Vice President Kamala Harris, now the Democratic presidential nominee, announced a series of policy initiatives on Wednesday aimed at bolstering small business creation across the United States. Speaking from Throwback Brewery in Portsmouth, New Hampshire, Harris outlined her vision to significantly enhance support for startups and reduce bureaucratic hurdles for existing businesses.
One of the key elements of her proposal includes a tenfold increase in the small business tax credit, boosting it from $5,000 to $50,000. This substantial rise aims to offset the average launch cost of $40,000 for new businesses. Harris highlighted her ambition to see “25 million new small business applications” during her first term, a notable increase from the 19 million applications filed under the Biden-Harris administration.
“As President, one of my highest priorities will be to strengthen America’s small businesses,” Harris asserted. She emphasized her commitment to helping entrepreneurs and innovators thrive, stating, “So, first we’re gonna help more small businesses and innovators get off the ground.
Harris also proposed cutting the “red tape that can make starting and growing a small business more difficult than it needs to be,” aiming to simplify processes that currently hinder business expansion.
In a significant departure from current fiscal policy under President Biden, Harris proposed a capital gains tax rate of 28% for individuals earning over $1 million. This rate is lower than the 39.6% suggested in Biden’s FY2025 budget proposal and is a reduction from the current rate of 23.8%. She argued that encouraging investment through more favorable tax rates leads to “broad-based economic growth” and job creation.
The campaign official noted that Harris’ policies are designed to ease the financial burdens on founders and foster an environment conducive to business success. The potential reforms include a new provision allowing new businesses to delay claiming their tax credit until they are profitable, reducing their initial tax liability.
Further, Harris plans to streamline the tax-filing process for small businesses and make it easier to obtain necessary occupational licenses. She also intends to incentivize state and local governments to relax stringent regulations that can impede small business growth.
“We will make it cheaper and easier for small businesses to file their taxes,” Harris elaborated, focusing on reducing bureaucratic obstacles to enhance the overall economic landscape.
These initiatives form part of a broader economic agenda that Harris has been promoting, which includes tax reductions for most Americans, efforts to increase affordable housing, and a crackdown on “price gouging” in the food industry. These policies underscore her belief that the nation’s 33 million small businesses are the backbone of the U.S. economy, employing the vast majority of private-sector workers, generating trillions in annual revenue, and driving economic growth and innovation.
