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.”
Politics
Video: Jan. 6 Rioter Hired by Pentagon
new video loaded: Jan. 6 Rioter Hired by Pentagon
transcript
transcript
Jan. 6 Rioter Hired by Pentagon
Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.
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“Full pardon or commutation?” “Full pardon.”
By Alisa Shodiyev Kaff
June 4, 2026
Politics
Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission
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Democrats splintered over a resolution seeking to block the U.S. from assisting Israel’s war against Hezbollah, an Iranian-backed terrorist group, on Thursday.
The measure, offered by progressive Rep. Rashida Tlaib, D-Mich., would require President Donald Trump to withdraw U.S. forces from Lebanon. For months, Israel and Hezbollah, a U.S.-designated terrorist group and Iranian proxy, have been at war in southern Lebanon, but the United States has not joined the conflict.
A bipartisan coalition of lawmakers, including House Minority Leader Hakeem Jeffries, D-N.Y., rejected the measure. Critics argued the resolution could aid Hezbollah and potentially hamstring U.S. military operations in the country.
Tlaib’s resolution failed 92-324, with more than half of House Democrats joining nearly all Republicans to vote it down.
The Lebanon war powers resolution divided Democrats, with House Minority Leader Hakeem Jeffries, D-N.Y., joining Republicans in rejecting the measure. (Aaron Schwartz/Bloomberg)
REP RASHIDA TLAIB MOVES TO BLOCK US OPERATIONS IN LEBANON BUT IGNORES HEZBOLLAH
Rep. Thomas Massie, R-Ky., an Israel critic, was the lone Republican to support Tlaib’s measure. Meanwhile, Reps. Derek Tran, D-Calif., and Betty McCollum, D-Minn., voted present.
House Democratic leaders said shortly before the vote they would oppose Tlaib’s resolution and work with the progressive lawmaker on a narrower measure exempting some U.S. military operations in the country. Their statement also denounced Hezbollah as a “violent terrorist organization” and a “sworn enemy of the United States.”
Tlaib, who has accused Israel of committing “ethnic cleansing” in Lebanon, did not mention Hezbollah in her resolution. She and other proponents of the measure also avoided discussing the Iranian proxy force during heated floor debate over the measure.
Republicans highlighted the omission and accused the legislation’s supporters of serving as “proxies for Hezbollah.”
“Apparently they don’t want to see Israel killing Hezbollah, even though it’s Hezbollah that is killing Israeli children, Israeli adults, Israeli elders,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said Wednesday, referring to his Democratic colleagues.
Tlaib asserted that her resolution would only affect U.S. forces actively engaged in hostilities. Republicans, however, disputed that claim and suggested it would hurt U.S. efforts to counter Hezbollah.
“It doesn’t say anything about [whether] you can keep the Marines that are in the embassy,” Mast said, referring to the U.S. embassy in Beirut. “That’s a pretty big oversight. It doesn’t say anything about whether we can keep United States armed forces that are training missions with the LAF [Lebanese Armed Forces]. Again, pretty big oversight.”
Rep. Rashida Tlaib, a Democrat from Michigan, attempted to bar U.S. forces from joining Israel’s war in Lebanon. (Tierney L. Cross/Bloomberg)
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The debate turned personal when Rep. Max Miller, R-Ohio, a member of the House Foreign Affairs Committee, linked Tlaib to Hezbollah.
“Hezbollah is a terrorist organization … and its members are butchers that you like to hang out with to a certain extent,” the Ohio lawmaker said, referring to Tlaib.
A shouting match between the two then broke out, with Tlaib demanding that Miller’s remarks be stricken from the record.
The presiding chair ultimately complied with her request, but Miller doubled down on his remarks.
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“Yes, I said it. I own it, and I stand by it,” Mast said on behalf of Miller on the floor.
Tlaib’s failed war powers resolution comes as Iran has sought to tie Israel’s invasion of Lebanon to its ceasefire negotiations with the United States.
Hezbollah, which has long helped Iran project power in the region, rejected a ceasefire agreement between Israel and Lebanon’s government Thursday.
Politics
Senate rejects an initial attempt to ban Trump’s $1.8-billion ‘anti-weaponization’ fund
WASHINGTON — Initial efforts in the Senate failed Thursday to block the $1.8-billion fund that the Trump administration has sought to establish to pay people who claim the government wronged them, though further attempts were likely to come Thursday afternoon.
Republicans narrowly voted down a Democratic amendment to ban the payout fund and then Democrats killed a Republican amendment, which would have prohibited the use of federal money for the fund but would have sent $1.7 billion to the Justice Department’s fraud division.
It was the second effort in Congress to rebuke President Trump in two days, following the House vote Wednesday to rein in Trump’s war powers in Iran.
The dueling amendments were proposed by Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Thom Tillis (R-N.C.). They were attached to the reconciliation bill that would fund Immigration and Customs Enforcement and the Border Patrol, a high priority for Republicans.
The votes came as the Senate began a “vote-a-rama,” during which lawmakers were expected to propose a stream of amendments to the immigration bill on various topics.
The Trump administration’s plan for the payment fund — widely seen as a way for Trump to compensate his political allies, including those who participated in the Jan. 6, 2021, attack on the Capitol — set off particular ire from some GOP lawmakers.
The plan has fueled growing unrest within parts of Trump’s party over his governance, compounded by the president’s endorsement of primary challengers to Sens. John Cornyn (R-Texas) and Bill Cassidy (R-La.), as well as Rep. Thomas Massie (R-Ky.), which angered some Republican senators.
Cassidy, who lost his primary and has since voiced strong opposition to Trump’s $1.8-billion fund, became a key player in the Thursday votes, voting down Schumer’s amendment but supporting Tillis’.
On Wednesday, Cassidy joined with Sen. Cory Booker (D-N.J.) to argue in a court filing that the $1.8-billion fund circumvents Congress’ authority and violates the Constitution’s spending and appropriations clauses.
“It is an unconstitutional attempt to spend the People’s money without Congressional approval,” Cassidy and Booker wrote in an amicus brief filed in the federal court case challenging the fund.
The fund was created by the Justice Department to settle a lawsuit brought by Trump against the Internal Revenue Service over the leak of his tax returns. Trump and his sons agreed to drop their personal lawsuit against the government in exchange for the creation of the $1.776-billion fund. Critics immediately questioned the plan, and it drew a rare backlash from Republicans.
In late May, GOP senators derailed plans to vote on the immigration bill over their displeasure with the payout fund and with Trump’s desire to use taxpayer funds for his planned White House ballroom. Senate Republicans removed the ballroom funding from the immigration package Wednesday, another setback for Trump.
The Trump administration sought to back away from its plans for the fund this week, following bipartisan outcry and a federal court ruling that temporarily blocked any payouts from the fund. Acting Atty. Gen. Todd Blanche said Tuesday the administration would end its plans to move ahead with the concept.
But Trump on Wednesday told reporters he didn’t know whether the fund was dead, calling it “a beautiful thing.”
After Schumer proposed the first amendment to ban the fund Thursday morning, the Senate came to a standstill as three key Republican senators deliberated. Schumer framed his effort to ban the fund Thursday as a way to force a referendum on Trump’s plan.
The amendment “offers Republicans a choice: Do you support Donald Trump’s $2 billion taxpayer-funded slush fund, or do you want to protect the American people and their paychecks?” Schumer said on the Senate floor before the vote.
Sen. Bernie Moreno (R-Ohio) urged Republicans to reject the amendment, saying Democrats were planning to “play so many games” on Thursday during the marathon session.
“We are going to fund immigration enforcement and border patrol, and I urge my Republican colleagues to stay united on that singular mission,” Moreno said.
The amendment failed after Cassidy voted against it. Republican Sens. Susan Collins of Maine, Jon Husted of Ohio and Dan Sullivan of Alaska voted in favor.
Schumer’s amendment was uniformly supported by Democrats, including California Sens. Adam Schiff and Alex Padilla.
Tillis, who also voted against Schumer’s amendment, immediately proposed his amendment. Sen. Jeff Merkley (D-Oregon) urged Democrats to oppose it, saying that the proposal would create “a new slush fund” by giving the money to the Justice Department.
“We heard over the last 48 hours that the acting attorney general said that this fund’s not moving forward. All this amendment does is codify what I believe the policy of the DOJ is,” Tillis said on the floor before voting began on his amendment. “This [fund] is unpopular, this administration has said they’re not moving forward with it; this is an opportunity for us to put it to bed.”
Responded Merkley: “Taking one slush fund and eliminating it and then creating a new slush fund still under control of the attorney general is not the way to go. The way to go is to get rid of these slush funds altogether.”
Trump has faced a recent string of failures, including the House vote Wednesday, a court ruling to remove his name from the Kennedy Center and a record-low approval rating among Americans as concern rises about economic issues, gas prices and Trump’s war with Iran.
On Wednesday, Trump lashed out against the four Republicans who backed the House war powers resolution, calling it “an unpatriotic thing” to do and calling the vote “meaningless.”
“They’re GRANDSTANDERS! They should be ashamed of themselves. MAGA!!! President DJT,” Trump wrote.
Times staff writer Ana Ceballos, in Washington, contributed to this report.
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