Put policy aside: Kamala Harris will win or lose based on the excitement factor
FOX NewsAug 24
Kamala Harris Proposes $50K Small Business Tax Deduction
Above: US Vice Pres. Kamala Harris speaks at a campaign rally at the Enmarket Arena Aug. 29, 2024 in Savannah, Georgia. Image copyright: Win McNamee/Staff/Getty Images News via Getty Images
The Facts
Democratic presidential nominee Kamala Harris proposed on Wednesday that the small business tax credit be expanded tenfold to $50K, with the aim of encouraging entrepreneurship in the US.
Speaking in New Hampshire, Harris proposed letting new small businesses allocate the tax deduction over many years or claim the $50K cut when they become profitable.
The Spin
Democratic narrative
Kamala Harris faces a tough challenge in winning over small business owners, who mostly lean toward supporting another Trump administration. In that context, her decision to champion tax breaks benefiting small businesses is bold, as is her promise to cut red tape. By addressing these concerns, Harris can appeal to entrepreneurs who feel overlooked.
Republican narrative
Kamala Harris' promised tax plan for small businesses comes against the backdrop of another proposal to hike corporate tax, which could have significant negative effects on small businesses besides the broader economy. Small businesses that rely on larger corporations could be badly hit. In contrast, Trump's proposed tax relief could boost earnings, making Harris's plan appear detrimental by comparison.