CHICAGO – As the Democratic National Convention began on Monday, Vice President Kamala Harris called for an increase in the corporate tax rate, marking her first major proposal to generate revenue as the party’s presidential nominee.
The Harris campaign confirmed to Fox News that the vice president is advocating for raising the corporate tax rate from 21% 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.” Campaign spokesman James Singer added in a statement, “As President, Kamala Harris will focus on creating an opportunity economy for the middle class that advances their economic security, stability, and dignity.”
If enacted, the proposal could potentially generate hundreds of billions of dollars, according to estimates from the nonpartisan Congressional Budget Office.
This announcement comes as Harris begins to outline how she would govern if elected president, including ways to finance her recent proposals, such as expanding the child tax credit, making homeownership more affordable, and reducing medical debt.
The proposed tax hike would also roll back the 2017 tax cuts, a significant piece of domestic legislation passed during former President Trump’s administration, which lowered the corporate tax rate from 35% to 21%. Trump has vowed to cut taxes again if he returns to the White House. “Our plan will massively cut taxes,” Trump said at a campaign event Monday in York, Pennsylvania. “I gave you the best tax cut in history.”
Trump also indicated he would seek to use tariffs against both competitors and allies by pushing for legislation known as the “Trump Reciprocal Trade Act.” However, the Harris campaign argues that Trump’s proposed tariffs on foreign goods “would punish middle and working class Americans, so he can cut taxes for the richest Americans.”
Some of the Trump tax cuts are set to expire at the end of 2025, which will likely trigger a major debate next year over which parts should be extended.
Jason Miller, a senior adviser to the Trump campaign, responded to Harris’s proposal on social media, writing, “bye-bye economic growth, new hirings, investment, expansion, onshoring, and so much more!”
Harris’s stance on corporate taxes also aligns with the most recent federal budget proposal by President Biden, which similarly calls for raising the corporate tax rate to 28%.
Harris took Biden’s place at the top of the Democrats’ 2024 ticket four weeks ago after Biden announced he would end his re-election bid and endorsed his vice president as his successor.
However, veteran Republican consultant and strategist Alex Castellanos told Fox News that such proposals might not benefit Harris at the polls. “She does not need the spotlight on her or her policies. She’s been two sides of too many issues. And if she supports raising the corporate tax, that’s a job killer. You don’t need to hurt working people directly. All you need to do is hurt the companies working people work for,” Castellanos argued.
