Harris suggests boosting the corporate tax rate to 28% to finance pledged commitments
Following the reveal of her four-part financial plan promising tax reductions for working and middle-class citizens, Vice Presidential candidate Kamala Harris disclosed her initial strategy for financing her policy agenda should she triumph in the presidential elections.
In a statement, campaign representative James Singer declared, "As President, Kamala Harris will prioritize establishing a prosperous economy for the middle class, upgrading their financial stability, durability, and respect." Her scheme represents a prudent approach to returning cash to the wallets of laborers and making top tycoons and corporations contribute their fair share of taxes.
The proposed tax increase aligns with President Joe Biden's support but stops short of the 35% rate Harris advocated for during her presidential run in 2020. This move would counteract a significant part of former President Trump's 2017 Tax Cuts and Jobs Act, which minimized the corporate income tax rate from 35%, a reduction that does not expire as the individual income tax provisions of the TCJA do, and will cease to apply after 2025.
This tax hike, as per estimates by the Committee for a Responsible Federal Budget, would slash the deficit by $1 trillion over the next decade. The expansion of Harris' economic package is predicted to cost $1.7 trillion over the same period.
Meanwhile, Trump defined his agenda by proposing to slash business taxes and offer financial assistance to citizens. He suggested bringing the corporate tax rate as low as 15%. While admitting last month during an interview with Bloomberg Businessweek that achieving such a significant reduction would be challenging, Trump expressed an intent to reduce it.
Lastly, Harris unveiled a populist economic plan on the previous Friday, focusing on policies designed to make housing, groceries, healthcare, and childcare more affordable. This plan would provide tax relief to over 100 million middle-income and lower-income citizens primarily by restoring the enhanced child tax credit under the American Rescue Plan Act and by implementing a new $6,000 tax credit for children during their first year of life.
In her political campaign, Kamala Harris emphasizes the need for corporations and wealthier individuals to pay more taxes to fund her policy agenda. Should she become president, her administration will focus on prioritizing a strong economy for the middle class and ensuring they pay less in taxes while the wealthy contribute more.
