Sep 4, 2024
Fox Business PRAISES Harris' New Proposal
Vice President Kamala Harris is launching new proposals aimed to help small business owners.
- 12 minutes
Now I just want to press the point
when a political candidate comes up
with what I think is a good idea,
I have to call it a good idea and a $50,
000 tax cut for not tax cut,
but a tax credit for start ups or small
businesses coupled with less red tape.
[00:00:15]
I got to say that is a good idea
regardless of our other tax ideas.
Well, that may be a good idea.
It's hard to see how she's going
to move forward with it.
The people of Fox business
commending Kamala Harris's
[00:00:33]
recent proposals for small businesses.
That's what it sounds like.
That's what it sounds like.
In fact, Kamala Harris has proposed
a handful of new economic policies today.
And clearly, her effort in attempting
to help entrepreneurs and small businesses
is something that seems appealing
to individuals who typically would be very
[00:00:52]
critical of her and the Democratic Party.
So, look, the first wave of economic
policies were the most populist ones.
We've talked about them on the show.
We've also talked about whether we believe
she's actually going to fight for them
or accomplish them, but she did
have interesting proposals when it came
[00:01:07]
to first time homeowners or buyers.
How to assist in helping them
afford a home,
how to increase the inventory of homes
in the country which we desperately need.
But this announcement today
was more targeted toward business owners.
[00:01:22]
And we're not talking
about major corporations.
We're talking about efforts to help spur
the development of more small businesses,
which I think is an important effort to,
I think that there's been a lot done to
help incredibly profitable corporations,
[00:01:40]
especially multinational corporations.
I like the fact that she's actually
putting out a proposal that would help
small businesses, help people who want
to start a small business actually do so.
So here's what she said during an economic
speech in New Hampshire earlier today.
I want to see 25 million
new small business applications
[00:02:00]
by the end of my first term.
And to help achieve this.
We will lower the cost
of starting a new business.
So here's the thing.
On average, it costs about $40,000
to start a new business in America.
[00:02:15]
That is a great financial barrier
for a lot of folks,
and it can hold entrepreneurs back.
And the current tax deduction
for a startup is just $5,000.
Okay.
So then you got to make up
the delta there.
Got to figure out
how you're going to do that.
[00:02:31]
Not everyone has access
to that kind of wealth and capital.
So part of my plan is we will expand
the tax deduction for startups to $50,000.
It's essentially a tax cut
for starting a small business.
[00:02:49]
Second, my plan will help
existing small businesses grow.
We will provide low and no interest loans
to small businesses that want to expand.
And we will. And this is very important.
Cut the red tape that can make starting
and growing a small business
[00:03:08]
more difficult than it needs to be.
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[00:03:24]
Okay so look the details
here matter right.
So when she talks about cutting
red tape what does that mean.
What kind of red tape
are we talking about.
Obviously we do not have details on that.
So the vague statement about cutting
red tape raises some red flags for me
[00:03:41]
because I, again, would like her
to elaborate on that a little further.
But, you know, the tax deductions for
small businesses, that's a pretty big deal
because currently new small businesses,
you know, when they launch their startups,
they can usually enjoy
[00:03:57]
about $5,000 in tax deductions.
She is proposing $50,000
in tax deductions.
And so that's quite a bit of money.
But look,
we're talking about small businesses.
And the barrier to entry for
small businesses is incredibly high.
[00:04:13]
It's incredibly difficult.
That's the reason why we have more
and more concentration
of these mega corporations.
And so small businesses would be
good for consumers as well,
because it gives you more options
when it comes to goods and services.
[00:04:28]
So I like that she is focusing on that.
Whether or not the $50,000 tax
deduction is a good proposal,
I need to see more analysis on that.
I have no idea, to be honest.
But I should also note that Biden wanted
[00:04:44]
to, spur 19 million new businesses.
She has upped the game by saying she'd
like to spur 25 million new businesses.
And again, a lot of her proposals
are probably going to receive
some resistance in Congress.
[00:05:00]
So it really depends on the makeup
of Congress, whether or not she's going
to have majorities in the House and
the Senate, which seems somewhat unlikely,
to be honest with you.
But I'm curious what you think, John,
about what she's proposing here so far.
I'm glad you brought up that last point,
because the feasibility I want
[00:05:16]
to return to in the video that you played,
there was a little bit about that.
Yeah.
Some of these numbers are hard
for a person who doesn't like,
has never started a business.
And I think many people
probably watching can attest
this to the really like process.
Like you're going from 5000 to 50,000.
That's obviously much bigger.
[00:05:34]
How helpful actually is that
to a new business?
And when she says, I want
to see 25 million new businesses,
I mean, that's all fine and good.
That doesn't necessarily mean anything.
Does that mean the proposals
that we're putting forward?
We did an analysis and it's expected
that it will spur the like I don't know.
[00:05:51]
And then you hear the number
25 million new businesses.
And I think are there
25 million businesses in America.
That that seems like an incredibly
large amount of like 1 in 10 people
are going to start a new business
over the next four years.
Or maybe it is that, you know,
they say like 50% of all new restaurants
fail within six months.
[00:06:06]
Maybe there's a lot of churn in that,
I don't know, but some of it sounds good
in terms of the feasibility.
I thought that that clip you played with
Stuart Varney and whatever that other guy
is was interesting because, like, he was
all jazzed because business or whatever.
And then the other guy was like,
well, that's all well and good,
[00:06:22]
but how is she going to get it done?
Well, presumably legislation
and then you might counter,
well, the Republicans wouldn't support it.
- Why?
- I know.
- I mean.
- It's a business tax cut.
Republicans purport
to love small businesses,
want to help support small businesses.
[00:06:39]
They love tax cuts.
So I mean, it would be interesting
to see how this would play out
should Kamala Harris actually win and be
able to move forward with these proposals.
I am curious to see how Republicans
would behave and look.
It is not far fetched that they
would try to serve as an obstacle
[00:06:57]
to passing this type of legislation,
even if it's legislation
that they would actually favor.
I mean, that's what happened
with the Senate bill on immigration.
Trump told them to squash it
because he wanted to run on immigration.
They did it.
Yeah, it would just it would be so counter
to what they claim to support,
[00:07:16]
although the immigration bill was similar.
Of course, we know in reality
99 times out of 100
when they talk about small business,
what they mean is massive corporations.
And maybe there's a few small businesses.
That's what we're focusing on, right?
Whereas she seems to have a plan
that specifically targets them,
which that's good.
[00:07:33]
Yeah, I don't know.
Again, this isn't the sort of thing that I
think tons of people are going to grasp
on to, but I could see it being helpful,
like for a lot of people's interests.
Like you were talking about like,
well, that really does
seem like it'd be helpful.
I think some people might look
into it as a result of that.
[00:07:49]
It's just it's harder for me to assess
how this will play nationally
than like the suite of proposals
she put out, like three weeks ago
About housing costs and things like that.
I think this is targeted
at a more niche audience.
Not super niche, but more niche.
Yeah, I am curious about how this will
help her electorally as well,
[00:08:06]
but also more interested in seeing
analysis from economic experts
on how this could potentially help or even
hurt the American economy or businesses.
Let's talk a little bit
about how she would fund this.
[00:08:21]
Right.
Because look, we're talking about tax
cuts here and we're already dealing
with a big deficit issue.
We're dealing with the Trump era tax cuts
which cost the federal government
$2 trillion.
So how is she going to pay for this?
Right. Let's ask that question.
[00:08:37]
The question that you'd hear from CNN
if someone was proposing Medicare for all,
how are you going to pay for it?
Well, she is apparently branding herself
as fiscally disciplined,
which is usually a Republican line.
But let's tell you what she means here.
Harris is expected to argue
on the campaign trail that the revenue
[00:08:56]
gained by rolling back certain provisions
in the 2017 Tax Cuts
and Jobs Act should be used to fund
community level investments
and other programs that affect Americans
in a more targeted way.
Harris believes the federal government
should use those expiring tax cuts
[00:09:14]
to get at issues that affect
the bottom line for the average American.
I would rather it go to billionaires,
but that sounds okay.
Yeah, but look,
that is also a very vague statement.
Like like what does that mean? Okay.
It should go toward use those expiring tax
cuts or the revenue that will be generated
[00:09:34]
as a result of those tax cuts expiring.
Use those on issues that affect
the bottom line for the average American.
- Yeah.
- Yeah.
I mean, that that obviously
isn't just intended to explain how she's
going to fund this plan, but a lot of
what she's going to be proposing, I guess,
[00:09:52]
and they are big figures.
I mean, you talked about how much
the tax cuts originally, you know, cost.
And I just saw an estimate
earlier today that,
continuing those and expanding them
in a variety of ways that Donald
Trump has promised on the campaign trail
is estimated over the next decade
[00:10:09]
to cost over $10.5 trillion.
So these are very large sums of money
that could pay for a lot of stuff,
theoretically.
The final thing that I want to get into,
just briefly, is,
she has kind of backed off of the Biden
[00:10:24]
proposal for taxing capital gains.
So we've covered this before.
But just in case you missed that coverage
or are unfamiliar
with what we're talking about
when it comes to capital gains, we are not
talking about unrealized gains here.
There's been a discussion and debate
about taxing unrealized gains.
[00:10:41]
Put that aside.
That's not what we're talking about.
So capital gains is when you're invested
in something and the stock market and your
investment has some returns, right.
Your your money is growing
after you've invested in a company
or a particular stock.
When you cash out, you actually end
[00:10:59]
up paying a far lower percentage in taxes.
For those capital gains,
it's somewhere between 15 to 20%.
So Biden wanted to tax
wanted to tax capital gains at 39%.
I say wanted because he proposed it
but didn't do anything about it.
[00:11:15]
So I have a hard time believing
he actually wanted it,
but he wanted to tax capital gains at 39%.
Harris has come out with her proposal,
and the top marginal tax rate for capital
gains would be 28% under her proposal,
so she's starting at a lower percentage.
[00:11:31]
I think capital gains should just
be taxed similar to income, right.
So yeah,
like let's stop playing this game.
But the fact that she's coming in
at a lower percentage to me signals that
nothing's going to nothing will likely
change when it comes to capital gains.
[00:11:46]
But you mean you don't think
that she'll do the 28%?
No. I mean, if she did,
I mean, that's theoretically
almost a doubling of it, but.
Yeah, it's also possible
it'll do absolutely nothing.
And that, like if you wanted to be the guy
on the right of Stuart Varney being like,
well, how are you going to get it done?
I think that's a more legitimate thing
to talk about for raising capital gains,
[00:12:04]
where the Republicans
would fight to the death over that.
- That makes more sense there.
- I don't, by the way.
Yes, I do believe Republicans
would fight to the death over this.
- Oh, a.
- Lot of Democrats do.
But let's remember, Nancy Pelosi beats
the S&P 500 year after year because she's.
[00:12:19]
- That damn good.
- She's so good.
I mean, she should be working
on Wall Street.
She'd make a killing. Come on.
Instead she's working for Wall Street.
Making a killing.
Exactly.
I'm pretty sure all of those members of
Congress who are trading individual stocks
are not really interested
in paying a higher percentage in taxes
[00:12:35]
for their capital gains.
Just there's a little bit of a conflict of
interest there, you know what I'm saying?
Yeah, I do.
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