Vice President Kamala Harris is targeting businesses with a plan to raise taxes.
As part of her presidential campaign, Harris is advocating for increasing the corporate tax rate to 28 percent. Critics argue that this move could significantly impact the economy just as the country is working to stabilize itself.
Harris campaign spokesman James Singer confirmed the plan to NBC News, asserting—without providing evidence—that the tax increase is “a fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.”
Contrary to Singer’s claim, increasing taxes on businesses does not directly benefit working people. Instead, it primarily boosts federal government revenues.
The tax increase could significantly hinder economic growth and deter investment in the U.S. By setting the rate higher than those in many other major economies, it may push businesses to relocate overseas.
“At a 28 percent federal rate, the U.S. corporate rate would be roughly 32 percent and the second highest in the OECD,” AEI senior fellow Kyle Pomerleau noted on X.
Harris’s tax plan is a key part of her strategy to strengthen her presidential platform ahead of the Democratic convention, but it’s a risky move.
So far, she has been unclear about how she will finance her costly proposals, such as subsidizing home purchases for first-time buyers and shifting personal medical debt onto taxpayers.
This isn’t the first time Harris has proposed a tax increase. During her unsuccessful 2020 presidential campaign, she aimed to fully repeal Trump’s tax cuts and raise the corporate rate to 35 percent. Now, she’s proposing a 28 percent rate, aligning more closely with President Joe Biden’s budget. However, even at 28 percent, businesses would still face a substantial burden.
Republicans are anticipated to strongly oppose this proposal. Harris will likely need Democratic support to pass it through Congress. Meanwhile, with Trump’s tax cuts set to expire at the end of 2025, Congress is gearing up for a heated debate over which parts to extend.
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