Sep 24, 2024 - Politics & Policy

Scoop: Harris tax platform gets battleground boost

Stephen Neukam

U.S. Sen. Kamala Harris (D-CA) (L) and U.S. Rep. and U.S. Senate candidate Jacky Rosen (D-NV) laugh at DW Bistro as Harris campaigns for Nevada Democratic candidates on the final day of in-person early voting in Nevada on November 02, 2018 in Las Vegas, Nevada — Then-U.S. Sen. Kamala Harris (D-CA) (L) and then-U.S. Rep. Jacky Rosen (D-NV) on Nov. 02, 2018 in Las Vegas. (Photo by Ethan Miller/Getty Images)

Two Senate Democrats waging competitive re-election campaigns in presidential battlegrounds will introduce a bill mirroring Vice President Harris' proposal to expand a tax break for creating a small business, Axios has learned.

Why it matters: Sens. Jacky Rosen (D-Nevada) and Tammy Baldwin's (D-Wisc.) embrace of Harris' economic policies as they fight their own campaign battles signals Democrats are confident they've landed on an economic message that can woo middle class voters.

Rosen and Baldwin will introduce a bill Wednesday that would allow a tax write off of up to to $50,000 for small business startups.

The big picture: Rosen and Baldwin will join Sen. Jeanne Shaheen (D-N.H.) in introducing the measure, which mirrors a policy proposal Harris unveiled earlier this month.

Rosen and Baldwin are both running in races that could be pivotal to determining whether Democrats retain their Senate majority.
New business owners can currently only write off up to $5,000 in startup costs, but a recent survey found that they spend around $40,000 to start a business.

Zoom out: Harris' economic platform is starting to emerge, and support from Senate Democrats would be critical to enacting it.

Washington is bracing for a major debate over tax policy in 2025 when Trump-era tax cuts are set to expire, with the outcome hinging largely on which party controls the White House and each chamber of Congress.

What they're saying: Rosen called the proposal a "common sense step," arguing the landscape for prospective entrepreneurs is getting "harder and more expensive."

Baldwin said it is lawmakers' job to "break down the barriers" aspiring business owners face.
Shaheen said "allowing small businesses to deduct more of their startup expenses will help support the growth of the 19 million new businesses formed during the Biden-Harris administration."

Go deeper: Harris, Trump tax-cut promises make 2024 a season of giving

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Scoop: Harris tax platform gets battleground boost

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