Harris to propose $50,000 tax deduction for small business startup expenses, ahead of Trump debate

• Vice President Kamala Harris is planning to unveil a new proposal to provide small businesses a $50,000 tax deduction for startup expenses.
• The policy would be a tenfold expansion of the current $5,000 startup tax deduction.
• Donald Trump has attacked Harris' economic policy record and attempted to pitch himself as the candidate who would be better for business.

Vice President Kamala Harris on Wednesday will unveil a new proposal to provide small businesses with a $50,000 tax deduction for startup expenses, ten times the current $5,000 allowable deduction, according to a Harris campaign official who was granted anonymity to share details of a proposal that is not yet public.

Harris will roll out the new plan at a presidential campaign event in New Hampshire on Wednesday, part of her broader kick-off of the post-Labor Day two-month sprint to Election Day.

Under the proposal, new small businesses could spread the deduction out over several years, or delay claiming the $50,000 tax deduction until the company turned a profit.

The Internal Revenue Service has previously run into issues ensuring that its small business tax breaks end up in the right pockets, especially during the pandemic, when the agency flagged a spike in fraudulent claims.

The Harris campaign did not respond to a request for clarification about which startups and small businesses would be eligible for the tax deduction.

On Wednesday, Harris will also set a goal of collecting 25 million new small business applications in her first term if she is elected president. This would be six million more than the Biden administration has recorded so far.

The announcements give Harris ammunition for her upcoming Sept. 10 debate against Republican presidential nominee