Kamala Harris Proposes Expanding Tax Incentives for Small Businesses
In a recent campaign stop in New Hampshire, Vice President Kamala Harris outlined her plan to expand tax incentives for small businesses, aiming to foster entrepreneurship and economic growth. Harris emphasized the importance of small businesses, describing them as "an essential foundation for our entire economy." She proposed increasing the tax incentive for starting a business from $5,000 to a significant $50,000, with the ambitious goal of generating 25 million new small business applications over the next four years.
This initiative comes as part of Harris's broader strategy to enhance her economic credentials just two months ahead of the election. She highlighted the role of small business owners as not only economic leaders but also civic leaders, integral to community cohesion. During her visit to Throwback Brewery in North Hampton, Harris underscored the importance of federal support for small businesses, referencing her campaign's backing of initiatives such as solar panel installations through federal programs.
German Government Plans Tax Incentives to Boost Electric Car Sales
In a parallel move to stimulate economic growth, the German government is introducing new tax advantages aimed at reviving the electric vehicle market, which has seen a sharp decline in sales following the cessation of subsidies. The federal cabinet recently unveiled plans to enhance tax incentives for electric cars used as company vehicles. This initiative is part of a broader strategy to advance electromobility in Germany, particularly after the government halted the environmental bonus due to budgetary constraints.
The proposed measures include a special depreciation allowance for newly registered fully electric vehicles and an increase in the gross list price cap for company car taxation from EUR 70,000 to EUR 95,000. Economics Minister Robert Habeck expressed optimism that these changes would create a "demand push" for electric vehicles in the business sector, thereby contributing to the overall growth of the economy. However, the plans have faced criticism from various sectors, with concerns about the focus on high-end electric cars rather than a more inclusive approach to electromobility.
- Harris's proposal is seen as a strategic pivot in her campaign, particularly in light of the upcoming election where economic issues are paramount. Her focus on small businesses aligns with her commitment to strengthening the middle class, a theme she has consistently championed. The contrasting narrative of her plan with previous proposals, such as combating inflation through price controls, highlights the complexities of her economic messaging. Meanwhile, in Germany, the government's initiative reflects a growing urgency to transition to electric mobility amid declining sales. The planned tax measures are expected to be in effect from July 2024 through December 2028, aiming to incentivize immediate investments in electric vehicles. However, the financial implications for the state budget, with estimated shortfalls in tax revenues, raise questions about the sustainability of such incentives.
