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KEY TAKEAWAYS
- In a speech in New Hampshire this week, Vice President Kamala Harris said she would increase the amount small businesses can deduct from taxes by tenfold.
- The Democratic presidential candidate also said she plans to increase capital gains taxes to 28%, unlike the 39.6% proposed by Biden.
- Harris also reiterated her support for a billionaire minimum tax.
Vice President Kamala Harris provided additional insights into her tax plans on the campaign trail this week.
During a speech in New Hampshire, the Democratic presidential candidate laid out plans to give tax breaks to small businesses and clarified her position on long-term capital gains taxes. She also reiterated her support for a billionaire minimum tax.
Plans To Give Tax Breaks To Small Businesses
Harris outlined a plan to allow new businesses to deduct up to $50,000 in start-up costs. Currently, Internal Revenue Service rules show start-ups can generally deduct far less—up to $5,000 in start-up costs and up to $5,000 in organizational costs.
Harris’ proposal to support small businesses also included plans to help existing small businesses by providing more low- and no-interest loans to those wanting to expand. Her plan will also ease regulations and simplify taxes by creating a standard deduction similar to how individual taxes are typically filed.
Taxing Millionaires and Billionaires
Harris also said she supports increased tax rates for millionaires and billionaires, a topic her predecessor, President Joe Biden, also campaigned on.
Harris outlined a plan to increase the tax rate on long-term capital gains for those who make $1 million or more to 28%. Currently, the highest capital gains rate is 20% and applies to consumers who make around $500,000 a year.
This separates her campaign from Biden’s—he proposed a tax rate of 39.6% for those who make $1 million or more.
Recently, Harris has been criticized for backing Biden’s proposed “billionaire tax.” This would apply a 25% minimum tax on the unrealized gains of people who own $100 million in assets or more. Critics, such as the Libertarian Cato Institute, say that the wealth tax would be “economically destructive.”
While she didn’t get into specific numbers, she did mention she would “support a billionaire minimum tax” to “ensure that the wealthy and big corporations pay their fair share.” She did, however, note that as president, she would push to “tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses.”