Kamala Harris Plans Increase of Corporate Tax Rate to 28%

PROPOSAL TO INCREASE CORPORATE TAX RATE

Vice President Kamala Harris has announced significant proposals to increase the corporate tax rate from 21% to 28%, aiming to bolster federal revenues and fund various economic initiatives. This tax hike is a key component of Harris' plan to provide financial relief to middle-class and working-class Americans, unveiled during the Democratic National Convention in Chicago. The proposed increase in the corporate tax rate aligns with President Joe Biden's earlier proposals but is less than the 35% rate Harris advocated for during her 2020 presidential campaign. By reversing one of the main aspects of former President Donald Trump’s 2017 Tax Cuts and Jobs Act, Harris' plan seeks to ensure that wealthy corporations contribute a fairer share to the nation’s budget.

SUPPORTING MIDDLE-CLASS AND WORKING-CLASS FAMILIES

The economic agenda presented by Harris includes a range of measures to alleviate the financial burden on everyday Americans. These initiatives aim to make housing, groceries, healthcare, and child-rearing more affordable. Harris has also proposed to restore and expand the American Rescue Plan’s enhanced child tax credit, which would benefit more than 100 million middle-class and lower-income Americans. The plan introduces a new $6,000 child tax credit for families with children in their first year of life, addressing high costs associated with newborn care. Moreover, Harris’ platform proposes restoring the enhanced earned income tax credit (EITC) and extending more generous Affordable Care Act premium subsidies.

BUILDING ON BIDEN ADMINISTRATION ACHIEVEMENTS

Harris’ economic proposals mark a concerted effort to build on the progress made by the Biden administration, focusing on creating an "opportunity economy" that prioritizes the middle class. A critical part of this plan is tackling high costs, particularly those that affect essential goods and services. Harris has pledged to implement measures to rein in the rising prices of groceries, take action against price gouging, and lower healthcare costs. Her strategy includes expanding the $35 monthly cap on out-of-pocket costs for insulin and the upcoming $2,000 annual limit on prescription drug expenses to all Americans, not just those on Medicare.

FUNDING THE ECONOMIC AGENDA

The vice president’s proposals have sparked debate, especially regarding the feasibility of their implementation without significantly increasing the national deficit. The Committee for a Responsible Federal Budget estimates that Harris' economic package could add up to $1.7 trillion to the deficit over the next decade, with costs potentially rising to $2 trillion if certain provisions are made permanent. Harris' campaign has indicated that these proposals will be funded by asking wealthy individuals and large corporations to contribute more, although specific details on the funding mechanisms are still forthcoming.

CONTRASTING VISIONS: HARRIS VS. TRUMP

Harris' approach to economic reform contrasts sharply with that of her Republican opponent, former President Donald Trump. While Harris advocates for increased corporate taxes to fund social programs, Trump has indicated a desire to further reduce the corporate tax rate to as low as 15%, arguing that this would stimulate economic growth. Trump has also suggested implementing broad tariffs on imported goods, a move Harris argues would disproportionately harm middle-class Americans by raising the prices of everyday products.

COMMITMENT TO ECONOMIC EQUALITY

Harris’ economic platform underscores her commitment to providing relief to working families and addressing the systemic issues that contribute to economic inequality. As she moves forward in her campaign, these proposals will be central to her argument that an economy that benefits the middle class is essential for sustained national growth and stability. With her focus on creating an inclusive economic future, Harris aims to offer a stark choice to voters between her vision of shared prosperity and the policies advocated by her Republican rivals.

SOURCES/RECOMMENDED READ:

• US corporate tax: Harris proposes raising rate to 28% to help pay for campaign promises | CNN Politics

• Harris leans into populism with proposal for middle-class and lower-income tax relief | CNN Politics