Harris readies aggressive tax relief boost for new small businesses

• Harris revealed an economic plan last month aimed at helping first-time homeowners and targeting price-gouging.

Zoom in: The latest proposal includes a tenfold increase in the tax deduction for starting a small business — from $5,000 to $50,000.

• In an effort to reduce taxes, new businesses will be allowed to wait to claim that deduction once they turn a profit.
• The proposal also includes measures to cut red tape by developing a standard deduction for small businesses and reducing barriers to getting occupational licenses across state lines.
• Harris is expected to pledge that one-third of federal contract dollars go to small businesses in her first term through the expansion of contract opportunities for rural and other underserved small businesses.

Zoom out: The goal is to beat Biden's record of 19 million new small business applications with a goal of 25 million in Harris' first term.

• The rising number of small business applications has been a point of pride for Biden as proof the economy was healthier than the public gave him credit for, Axios' Hans Nichols reports.

Where it stands: The Harris campaign did not provide a cost estimate for its proposal, which would need congressional approval.

What we're watching: Harris is expected to release details of the plan in a campaign speech in New Hampshire Wednesday.

Go deeper: Inside Harris' delicate balancing act on the economy

Editor's note: The headline of this story was corrected to show Harris is readying a tax relief boost (not a tax boost).