Vice President Kamala Harris is advocating for an increase in the corporate tax rate to 28% as a key part of her strategy to generate revenue and support her ambitious policy initiatives if elected president.
Speaking to NBC News, Harris’s campaign spokesperson, James Singer, highlighted the plan to elevate the corporate tax rate to 28%, describing it as “a fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.”
Singer emphasized in an email, “As President, Kamala Harris will prioritize building an economy that benefits the middle class by providing them with greater economic security, stability, and dignity.”
The proposed tax adjustment is expected to garner hundreds of billions of dollars, backed by the Congressional Budget Office’s projection that a 1% increase in the corporate tax rate could yield approximately $100 billion over ten years. This policy would undo a significant portion of the tax cuts implemented in 2017 by then-President Donald Trump, which lowered the corporate tax from 35% to 21%.
On the other hand, Trump has proposed further tax reductions, targeting businesses among others, should he return to the presidency.
Harris is gradually elaborating on her policy plans in the lead-up to the Democratic convention, addressing questions about financing her major proposals, such as the expansion of the child tax credit and reducing healthcare and housing costs. To date, detailed cost estimates or funding mechanisms for her proposals have not been disclosed.
The proposed 28% rate marks a moderation from Harris’s previous stance during her 2020 presidential run, where she advocated for completely repealing Trump’s tax cuts to reinstate the 35% corporate tax rate. Her current position is more aligned with President Joe Biden’s recent budget suggestion.
The proposal is expected to face resistance from Republicans, suggesting that Harris would rely on Democratic control of both the House and Senate to pass it. Nevertheless, as some parts of the Trump tax cuts are set to expire by the end of 2025, Harris could have bargaining power with the GOP in forthcoming tax policy discussions.
Trump has warned that the Democrats will face significant pressure to extend his expiring tax cuts next year, arguing that failing to do so could have detrimental effects on the economy.
Singer has also criticized Trump’s future economic plans, particularly his “extreme Project 2025 agenda,” for potentially raising the deficit and increasing taxes on middle-income families, citing possible consequences of Trump’s proposal for up to 20% tariffs.
