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. Hey, don't scroll away. Come back, come back. Because before the video continues, we just want to urge you to lend your support to tight you power our honest reporting. You do it at tyt.com/team and we love you for it. [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. If you enjoyed this video, that's because of our members. They make us independent. They make us strong and they make us honest. 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