Vice President Kamala Harris is proposing to raise the corporate tax rate to 28% in order to generate revenue to support her economic plans. Her campaign spokesman stated that this increase would be a fiscally responsible way to redistribute money to working people and ensure that large corporations and billionaires pay their fair share. This proposal is part of Harris’ focus on creating an opportunity economy that benefits the middle class by enhancing their economic security and stability.
If enacted, the 28% corporate tax rate would raise hundreds of billions of dollars over a decade. This plan would reverse a significant portion of former President Donald Trump’s tax legislation from 2017, which reduced the corporate tax rate from 35% to 21%. Trump recently announced his intention to further cut taxes, including for businesses. Harris is starting to provide more details about her governing vision, including how she plans to finance costly initiatives like expanding the child tax credit and reducing housing and medical debt.
The 28% corporate tax rate proposed by Harris is lower than what she advocated for during her unsuccessful 2020 presidential campaign, where she wanted to completely overturn Trump’s tax cuts and return the corporate tax rate to 35%. This new position aligns Harris with President Joe Biden’s most recent budget proposal. Republicans are likely to oppose a 28% corporate tax rate, so Harris may need a Democratic-controlled House and Senate to pass the measure.
As many parts of the Trump tax cuts are set to expire at the end of 2025, a potential President Harris could have some negotiating power over the GOP when it comes to tax policy. Trump has warned that Democrats will face pressure to renew his expiring tax cuts next year and that failing to do so would harm the economy. Singer, Harris’ campaign spokesman, criticized Trump’s proposed tariffs of up to 20%, claiming they would increase the deficit and taxes on the middle class.
Ultimately, Harris’ proposal to raise the corporate tax rate to 28% is a strategic move to fund her economic plans and ensure that wealthy individuals and corporations contribute more to the economy. This plan aligns with her goal of helping the middle class achieve economic security and dignity. While Republicans may oppose the increase, Harris could use leverage over the expiring Trump tax cuts to negotiate with the GOP. The outcome of this proposal will impact the future of tax policy and economic growth in the United States.
