Politics
Conservative economists pour cold water on Harris' new small-business tax proposal
Conservative economists are pouring cold water on Vice President Kamala Harris’ new proposal aimed at reducing startup costs for new small businesses as part of her “Opportunity Economy” economic platform.
Harris unveiled new small-business tax proposals last week aimed at reducing the cost burden related to starting a new business. Among the proposals was a substantial increase in the standard tax deduction for small-business startup costs, from $5,000 to $50,000. “It’s essentially a tax cut for starting a small business,” the vice president said during a stump speech announcing the new proposal. “We’re going to help more small businesses and innovators get off the ground.”
Meanwhile, Harris has simultaneously expressed support for raising marginal tax rates for both corporations and individuals, which conservative economists argued would work to diminish the benefit received by the tenfold increase in the startup deduction.
“She wants to increase taxes on all kinds of income, on all classifications of income, so no matter how the small business is ultimately structured, they will still be paying more,” conservative economist E.J. Antoni told Fox News Digital. “Now, is that going to be diminished by this increase in the tax deduction? Absolutely. But, then, why are you doing both? That doesn’t make any sense.”
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Under the Trump administration, standard deductions were increased while marginal tax rates were lowered, Antoni pointed out. Additionally, under former President Trump’s tax cut measures, small business owners were allowed to claim a deduction for their “qualified business income.” It will ultimately be up to Congress to decide whether to keep any of Trump’s expiring tax cuts.
Trump spoke at the Economic Club of New York on Thursday, during which he laid out plans like lowering the corporate tax rate from its current 21% to 15%. Trump’s first-term tax cuts reduced it previously from 35%.
“Harris wants to do the opposite [of Trump],” Antoni said. “She wants to increase the deduction, but then increase the marginal tax rates.”
The economy consistently ranks as the most important issue for voters heading into a presidential election.
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Robert Wolfe, a Harris supporter and former chairman of UBS Americas, a global wealth management firm, pointed out that the tax rate increase for individuals will only impact those making more than $400,000.
“We want small businesses being built,” Wolfe said. “And we know that the ramp-up phase takes time, and so the idea that we wouldn’t applaud small businesses and entrepreneurs getting tax credits doesn’t make sense to me.”
Richard Stern, director of the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation, said that under current tax laws, new business owners can already deduct most early-stage expenses, like payroll and equipment costs. Startup expenses, meanwhile, are defined under the tax code as those costs incurred prior to a business being registered with the federal government, which, according to Stern, are typically pretty minimal.
“Harris’ new tax deduction for small businesses isn’t a subsidy for starting a business per se,” he said. “It’s only useful if you actually spend $50K on pre-business expenses. So, this is disproportionately a subsidy for larger starting businesses.”
Stern also agreed with Antoni’s take that Harris is essentially giving to small businesses with one hand, while taking from them with the other.
Antoni, meanwhile, suggested that whoever is formulating economic policy for the Harris campaign is “building the train as it goes down the tracks.”
“It really seems like there were no policy proposals thought out ahead of time, and they are just throwing these things together,” he said.
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Vice President Kamala Harris helped create President Biden’s economic strategy known as “Bidenomics.” (Getty Images)
While right-wing economic experts argue Harris’ latest tax proposal would be diminished by her plans to raise taxes in other areas and do little to help inexperienced business owners start their first company, Roger Hochschild, a Harris supporter and former CEO at Discover Financial Services, says the move will be “critical to driving further economic growth.”
“I think she is very clear in her support of small businesses and acknowledging that they are the backbone of the economy,” Hochschild said.
Rhett Buttle, a former 2020 Biden campaign adviser, echoed that sentiment. He said the increased tax deduction proves Harris’ “deep commitment” to entrepreneurs, according to NBC News.
“There are broad strokes here to people from all walks of life,” he said. “Small business and entrepreneurship tends to be a great unifier in a world where people have starkly different political divisions,” Buttle said.
In addition to Harris’ new tax proposals for small businesses, she also laid out her plan this week for taxing capital gains. She wants to increase it to 33%, whereas Biden reportedly wants the current rate, which is at 23.8%, to be nearly doubled, according to The Wall Street Journal.
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A restaurant worker holds up a receipt with a note that reads “Vote Trump No Tax on Tip,” signed by former President Trump at a Philadelphia sandwich shop.
Fox News Digital reached out to the Harris campaign for comment on the criticisms about her small-business tax proposal, but was only directed to a social media post of a small business owner speaking at a Harris campaign rally.
“Do you think that your small business is better off now, than it was under the Trump administration?” NBC’s Gabe Gutierrez asked the entrepreneur.
“Oh, without a doubt,” the business owner, Brad Smith, responded. “And I think the reason is everything to do with optimism — if you’re a doom-and-gloom candidate, or president, you are not going to start a business.”
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President Donald Trump is set to deliver what the White House is calling a “historic” speech Saturday night before a massive fireworks display celebrating America’s 250th anniversary.
Trump is still expected to take the stage at 10 p.m. at the conclusion of the Salute to America celebration on the National Mall, though timing of events may fluctuate due to adverse weather, per a senior White House official.
The president’s address is expected to look back on America’s history since its founding 250 years ago, a senior White House official told Fox News.
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President Donald Trump speaks during a rally at Mount Rushmore National Memorial on July 3, 2026 in Keystone, South Dakota. (Chip Somodevilla/Getty Images)
Trump will deliver a “unique” speech featuring the stories of American heroes.
“It will be a unique speech unlike any other he’s given before,” the official added.
Earlier Saturday, Trump celebrated what he described as a “stronger than ever” America in a Truth Social post, praising the “incredible” crowds gathered in Washington despite the heat and storms.
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The grand finale lasted over two minutes to cap a 23-minute light and fireworks display over Mount Rushmore after President Donald Trump’s 28-minute speech, brief by his lengthy standards. (Matt Gade)
The president also highlighted the air shows over the nation’s capital, saying the pilots and aircraft were “at a level never seen before.”
Trump also addressed recent vandalism at the Reflecting Pool, calling those responsible “Vandal Thugs” and promising the pool would be drained and repaired after the holiday weekend.
The president’s remarks come one day after he delivered a patriotic speech at Mount Rushmore, where he called the United States the “most exceptional nation ever to exist” and warned that communism posed the nation’s greatest threat.
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The U.S. Air Force Thunderbirds perform a flyover during “Salute to America 250” Fourth of July celebrations on the National Mall on July 4, 2026, in Washington, DC. (Finn Gomez/Getty Images)
“Communism is the exact opposite of life, liberty and the pursuit of happiness — it is death, tyranny and the pursuit of evil.
A severe thunderstorm swept through Washington on Saturday evening, prompting emergency officials to urge people on the National Mall to seek shelter.
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Freedom 250, the event organizer, said it would provide updates on the evening’s schedule as weather conditions developed.
As CNN prepares for change under a new owner, the network’s chief legal affairs correspondent, Paula Reid, is heading for the exit and expected to jump to MS NOW.
The Washington-based Reid’s contract with CNN is up in several months and she has told the network she does not plan to renew. She is expected to sign on with CNN competitor MS NOW, according to people familiar with her plans who were not authorized to comment publicly.
A representative for MS NOW said the network does not comment on personnel matters but added, “as everyone in Washington knows, Paula Reid is an exceptional reporter, and any news organization would be fortunate to showcase her journalism.”
Reid‘s planned departure comes ahead of the impending merger of CNN parent Warner Bros. Discovery and Paramount. The combination has led to speculation over who will run CNN, and the uncertainty is said to have played a factor in Reid’s decision.
Reid joined CNN from CBS News in 2021.
CNN and Paramount’s CBS News will be combined after the merger, but the management structure is still under discussion. Paramount put Bari Weiss, founder of the heterodox digital news site the Free Press, in charge of CBS News in October, with a mandate to move the network’s coverage more to the political center. Based on the chaos that has ensued at CBS News under her watch, many CNN insiders are concerned over her possible stewardship of an even larger and more complex organization.
CBS News executives and on-air talent have pushed back at Weiss’ efforts to make changes at the division, which many insiders have viewed as an attempt to placate the Trump White House while Paramount seeks regulatory approvals needed ahead of closing the $111-billion Warner Bros. Discovery deal.
Internal resistance to Weiss has been strongest at the venerable news magazine “60 Minutes.” The program’s star correspondent Scott Pelley was fired last month after he confronted management over the dismissals of executive producer Tanya Simon and his on-air colleagues Sharyn Alfonsi and Cecilia Vega.
Weiss’ overhaul of the “CBS Evening News” with her handpicked anchor Tony Dokoupil has failed to improve the third-place program’s competitive position in the ratings. The program has also been criticized for some of its editorial decisions and logistical snafus.
CNN anchor Anderson Cooper has reportedly told colleagues he does not want to work for Weiss if the cable network is put under her purview. He already rejected an offer from Weiss to anchor the “CBS Evening News” and declined to renew his deal as a “60 Minutes” contributor after nearly two decades with the program.
The chaos at CBS has given pause to people at CNN. Larry Ellison, the tech billionaire and father of Paramount Chief Executive David Ellison, has reportedly promised Trump there will be sweeping changes to CNN after the merger.
Reid, 43, is among the many TV news correspondents and anchors that Trump has disparaged over the years, claiming they are unfair in their coverage. As White House correspondent for CBS News, Reid was known for asking tough questions of Trump during his White House briefings on the coronavirus.
Reid was a lawyer before becoming a journalist at CBS News in 2010. In addition to serving as White House correspondent for the network, she covered the Justice Department and the Supreme Court.
Reid would be another significant hire for MS NOW, the progressive-leaning channel that is rebuilding its roster after separating from NBC News and its parent, Comcast. The network formerly known as MSNBC is now part of Versant, a company with a stable of cable networks spun off by Comcast.
Peter Alexander, former chief White House correspondent for NBC News, is joining MS NOW as a morning anchor later this year. The network also hired former “CBS Mornings” executive producer Shauna Thomas as political director.
Doug Burgum highlights American innovation at Great American State Fair
Interior Secretary Doug Burgum joins ‘Fox & Friends’ live from the Great American State Fair in Washington. He emphasizes America’s legacy of innovation and entrepreneurship, discussing the impact of AI and free markets. Burgum also addresses recent vandalism at the Lincoln Memorial Reflecting Pool on June 22 and the upcoming July 4th opening of the Teddy Roosevelt Presidential Library.
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Interior Secretary Doug Burgum is defending President Donald Trump’s many initiatives to address infrastructure in Washington, D.C., calling it a visible reminder that the country needs to actively press back against decline.
“Nations don’t crumble by fate — they decline by choice,” Burgum told Fox News Digital.
“From rehabilitating and installing historic memorials, statues, and fountains to removing hundreds of instances of graffiti and cleaning up crime on our streets, this administration is proving that American greatness is built through action,” he continued.
Burgum’s reasoning, which came ahead of the United States’ 250th Independence Day anniversary, addresses criticisms of the administration that have surfaced in recent weeks, casting doubt on whether Trump’s many renovation and construction initiatives in Washington, D.C. have been worth their price tag.
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Split of sample tests in the Lincoln Memorial Reflecting Pool. (@realDonaldTrump via Truth Social)
As part of the 250th celebration, Trump has spent $14.7 million to restore the Lincoln Memorial’s reflecting pool, allocated $250 million to restore the Kennedy Center and is on track to spend over $400 million on the construction of a ballroom at the White House.
Trump, in a Truth Social update about the reflecting pool, framed the efforts as part of a larger effort.
“We’ve cleaned, renovated and beautified over 45 monuments and memorials, 28 statues and 22 fountains in Washington, D.C. Things are really looking good in our nation’s capital. Add to that the fact that when I became president, crime was rampant. And now Washington, D.C. is one of the safest cities anywhere in the United States,” Trump wrote.
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Interior Secretary Doug Burgum reacted during a meeting with Venezuela’s interim President Delcy Rodríguez at the Miraflores Presidential Palace on March 4, 2026, in Caracas, Venezuela. (Federico Parra/AFP via Getty Images)
The Department of the Interior, which has overseen many of the improvements, further updated its accomplishments ahead of July 4.
The city has removed 510 instances of graffiti, removed 154 homeless encampments, applied 212 tons of repair materials to roads and parkways, restored 280,000 square feet of roadway paving, rehabilitated 1,301 benches and fixed 1,913 lights.
Burgum said the repairs were emblematic of the administration’s aggressive posture towards addressing problems that had gone ignored in the past. In addition to these major improvements, DOI has restored and cleaned dozens of monuments and statues around DC.
DOI also recently helped transform Meridian Hill Park, which got high praise on social media by DC residents, into a desirable place to visit with a restored fountain that had been under construction for years with very little movement. They also cleaned and restored some of the statues in the park, including the Joan of Arc statue and the James Buchanan Memorial.
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Washington DC city workers dismantle tents and remove personal belongings during a sweep of a homeless encampment in the Foggy Bottom neighborhood in Washington, DC, on August 14, 2025. (JIM WATSON/AFP via Getty Images)
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“While others accept decline, President Trump and the Department of the Interior are restoring the heart of our nation’s capital,” Burgum said. “The Golden Age of America isn’t just a slogan, it’s being rebuilt, one landmark, one street and one victory at a time.”
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