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Vice President Kamala Harris is launching a new economic initiative aimed at fostering the growth of small businesses. Announcing her plan on Wednesday, Harris has set an ambitious target of generating 25 million new business applications during her first term should she be elected president. This goal seeks to surpass the more than 18 million applications seen during the ongoing Biden-Harris tenure, amid what has been a surge in business applications following the year 2020.
Harris’s strategy includes sweeping proposals to cut down on bureaucratic hurdles and upfront costs that often deter new entrepreneurs. Key among her proposals is a significant increase in the tax deductions available to small businesses for initial expenses. While currently businesses can deduct up to $5,000, Harris proposes to boost this figure tenfold to $50,000, allowing firms to delay this deduction until they begin turning a profit.
Furthermore, Harris aims to simplify the overwhelming administrative procedures that small business owners commonly grapple with. Her plan includes incentives for local governments to streamline processes, establish a standard tax deduction for small companies, and ease restrictions on occupational licensing that can restrict business operations across state lines.
Beyond bureaucratic and financial adjustments, Harris is focused on injecting capital into small enterprises by ensuring that a third of federal contracting dollars are awarded to smaller businesses. She also advocates for support to community banks to assist them in managing interest costs for small business loans.
Harris has also reiterated her support for enhancing family financial support via tax credits. She advocates for restoring the expanded child tax credit to $3,600 and introducing a new $6,000 credit for families in the first year of a child’s life.
However, the feasibility of Harris’s ambitious proposals hinges significantly on the future composition of Congress. Previous attempts by President Biden to implement such fiscal changes faced obstacles in the Senate, suggesting potential challenges ahead for Harris’s plans should she reach the presidency.