WASHINGTON (AP) — V.P. Kamala Harris President Trump is scheduled to propose on Wednesday to increase federal tax incentives for small business start-up costs tenfold, from $5,000 to $50,000, in hopes of spurring a record 25 million new small business applications over his four-year term if he wins the 2019 presidential election. November.
She is expected to announce the plan during a campaign rally in the Portsmouth, New Hampshire, area, a rare development outside the Midwest and Sun Belt battlegrounds that have been the Democratic candidate’s focus in his race against the Republican former president. Donald Trump.
A Harris campaign official, who spoke on condition of anonymity to discuss the unpublished policy proposal, said Tuesday that the changes would cover the $40,000 it costs on average to start a business. The proposal would maximize the tax cut by not allowing new businesses to claim the deduction until they make their first profit.
Any such changes would likely require congressional approval, but a set of tax cuts passed under the Trump administration is set to expire at the end of next year, potentially setting the stage for lawmakers to consider new tax policy. The proposal could help Harris demonstrate her support for entrepreneurs, even as she calls for higher corporate tax rates.
Since the Presidency Joe Biden Dropped I endorsed Harris for reelection. In July, the vice president said, Blue Wall Michigan, Wisconsin and Pennsylvania have been central to Democratic campaigns that have won the White House in recent decades.
She has also made frequent visits to Arizona, Nevada and Georgia, all states Biden won narrowly in 2020, and North Carolina, where she is still hoping to wrest support from Trump, even though the state last voted Democrat for president in 2008. Biden won New Hampshire by 7 percentage points in 2020, but Trump came very close to winning in 2016 against Hillary Clinton.
“New Hampshire’s cost of living is through the roof, our energy bills are the highest in the nation and our housing market is the most unaffordable in history,” Trump wrote on his social media account last week.
Harris’ team says that if she wins the presidential election, she could secure 25 million new business applications over four years, which would exceed the roughly 19 million applications since Biden took office. And it’s millions more than the previous four years of the Trump administration. The vice president’s goal would set a new record for new small business applications, though the record only goes back about two decades.
Although business applications don’t necessarily lead to the creation of actual small businesses, Harris’ plan could prevent new small businesses that do get created from taking on more debt, which could lead to their success in an era of high interest rates.
In the weeks since Harris became the top Democratic candidate, she has offered relatively few major policy proposals. Political balance Between injecting new energy into the campaign and continuing to support many of the Biden administration’s proposals that he helped advance as vice president.
Harris’ small business plan follows an inflation-fighting proposal unveiled last month. Efforts to lower food pricesand encourage homeownership with tax breaks and other incentives. The vice president has also proposed eliminating the federal tax on tips for service industry workers, an idea first floated by Trump.
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The plan she will unveil Wednesday also calls for creating a standard deduction to help small business owners save time on filing taxes and making it easier to obtain occupational licenses, allowing people to work across state lines and businesses to expand into new states. Harris also wants to offer federal incentives to state and local governments to ease regulations.
To encourage business investment outside urban and suburban centers, Harris has pledged to create a Small Business Expansion Fund that would allow local banks and federal agencies to cover interest rates while small businesses expand and create jobs. Her team says such efforts would be especially focused on areas that have traditionally seen little investment.