The Harris plan, expected to be unveiled during a campaign stop in New Hampshire, would up the current $5,000 tax deduction for small businesses and their startup expenses to $50,000.
The assessment was based in part on a provision from a 2010 federal law, the Small Business Job Creation Act, which upped the deduction of business expenditures for startups from $5,000 to $10,000, amounting to a total cost of $230 million over a decade.Garrett Watson, a senior policy analyst at the nonpartisan Tax Foundation, told The Post that the plan would roughly cost $20 billion over the next 10 years.
The plan would benefit some business, Goldwein noted, but “as a practical matter, a lot of businesses are not going to be able to deduct that much in the first year.”Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, said “as a practical matter, a lot of businesses are not going to be able to deduct that much in the first year.
“As a whole, the Harris tax plan will raise taxes on small and family businesses by letting top individual tax rates return to 39.6%,” he said, “and will increase other business and investment taxes to some of the highest tax rates in the developed world.” Antoni called the Harris proposal “a classic case of the left hand not knowing what the right hand is doing.”, higher income taxes, and higher taxes on investment. If she wanted to reduce taxes on small businesses, she wouldn’t be pushing for more taxes instead,” he said.