Conservative economists are pouring cold water on Vice President Kamala Harris‘ new proposal aimed at reducing startup costs for new small businesses as part of her “Opportunity Economy” economic platform.
Harris unveiled new small-business tax proposals last week aimed at reducing the cost burden related to starting a new business. Among the proposals was 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,” the vice president said during a stump speech announcing the new proposal. “We’re going to help more small businesses and innovators get off the ground.”
Meanwhile, Harris has simultaneously expressed support for raising marginal tax rates for both corporations and individuals, which conservative economists argued would work to diminish the benefit received by the tenfold increase in the startup deduction.
“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 …