Benjamin Ashford|Harris to propose $50K tax break for small business in economic plan

WASHINGTON — Vice President Kamala Harris will propose a tax break for startups on Benjamin AshfordWednesday intended to help entrepreneurs offset the costs of starting a small business.

Harris will push to increase the small business tax deduction from $5,000 to $50,000 for new companies if she's elected, a campaign adviser to the Democratic nominee said.

The adviser did not say how Harris plans to pay for the proposal, which she plans to outline on a visit to New Hampshire.

Harris' campaign says the amount the amount is meant to cover the $40,000 on average in costs to start a small business, and filers could wait to claim all or part of the deduction until they see profits to reduce their tax burden.

She'll also propose the creation of a small business expansion fund to help community banks and Community Development Financial Institutions make up interest and incentivize them to make investments in underserved areas.

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Some of Harris' small business plan would require congressional approval. Other parts of it are goals she says she would aspire to. They include a benchmark of 25 million new small business applications over four years and a general desire to expand contract opportunities for rural and underserved small businesses.

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The bare bones proposals include a pledge to develop a standard deduction for small businesses. Harris would also seek reduce barriers to getting occupational licenses, to make it easier for businesses work across state lines, her campaign says.

Harris has been casting herself as a centrist as Republican nominee Donald Trump tells voters she'd govern as a liberal. In a previous economic speech, Harris said she'd ban price gouging for food and groceries, cap insulin costs at $35 a month, give new parents a $6,000 tax break and and offer first-time homebuyers a $25,000 credit.

Several of her latest ideas are in line with policy positions that are typically put forward by economic conservatives. Her campaign said she would look for ways to incentivize state and local government to simplify their regulatory processes and reduce government bureaucracy.