Published 16:50 IST, September 4th 2024
Harris Aims to Boost Small Business with Sweeping New Economic Proposal
The new plan, which Harris will announce, includes a ten-fold increase in the tax deduction available to new small business owners.
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Vice President Kamala Harris is set to unveil a major economic initiative on Wednesday, promising a dramatic expansion of the tax credit for new small businesses. This bold move is part of her broader economic strategy aimed at aiding working- and middle-class Americans while also building on President Biden’s legacy.
The new plan, which Harris will announce, includes a ten-fold increase in the tax deduction available to new small business owners. Currently, entrepreneurs can claim a $5,000 deduction when starting a business. Under the proposed plan, this amount will rise to $50,000. The proposal also introduces a flexible approach allowing new businesses to defer claiming the deduction until they become profitable, potentially easing the initial financial burden for startups.
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Here is what else you need to know
In addition to the enhanced tax benefits, Harris's proposal aims to streamline the process for new businesses. This includes the development of a standard deduction for small businesses and efforts to reduce bureaucratic obstacles related to occupational licenses, particularly those that affect businesses operating across state lines.
Harris is also expected to announce a commitment to directing one-third of federal contract dollars to small businesses, particularly those in rural and underserved areas. This initiative is designed to expand opportunities for small businesses and support local economies.
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The Vice President’s ambitious plan aims to surpass the record of 19 million new small business applications achieved under President Biden, setting a target of 25 million new applications during Harris’s first term.
This economic proposal reflects Harris’s dual strategy of defending the achievements of the current administration while setting a forward-looking agenda to support the growth of small businesses across the nation.
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16:50 IST, September 4th 2024