Kamala Harris Proposes Increased Tax Deduction for Startups

Vice President Kamala Harris is set to announce a proposal to increase the small business tax deduction for startup costs from $5,000 to $50,000, a move aimed at stimulating entrepreneurship and contrasting her economic policies with those of Republican Donald Trump. This tenfold increase could potentially cost taxpayers around $20 billion over the next decade, as it allows new businesses to claim deductions until they are profitable. Harris's proposal aligns with previous Republican initiatives and seeks to appeal to voters concerned about the economy, pledging to create 25 million new small businesses in her first term. Additionally, her plan includes measures to streamline licensing processes and support community banks. Critics, including Trump’s economic advisors, argue that such tax breaks could exacerbate inflation and economic instability. The proposal will be revealed during a campaign event in New Hampshire, coinciding with Harris's broader economic agenda focused on supporting the middle class.