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Harris’ Plan For Small Businesses Shredded As Unworkable

Charlie Kirk Staff

09/07/2024

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Harris’ Plan For Small Businesses Shredded As Unworkable

Democrat presidential nominee and Vice President Kamala Harris has been smacked down on her plan to assist small businesses in getting started as part of her “Economic Opportunity” plan.

Last week she announced tax proposals last that are supposed to shrink the cost of a new business getting started. One of her main proposals was a significant increase in the standard tax deduction for small-business startup costs, which would be raised from $5,000 to $50,000.

“It’s essentially a tax cut for starting a small business,” she said during a speech. “We’re going to help more small businesses and innovators get off the ground.”

But she has also shown support for increasing the marginal tax rates which conservative economists say would cause more harm than the tax cut she is giving to the small businesses, Fox News reported.

“She wants to increase taxes on all kinds of income, on all classifications of income, so no matter how the small business is ultimately structured, they will still be paying more,” conservative economist E.J. Antoni said to Fox News Digital. “Now, is that going to be diminished by this increase in the tax deduction? Absolutely. But, then, why are you doing both? That doesn’t make any sense.”

“Harris wants to do the opposite [of Trump],” he said. “She wants to increase the deduction, but then increase the marginal tax rates.”

When Trump was president standard deductions were increased and marginal tax rates were cut. His plan also allowed small businesses to claim a deduction on “qualified business income.”

UBS Americas former chairman Robert Wolfe, who supports Harris said that the tax rate increase for individuals is only going to hit those making more than $400,000.

“We want small businesses being built,” he said. “And we know that the ramp-up phase takes time, and so the idea that we wouldn’t applaud small businesses and entrepreneurs getting tax credits doesn’t make sense to me.”

Grover M. Hermann Center for the Federal Budget at The Heritage Foundation Director Richard Stern said that small businesses can currently deduct a great deal of their starting expenses and the vice president’s plan would only affect costs incurred before a business is registered with the federal government, which he said tend to be minimal.

“Harris’ new tax deduction for small businesses isn’t a subsidy for starting a business per se,” the economist said.

“It’s only useful if you actually spend $50K on pre-business expenses. So, this is disproportionately a subsidy for larger starting businesses,” he said.

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Charlie Kirk is the Founder and President of Turning Point USA, a national student movement dedicated to empowering young people to promote the principles of free markets and limited government.

Charlie is also the host of “The Charlie Kirk Show” podcast, which regularly ranks among the top-10 news shows on Apple podcast news charts, and is the host of the nationally syndicated daily radio show on the Salem Radio Network live from 12 - 3 PM ET.
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