Kamala Harris Proposes $50K Small Business Tax Deduction
The Facts
Democratic presidential nominee Kamala Harris proposed on Wednesday that the small business tax credit be expanded tenfold to $50K, with the aim of encouraging entrepreneurship in the US.
Speaking in New Hampshire, Harris proposed letting new small businesses allocate the tax deduction over many years or claim the $50K cut when they become profitable.
The Spin
Democratic narrative
Kamala Harris faces a tough challenge in winning over small business owners, who mostly lean toward supporting another Trump administration. In that context, her decision to champion tax breaks benefiting small businesses is bold, as is her promise to cut red tape. By addressing these concerns, Harris can appeal to entrepreneurs who feel overlooked.
Republican narrative
Kamala Harris' promised tax plan for small businesses comes against the backdrop of another proposal to hike corporate tax, which could have significant negative effects on small businesses besides the broader economy. Small businesses that rely on larger corporations could be badly hit. In contrast, Trump's proposed tax relief could boost earnings, making Harris's plan appear detrimental by comparison.
