TUCSON, Ariz. (KGUN) — Vice President and Democratic presidential nominee Kamala Harris unveiled a plan Wednesday to increase small business tax deductions from $5,000 to $50,000.
President and CEO of REA Media Group Raul Aguirre said, a tax break like this would have been life-changing when he started his business in the early 90's.
"It costs an average of about $40,000 to start a new business. That can seem like an impossible number to many of our entrepreneurs," Aguirre said. "I know that was true for me.”
Harris is also proposing to help existing businesses by making it easier to file taxes and do business across state lines.
“Vice President Harris's proposal will help small business owners like us to continue achieving our dreams and strengthen our businesses," said Julio Garcia, owner of Buendia Breakfast and Lunch Cafe.
On the other hand, Rob Curcio, who owns OV Pizza and Pints, said, it's not a tax break he's looking for.
"I'd rather see the tax breaks go to my customers so that they have more discretionary income to actually come in and spend money," Curcio said.
While Harris's tax deduction proposal would let new businesses wait until they've turned a profit to claim the credit, Curcio said, it could take years for a business to make a profit, and, in turn, pay taxes.
"Small businesses, sometimes they don't even turn a profit in the first three-to-five years," Curcio said. "They're barely breaking even, if anything, the first two or three years."
Curcio also wonders, what happens after businesses get a tax relief as they start up?
"Lo and behold, we have a lot of new small business that start up and they get that initial $50,000 tax break, and they're lucky enough to be able to make a profit and pay taxes. At what rate are they going to pay taxes afterwards?" Curcio asked.
But, Aguirre, said, he sees the tax break as an opportunity for future Latino business owners to grow.
“Now Latinos are moving into this entrepreneurial faith. They're more college educated, they have more technological skills. So the benefits — they're going to be huge," Aguirre said.
If elected into office, Harris's plan would still need congressional approval.
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Maria Staubs is a reporter for KGUN 9, she joined the KGUN 9 team in July of 2024 after graduating from Arizona State University. Share your story ideas with Maria by emailing maria.staubs@kgun9.com or by connecting on Instagram, or Twitter.
