This announcement comes shortly after she unveiled an economic agenda aimed at providing tax relief for middle-class and lower-income Americans. Harris’ plan includes the construction of 3 million new homes to address the nation's housing shortage, a tax incentive for starter homes, a $25,000 down payment grant for first-time homebuyers, and a range of other measures designed to boost economic opportunity. However, the proposal has drawn scrutiny for its potential impact on the federal budget. According to the Committee for a Responsible Federal Budget, “the policies in this plan would increase deficits by $1.7 trillion over a decade. That figure would grow to $2.0 trillion if temporary housing policies were made permanent.” The Harris campaign asserts that the increase in corporate taxes and taxes on high earners would fund her economic initiatives. “As President, Kamala Harris will focus on creating an opportunity economy for the middle class that advances their economic security, stability, and dignity,” campaign spokesperson James Singer said in a statement cited by CNN. “Her plan 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.” The proposal seeks to reverse the corporate tax cuts enacted by Republicans in 2017 under the Tax Cuts and Jobs Act (TCJA), which included the most significant corporate tax rate reduction since 1986, cutting the rate from 35 percent to 21 percent. These tax breaks are set to expire in 2025. The corporate income tax was first introduced in 1909, with a uniform rate of just one percent for all business income above $5,000. The highest top corporate income tax rate was 52.8 percent in 1968. Any changes to the tax code would require congressional approval, meaning Harris could face significant opposition, particularly if Republicans control either the House or Senate after the election. Trump campaign spokesperson Karoline Leavitt says Harris’ proposal is “a punishment to American companies and workers and another gift from Kamala to China.” “Kamala’s plan will hurt American companies that are already suffering from Kamala’s record-high inflation and energy prices, forcing them to lay off workers here at home to seek cheap foreign labor overseas,” Leavitt stated.Vice President Kamala Harris is proposing an increase in the corporate tax rate from 21 percent to 28 percent, marking a significant shift in U.S. tax policy.
