Here’s what you need to know about Kamala Harris’ plans for small businesses if she becomes President:

1. Big Boost in Tax Deductions:

Kamala Harris is proposing to raise the tax deduction for new small businesses from $5,000 to $50,000. This means you can write off up to $50,000 of your startup costs, making it way easier to get your biz off the ground. Currently, you can only deduct $5,000 and then have to spread out the remaining startup costs over 15 years. This includes things like ads, training costs, and travel expenses.

2. Flexible Deduction Options:

You can spread this proposed deduction over several years or use the full $50,000 deduction in one go when you start making a profit.

3. Easier Tax Filing:

Harris wants to make tax filing for businesses as straightforward as possible, kind of like how individuals can easily file for standard deductions.

4. Impact on New Businesses:

Harris is targeting 25 million new small business applications during her first term. So far, there have been 19 million new applications since President Biden took office, indicating a strong interest in starting new businesses.

5. Broader Economic Plans:

Beyond the tax deductions, Harris is focusing on broader economic support for the middle class. This includes expanding the child tax credit to up to $6,000 for newborns and $3,600 per child for middle- and lower-income families. She’s also looking to introduce tax cuts for the middle class, address high grocery prices, and provide up to $25,000 in down payment aid for first-time homebuyers.

We hope this helps you get a clearer picture of what Kamala Harris’ presidency might mean for your small business. Before you decide how you allocate startup costs, hit us up for a no-pressure chat on what works best for your small business: https://www.hanaimarketing.com/contact

Disclosure: This summary is for informational purposes only and is not written by a lawyer or licensed CPA. For professional advice tailored to your specific situation, please consult a qualified expert.