CHICAGO – Vice President Kamala Harris is calling for raising the corporate tax rate to 28%, her first major proposal to raise revenue and fund the expensive plans she wants to implement as president.
Harris campaign spokesman James Singer told NBC News he would support a 28% corporate tax rate, calling it “a fiscally responsible way to put money in the pockets of working people and ensure billionaires and big corporations pay their fair share.”
“As president, Kamala Harris will focus on creating an economy of opportunity for the middle class that advances their economic security, stability and dignity,” Singer wrote in an email.
If passed, the policy would raise hundreds of billions of dollars because the nonpartisan Congressional Budget Office is predicted a 1 percentage point increase in the corporate rate corresponds to about $100 billion over ten years. It would also roll back much of the law former President Donald Trump signed as president in 2017 that lowered the corporate tax rate from 35% to 21%.
Meanwhile, Trump recently said he would further cut taxes if elected president. including in enterprises.
The move comes as Harris slowly adds details to his management vision The week of the Democratic conventionincluding telling critics how he would try to pay for expensive ideas like expanding the child tax credit and easing the cost of housing and medical debt. It has not yet provided cost estimates for its proposals or reconciled them with fees.
The 28% corporate tax rate is lower than what Harris proposed during the 2020 presidential campaign when he called for a complete repeal of Trump’s tax cuts that would have returned the corporate rate to 35%. The new position aligns Harris with President Joe Biden’s latest budget proposal.
Republicans are sure to oppose the 28% corporate tax rate, meaning Harris may need to control the House and Senate for Democrats to pass Congress. But a potential president, Harris, will have some leverage over the GOP to negotiate tax policy, as many other parts of Trump’s tax cuts expire at the end of 2025, sparking a big debate in Congress next year over which parts to extend. . .
In a recent press conference, Trump predicted that Democrats would be under “great pressure” to renew the tax cuts that expire next year and would destroy the economy if “Democrats fail to renew them or make it impossible to renew them.” .”
Singer, meanwhile, linked Trump to his “extreme Project 2025 agenda,” which he says will “increase the deficit” and “raise taxes on the middle class,” citing the estimated effects of Trump’s proposal to impose tariffs of up to 20%.