Harris' Small Business Economic Proposal Faces Criticism from Conservative Economists

Vice President Kamala Harris's new proposal aimed at reducing startup costs for small businesses is facing scrutiny from conservative economists, who argue that it would be diminished by her plans to raise taxes in other areas.

Vice President Kamala Harris has unveiled a new economic plan aimed at reducing the cost burden associated with starting a new business. Among the proposals is a substantial increase in the standard tax deduction for small business startup costs, from $5,000 to $50,000. "It’s essentially a tax cut for starting a small business," Harris said during a speech announcing the new proposal.

Conservative economists have expressed skepticism about the proposal, arguing that it would be offset by Harris's plans to raise marginal tax rates for both corporations and individuals. "She wants to increase taxes on all kinds of income, so no matter how the small business is structured, they will still be paying more," said economist E.J. Antoni.

Harris' Small Business Economic Proposal Faces Criticism from Conservative Economists

Under the Trump administration, standard deductions were increased while marginal tax rates were lowered. Antoni pointed out that this allowed small business owners to claim a deduction for their "qualified business income." Trump has proposed further tax cuts, including lowering the corporate tax rate from 21% to 15%.

Harris's economic strategy is part of President Biden's broader "Bidenomics" plan. Critics argue that Harris's proposal is inconsistent with Biden's goal of encouraging economic growth through tax cuts.

Harris' Small Business Economic Proposal Faces Criticism from Conservative Economists

Supporters of Harris argue that the increased tax deduction for small businesses is a necessary measure to support entrepreneurship and drive economic growth. They point to Harris's experience as a former CEO and her commitment to small businesses.

In addition to her small business tax proposals, Harris has also proposed increasing the capital gains tax rate to 33%. Biden reportedly wants to nearly double the current rate of 23.8%.

Harris' Small Business Economic Proposal Faces Criticism from Conservative Economists

The Harris campaign has not directly addressed the criticisms of her small business tax proposal. They have instead highlighted the support of small business owners for Harris's plan.

Harris's small business economic proposal has sparked debate among economists. Conservative economists argue that it would be diminished by her plans to raise taxes in other areas, while supporters argue that it is a necessary measure to support entrepreneurship and drive economic growth. The plan's ultimate impact will depend on its reception by Congress and the broader American public.

Harris' Small Business Economic Proposal Faces Criticism from Conservative Economists