In a destructive economic policy proposal revealed Monday, Kamala Harris wants to raise the corporate tax rate to 28 percent.

According to Fox Business, the current rate is 21 percent.

Harris campaign spokesman James Singer said the proposal is “a fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.”

However, the campaign doesn’t understand there won’t be as many jobs available for working-class Americans with such a tax increase.

“As President, Kamala Harris will focus on creating an opportunity economy for the middle class that advances their economic security, stability, and dignity,” Singer wrote in an email, according to NBC News.

“Giant corporations never pay a tax rate even close to the top corporate tax level. They have way too many exemptions, loopholes, and tax lawyers. But small business DOES pay this rate, and Kamala wants to punish Main St enterprises — even more than she already has!” Steve Cortes wrote.

Giant corporations never pay a tax rate even close to the top corporate tax level.

They have way too many exemptions, loopholes, and tax lawyers.

But small business DOES pay this rate, and Kamala wants to punish Main St enterprises — even more than she already has! pic.twitter.com/nOJeKf7PFA

— Steve Cortes (@CortesSteve) August 19, 2024

Per NBC News:

If enacted, the policy would raise hundreds of billions of dollars, as the nonpartisan Congressional Budget Office has projected that 1 percentage point increases in the corporate rate corresponds to about $100 billion over a decade. It would also roll back a big part of former President Donald Trump’s signature legislation in 2017 as president, which slashed the corporate tax rate from 35% to 21%.

Trump, meanwhile, recently said he would cut taxes even further if elected president, including on businesses.

The move comes as Harris slowly adds details to her governing vision on the week of the Democratic convention, including conveying to critics how she would seek to pay for costly ideas, such as expanding the child tax credit and easing the cost of housing and medical debt. She has not provided a cost estimate of her proposals so far or matched them with pay-fors.

This chart I made in 2021 remains relevant.

At a 28% federal rate, the U.S. corporate rate would be roughly 32 percent and the second highest in the OECD.https://t.co/JxpBGuZ18J pic.twitter.com/30xcMIZuKL

— Kyle Pomerleau (@kpomerleau) August 19, 2024

GREAT WAY TO INCREASE INFLATION
“Kamala Harris proposes raising corporate tax rate to 28%”

Kamala Harris is proposing to increase the corporate tax rate to 28% from 21% if she wins a November election.https://t.co/32iBIyQZJD

— Jim Weed (@JimBobW49) August 19, 2024

Fox Business reports:

The U.S. corporate tax rate was 35% when former President Trump, who is now Harris’ main electoral rival for the presidency, and congressional Republicans enacted the Tax Cuts and Jobs Act (TCJA) in 2017. The law lowered the corporate tax rate to 21% while also reducing personal income taxes for most taxpayers.

Harris’ proposal aligns with President Biden’s budget proposal for fiscal year 2025 that was released earlier this year and had the corporate tax rate rising to 28%.

It also represents a departure from the position Harris adopted in her short-lived 2020 presidential campaign, in which she called for returning the corporate tax rate to its pre-TCJA rate of 35% to help finance her progressive platform.

An analysis by the nonpartisan Tax Foundation of the FY2025 Biden-Harris budget proposal found that the higher corporate income tax rate had the most significant negative impact on economic growth and the labor market of the policies put forward.

“Raising the corporate income tax rate to 28 percent is the largest driver of the negative effects, reducing long-run GDP by 0.6 percent, the capital stock by 1.1 percent, wages by 0.5 percent, and full-time equivalent jobs by 128,000,” the Tax Foundation wrote.

This is a Guest Post from our friends over at 100 Percent Fed Up.

View the original article here.