Harris unveils new tax proposals for small businesses

Vice President Kamala Harris unveiled new tax proposals for small businesses on Tuesday, which she is expected to publicly announce during her campaign speech in New Hampshire on Wednesday.

The proposal would increase the federal small business tax deduction tenfold, from $5,000 to $50,000, which the campaign says would help reduce the roughly $40,000 financial burden of starting a new business. The proposal would also allow small businesses to wait until they are profitable to claim the deduction, meaning they could use it piecemeal to save more later when they are making more money.

Harris is also expected to unveil her goal Tuesday to increase the number of new applications for small business credits, from 19 million under the Biden administration to 25 million under a possible Harris-Walz administration.

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Vice President Kamala Harris speaks about her policy agenda, including improving the cost of living for all Americans, at the Hendrick Center For Automotive Excellence on August 16, 2024 in Raleigh, North Carolina. (Grant Baldwin/Getty Images)

Other elements of the proposal include encouraging state and local governments to minimize red tape associated with their business regulations and reduce barriers to obtaining professional licenses. Harris, meanwhile, has pledged to launch a small business expansion fund to help lenders focused on low-income areas cover the interest costs of small businesses looking to relocate or create jobs, particularly in areas that have historically received less investment.

Conservative economists oppose Harris' new tax proposals, saying he wants to simultaneously give corporations bigger tax deductions while raising their tax rates.

“The left hand doesn't know what the right hand is doing,” says EJ Antoni, an economist at the Heritage Foundation. “It's just inconsistent.”

Fox News spoke with several Philadelphia residents about the current state of the economy.

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Fox News Digital reached out to Harris’ campaign for comment on the new tax bill, the specific details of which remain unknown, and was referred to a statement from former 2020 Biden campaign adviser Rhett Buttle. “It’s at the core of her belief,” Buttle said. “She believes that small businesses are part of what creates a strong middle class and helps people build wealth in this country.”

Tobin Marcus, director of U.S. policy at Wolfe Research and a former economic adviser to Vice President Joe Biden, told The Washington Post that politically, it makes sense for Harris to look at plans to support small businesses and entrepreneurs. “But in practice, federal policies targeted to help small businesses tend to be pretty limited,” he said.

The Harris-Walz campaign received an “F” grade this week from the Education Investment Coalition for their joint record on school choice. (Getty Images)

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In a statement released Sunday, Trump's campaign told voters that if they wanted more money in their pockets, “the only option is to vote for President Trump.”