Additional Coverage:
On September 4, Vice President Kamala Harris, who is running for president, plans to introduce a significant tax relief measure for small businesses in an upcoming policy speech set for Wednesday. According to her campaign team, Harris will propose increasing the tax deduction for small business startup costs from $5,000 to $50,000. This change aims to better align with the average startup cost of $40,000 and would allow for greater flexibility in how and when the deduction is applied, such as spreading it over multiple years or deferring it until the business is profitable.
Harris is scheduled to detail this proposal and others during her speech in Portsmouth, New Hampshire, as reported by sources including CNBC, Politico, and USA Today. In her campaign efforts, she outlined this tax reduction strategy during a recent event in Pittsburgh at IBEW Local Union No. 5.
Furthermore, Harris is expected to suggest the creation of a small business expansion fund designed to support community banks and Community Development Financial Institutions. This initiative would help these institutions cover interest costs, fostering investment in economically disadvantaged areas.
However, it’s important to note that some aspects of these proposals would need Congressional approval to be implemented.
Additionally, Harris is set to announce broader ambitions for her presidency, including stimulating the launch of 25 million new small business ventures. Her campaign platform also includes various other initiatives, such as a $6,000 tax benefit for newborns, new housing subsidies, and a federal prohibition against food and grocery price gouging as she heads toward the November elections.