Democratic Presidential Nominee Kamala Harris announced this week that as President she would raise the corporate income tax rate to 28 percent. While in office, Trump lowered the corporate tax rate to 21 percent, and suggested increasing revenues from imposing tariffs on imported goods and services.
Harris-Walz Campaign Focuses on the Middle Class
The Harris-Walz campaign stated, “As President, Kamala Harris will focus on creating an opportunity economy for the middle class that advances their economic security, stability, and dignity.”
Harris Expounds on Policy Priorities
In the past week, Harris has expounded on potential policy priorities once she wins office, including prohibiting “price gouging.” She proposed the corporate tax increase to pay for some of the Democratic priorities she would like to see implemented.
CBO Study Supports Revenue Generation from Corporate Tax Hike
A 2018 study by the nonpartisan Congressional Budget Office concluded that a one percent increase in the corporate tax rate would generate $100 billion in additional tax revenue for the federal government over a decade.
Harris Tax Proposal Contrasts with Trump’s 2017 Tax Cuts
The Harris tax proposal differs significantly from that of former President Donald Trump. In 2017, Trump cut corporate taxes from 35 percent to 21 percent.
Trump Suggests Further Corporate Tax Cuts
Additionally, Trump has spoken at a business roundtable about cutting the corporate tax rate further to 20 percent.
Trump Campaign Criticizes Harris’s Tax Plan
Trump’s campaign responded to the proposed Harris tax increase, saying it amounts to “a punishment to American companies and workers and another gift from Kamala to China.”
Economic Challenges Under the Biden Administration
The Trump team pointed out that businesses have already suffered high inflation, increased interest rates, and higher energy prices under the Biden Administration. This economic environment has led many companies to export jobs internationally and lay off American workers.
Harris Campaign Defends Tax Increase Proposal
The Harris campaign defended its tax increase proposal, saying, “Unlike Donald Trump, whose extreme Project 2025 agenda would drive up the deficit, increase taxes on the middle class by $3,900, and send our economy spiraling into recession– her plan 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.”
Upcoming Expiration of Trump Tax Cuts
Many portions of the Trump tax cuts will expire in 2025, and the next President will significantly influence shaping the tax environment for the next decade or so, constituting a major issue in the election.
Trump Pledges Further Tax Cuts
Trump pledged to his voter base to cut taxes, saying, “Our plan will massively cut taxes. I gave you the best tax cut in history.” Trump also pledged to impose tariffs on goods entering the country to prioritize American-made goods. He proposed legislation called the “Trump Reciprocal Trade Act.”
Harris Campaign Opposes Trump’s Tariff Proposal
The Harris camp has opposed Trump’s tariff proposal, claiming it would “punish middle and working-class Americans” purportedly by eliminating cheaper imported goods from the marketplace rather than raising revenue by increasing taxes on corporations and “the richest Americans.”
Harris’s Tax Stance Aligns with Biden’s Policies
Harris’s tax stance is in line with that proposed by President Biden. One of the most effective criticisms lobbied against Harris in the current electoral environment is that her policies are already in place, as represented by the Biden-Harris Administration. Therefore, voting Harris into office is a vote for the continuation of the current Administration, for good or for ill.
Harris Supports Expanding Social and Economic Reforms
Harris has said, as has current President Biden, that she would support expanding the child tax credit, decreasing medical debt, creating more affordable home ownership, and reducing corporate price gouging and monopolies.
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