Harris Plans Major Expansion of Startup Tax Deductions

Vice President Kamala Harris is set to announce a significant expansion of federal tax incentives for small business startup expenses during a campaign speech in New Hampshire. The proposal aims to increase the tax deduction for new small businesses from $5,000 to $50,000, covering the average $40,000 cost to start a business. New businesses would also be allowed to claim the deduction once they turn a profit. These measures are part of a broader plan to stimulate 25 million new small business applications over her potential four-year presidency.

Harris' plan also includes the introduction of a standard deduction for small businesses to simplify tax filing and efforts to ease occupational licensing requirements across state lines. Additionally, she aims to incentivize local governments to reduce regulatory burdens and plans to allocate one-third of federal contract dollars to small businesses. Other elements of her "opportunity economy" proposal feature an expanded child tax credit for new parents, $25,000 in down payment assistance for first-time homebuyers, and tools to combat price gouging by large corporations. The proposed changes would require congressional approval.