Staff Reports
Vice President Kamala Harris is revving up her engines for a tax hike that could slow the American economic engine to a crawl. As part of her latest presidential campaign gimmick, she is waving the flag for a corporate tax rate increase to 28 percent. This move raises eyebrows, especially since the nation is still trying to recover from the economic fallout of recent years.
A spokesperson for Harris, James Singer, dutifully proclaimed that the proposed tax increase would be a “fiscally responsible” strategy to line the pockets of hardworking Americans and ensure that large corporations and billionaires pay their “fair share.” What he conveniently left out is the tough truth: Raised taxes on businesses generally don’t translate into more cash for the average worker. Instead, they just fuel the ever-expanding federal government machine, which is always hungry for more funding.
Kamala Harris Targets American Businesses With Massive Tax Hike https://t.co/VG1Jssc488
— hilda Denney (@HildaDenne8261) August 20, 2024
The consequences of this tax hike could be dire for economic growth and domestic investment. By setting the corporate tax rate higher than many of its competitor nations, the U.S. risks turning into a ghost town for businesses. When hefty taxes drive companies to consider relocating abroad for better conditions, the real question becomes whether the American worker will benefit or suffer as a result.
To put this into perspective, a 28 percent federal corporate tax rate would push the total corporate tax rate to around 32 percent, marking the U.S. as having approximately the second highest rate among OECD nations. And let’s not forget that nobody wants to race their cars in a clunker, especially a high-performance one that costs a fortune to run.
Harris’s tax proposal is part and parcel of her sketchy attempt to bolster her presidential platform before the Democratic convention. While this sounds fresh and bold, it’s also a risky bet. Up until now, Harris has been as clear as mud regarding the financing of her grand ambitions, which include subsidizing home purchases for first-time buyers and shifting personal medical debt onto taxpayers’ shoulders.
This is not the first rodeo for Harris when it comes to floating a tax hike. During her less-than-stellar 2020 presidential bid, she aimed to wipe out Trump’s tax cuts while cranking the corporate rate up to a staggering 35 percent. Now, she has reluctantly settled for a more “reasonable” 28 percent, aligning with President Biden’s budget—a budget that critics argue has been more about spending than saving. Even with this so-called compromise, businesses would still find themselves in a precarious situation.
The Republican party is gearing up for a battle against this tax proposal. Harris may need a lot of Democratic backs to push this scheme through Congress, which is no sure thing. With Trump’s tax cuts set to expire in 2025, the stage is set for a contentious debate among legislators over which tax provisions to preserve. One thing is certain: tax hikes like Harris’s are not the winning ticket on the economic amusement park ride—and taxpayers are the ones in the front row.
