Vice President Kamala Harris is advocating for a significant expansion of the small business tax deduction, a policy that was once championed by Republicans and supported by President Donald Trump. Harris’s proposal would increase the deduction for start-up expenses from $5,000 to $50,000, aligning closely with legislation that Republicans pushed for six years ago.

The original proposal, introduced by Rep. Vern Buchanan (R-FL) in 2018, aimed to raise the deduction to $20,000. It was part of the “Tax Reform 2.0” package that followed the 2017 Trump tax cuts. The bill passed the House with unanimous Republican support but faced opposition from nearly all Democrats. The Trump administration had backed the bill, highlighting its potential benefits for small business owners.

Currently, the tax code allows small businesses to deduct certain expenses like advertising and employee salaries incurred before the business officially opens, but the deduction is limited to $5,000. Harris’s proposal to raise this limit significantly is intended to encourage more entrepreneurship and small business creation.

Harris is set to promote this policy in New Hampshire as part of her goal to see 25 million new small businesses start during her first term. To date, the Biden administration has seen 19 million new small businesses established.

This move is part of Harris’s broader strategy to present herself as more business-friendly, especially in light of criticisms that the Biden administration’s policies have been harmful to businesses and the economy. In addition to the small business tax break, Harris has also expressed support for not taxing tips for service workers — a policy initially proposed by Trump — and has distanced herself from her previous support of a fracking ban.