Economic policies

Harris unveiled more of her economic policies yesterday. Catch up on her latest proposals

From CNN's Tami Luhby and Katie Lobosco

Vice President Kamala Harris is adding tax relief for small businesses to her economic policy platform aimed at helping middle-class and working Americans.

Harris unveiled Wednesday a proposal to massively increase the existing small business tax deduction for startup costs and cut the red tape that impedes small businesses’ formation and growth.

Her goal: 25 million new small business applications by the end of her first term, up from the record 19 million received under the Biden administration as of mid-August.

Harris on Wednesday also proposed raising the capital gains tax rate, though not by as much as President Joe Biden has called for.

The measures come three weeks after Harris released a four-part package aimed at making housing, groceries, child rearing and prescription drugs more affordable. Many of the proposals build upon efforts the Biden administration has already unveiled.

Here’s what we know about Harris’ economic proposals:

• Bigger tax deduction for small businesses: Harris proposed a 10-fold expansion to a tax deduction for new small businesses. Currently, small businesses are allowed to deduct up to $5,000 of eligible startup expenses in the year they begin to operate, according to the Congressional Research Service.
• Cut red tape for small businesses: Harris proposed measures aimed at making it easier for small business owners to operate. Creating a standard deduction for small businesses could make it easier for them to file taxes. Harris also wants to make it easier to do business across state lines and to ensure that one-third of federal contract dollars goes to small businesses.
• Higher taxes on the wealthy and corporations: Harris also said Wednesday that she would raise the long-term capital gains tax rate to 28%, up from the current 20%, for those who earn $1 million or more. Biden’s budget called for hiking the rate to 39.6% – the same rate levied on ordinary income – for high earners.
• Housing support: In August, Harris unveiled a multipart, four-year plan to address the nation’s affordable housing crisis. It includes providing up to $25,000 in down-payment support and a $10,000 tax credit for first-time homebuyers.
• Price gouging ban: Harris called in August for a federal ban on price gouging in an effort to lower grocery prices, though her campaign has released few details about the proposal. More than three dozen states have laws that prohibit price gouging during special circumstances, such as emergencies, disasters or market disruptions.