking to relocate or create jobs, especially in areas that have historically seen little investment.
Conservative economists have criticized Harris' new tax proposals, arguing that she wants to give big tax credits to businesses while also raising tax rates.
“The left hand doesn't know what the right hand is doing,” says Heritage Foundation economist EJ Antoni. “It's a total paradox.”
Fox News spoke with several Philadelphia residents about their current economic situation.
Ahead of policy speech, Harris' understanding of inflation and attacks on corporations are criticized as “insane”
Fox News Digital reached out to Harris' campaign for comment on the new tax proposal package, but specifics have yet to be released. They were then directed to a statement from former Biden 2020 campaign adviser Rhett Battle. “This is at the core of her beliefs,” Battle said. “She believes that small business is what creates a strong middle class in this country and helps people build wealth.”
Tobin Marcus, head of U.S. policy and politics at Wolf Research and a former economic adviser to then-Vice President Joe Biden. He told The Washington Post It makes political sense for Harris to lean toward plans to help small businesses and entrepreneurs, “but in reality, targeted federal policies to help small businesses tend to be pretty small-scale,” she said.
The Harris-Waltz campaign received an “F” grade this week from the Education Investment Coalition for their joint record on school choice. (Getty Images)
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Meanwhile, the Trump campaign said in a statement on Sunday that voters' “only choice is to vote for President Trump” if they want more money.
