Sen. Kamala Harris is set to unveil a new policy proposal Wednesday that would give a $50,000 tax credit to small businesses looking to start up their businesses.
A centerpiece of her new plan is the small business tax credit currently in the tax law, which allows aspiring entrepreneurs to deduct up to $5,000 for start-up expenses and other costs.
Harris’ proposal would increase that by 10 times and is due to be formally unveiled on Wednesday, when the vice president is expected to further outline his economic vision during a stop in Portsmouth, New Hampshire.
She will also announce an overall goal to encourage 25 million new small business applications over the next four years.
Harris is also expected to propose additional measures on Wednesday, including reducing red tape for small businesses. Tomorrow’s announcement comes ahead of a debate next week with former President Donald Trump, where economic worries are likely to be a top focus.
“One of my single priorities is investing in and growing small businesses,” Harris said during a campaign rally last week.
The Harris campaign’s recent efforts have been clearly aimed at appealing to pro-business voters, as she has sought to work with small businesses while at times attacking big corporations.
“We will continue to build what I call an opportunity economy, ensuring that every American has the opportunity to buy a home, start a business, build generational wealth and have a future that matches their dreams, ambitions and aspirations,” Harris added Monday during a Labor Day visit to Pittsburgh.
Potential for widespread support
Meanwhile, Donald Trump has often cited his business record as president as a reason for voters to choose him, and has accused Harris of a devastating blow to small businesses if she takes office, even going so far as to call her “Comrade Kamala” in recent weeks.
But the Harris/Waltz campaign is seeking to counter those accusations with a second economic policy plan, following a cost-of-living plan released last month aimed at improving housing, grocery store affordability and expanding the child tax credit.
But this week’s focus on small businesses and entrepreneurs could appeal to millions of potential voters.
Small business startups have been on the rise in recent years, according to the Global Entrepreneurship Monitor, which found that in 2022, about 20% of U.S. adults were in the process of starting a business or had started one within the past three and a half years, the highest figure since the survey began in 1999.
The story continues
The Biden administration has frequently touted the increase in small business activity since the pandemic ended, noting that there have been about 19 million new small business applications during its term so far.
While Harris aims to go further, other measures of entrepreneurial spirit are more mixed: The NFIB Small Business Optimism Index rose to 93.7 in July but remains below its 50-year average of 98.
Meanwhile, the Harris/Waltz proposal this week is also expected to include new rules that are said to make it easier to start a business. The proposal to be released also includes how to claim these new deductions to maximize your tax benefits. Plans are also in the works to cut some of the paperwork required for things like small business licenses.
Focus on small businesses rather than large corporations
Harris’ plan this week could also be a selling point among key donors, particularly some in Silicon Valley, who are focusing on “small tech” startups rather than giant corporations like Meta ( META ) and Alphabet ( GOOG ), which have gradually lost public support in recent years amid increased scrutiny from antitrust regulators in Washington.
Similarly, Harris has sought in recent weeks to position herself as a ally of small businesses and, somewhat, an enemy of large corporations.
The pricing plan, announced last month, focused on Democrats’ accusations that grocery store owners and business landlords are “price gouging” their customers. Harris has laid out a detailed plan to crack down on their behavior.
Also this week, the Harris campaign released a new ad that focuses on the economy, contrasting Harris’ economic plans with those of Trump, specifically focusing on Trump’s cozy relationship with business and his focus on, as the ad’s narrator puts it, “tax cuts for corporations.”
Trump has frequently discussed lowering the federal corporate tax rate from the current 21% to 15% to 20%. Harris supports a plan to raise that rate to 28%.
Meanwhile, there’s at least one big company Harris is trying to build a friendship with: McDonald’s (MCD). Harris often talks about working at the chain during summers in college, and both she and Trump want to be associated with the brand, which the company says nearly 9 in 10 Americans eat at least once a year.
Also likely to be announced in the coming weeks are Kamala Harris’ plans for a “care economy” on issues like child care and paid family leave. These have long been priorities for the vice president, and her campaign has signaled that these plans, too, could be unveiled soon.
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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