Vice President Kamala Harris is proposing to raise the corporate tax rate to 28% in order to generate revenue for her plans as president, focusing on creating opportunities for the middle class. This move would roll back part of former President Donald Trump’s 2017 tax cuts that lowered the corporate tax rate from 35% to 21%. While Trump has suggested further tax cuts if re-elected, Harris aims to finance expensive initiatives such as expanding the child tax credit and addressing housing and medical debt costs.
The proposal aligns Harris with President Joe Biden’s budget plan, but Republicans are likely to oppose a 28% corporate tax rate. Harris may need Democratic control of Congress to pass the policy, with debate expected in 2025 as other provisions of the Trump tax cuts expire. Trump has warned that failing to renew these cuts would harm the economy, while Harris’s campaign spokesman has criticized Trump’s economic agenda as detrimental to the middle class.
Harris’s proposed corporate tax rate is lower than the one she advocated for in her 2020 presidential campaign, where she called for a complete repeal of Trump’s tax cuts to return the rate to 35%. As details of her governing vision emerge, including funding sources for her plans, Harris is positioning herself to prioritize the interests of working people over billionaires and big corporations.
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