The U.S. Vice President Aims to Reverse Trump-Era Policies by Proposing a Corporate Tax Hike to 28%
On August 19th, the campaign team of U.S. Vice President Kamala Harris announced her plan to raise corporate taxes from the current 21% to 28% if she wins the upcoming election. This proposal is part of her broader strategy to “put money back into the pockets of hardworking Americans and ensure that billionaires and corporations pay their fair share of taxes.”
During Donald Trump’s presidency, he slashed corporate taxes from 35% to 21%, along with implementing numerous other tax incentives that are set to expire next year. In his current campaign, Trump has pledged to make these tax cuts permanent.
However, the Committee for a Responsible Federal Budget (CRFB) – a non-profit organization in the U.S. – estimates that the former president’s tax cuts and job support policies could swell the national deficit by an additional $5 trillion by 2035. In contrast, Harris’s proposed tax increase could potentially reduce the U.S. deficit by $1 trillion over the next decade.
Any changes to U.S. tax policy must receive approval from Congress. Currently, the Democratic and Republican parties are in a tight race for control of both the Senate and the House of Representatives. The U.S. Congressional elections will also take place this November.
Harris Pledges to Uphold Biden’s Tax Policy and Introduce Sweeping Economic Reforms
Vice President Kamala Harris has vowed to uphold President Joe Biden’s tax policy, specifically the commitment not to increase taxes for individuals earning less than $400,000 annually. Additionally, families welcoming a new child will be eligible for a $6,000 tax reduction. In a policy announcement last week, Harris emphasized that her top priority, if elected, would be to “lower costs and ensure economic security for all Americans.
Harris also aims to curb price manipulation by large corporations, particularly in the food industry. Furthermore, she has proposed offering a $25,000 grant to renters who have consistently paid on time for two years, to assist them in purchasing their first home. Alongside this, she plans to spearhead the construction of 3 million new homes for American citizens. In addition, Harris is committed to raising the minimum wage and reducing taxes on commissions in the service industry.
Harris’s campaign has also criticized former President Trump’s economic plans, arguing that his aggressive corporate tax cuts and higher tariffs would only exacerbate inflation.
