Vice President Kamala Harris has officially endorsed a 28% corporate tax rate, aligning her position with President Joe Biden’s long-standing proposal to raise the corporate tax rate from its current level.

This new tax pledge, revealed by Harris' spokesperson, signals a strategic move as she campaigns for the presidency, positioning herself, at least on this issue, alongside Biden's economic policies, as the Washington Examiner reports.

Harris Aligns with Biden on Tax Policy

During her 2020 presidential campaign, Harris had initially advocated for a return to the pre-2017 corporate tax rate of 35%. The tax rate had been cut from 35% to 21% by Republicans in 2017 during former President Donald Trump's administration. However, Harris' 2020 campaign did not succeed, and her stance on the corporate tax rate has since evolved.

In a recent move, Harris has decided to support a more moderate 28% corporate tax rate, which aligns her closely with President Joe Biden’s tax policy.

Biden has long advocated for this rate, citing it as a balanced approach to increase revenue while maintaining competitiveness for U.S. businesses.

This endorsement by Harris was not delivered directly by the Vice President herself but was instead communicated through her spokesperson, James Singer. In a statement, Singer emphasized Harris’ commitment to economic stability for the middle class, stating that her plan would ensure that “billionaires and big corporations pay their fair share.”

Republican Tax Cuts and Their Impact

The backdrop to this tax policy debate dates back to 2017, when Republicans, under the Trump administration, significantly reduced the corporate tax rate from 35% to 21%.

This reduction was a central piece of Trump’s economic agenda, aimed at stimulating business investment and economic growth. However, the tax cuts have been a point of contention, with critics arguing that they disproportionately benefited corporations and the wealthy, while doing little to address broader economic inequalities.

President Biden, upon taking office, pledged to repeal the Trump tax cuts and raise the corporate tax rate to 28%. Despite this commitment, Biden has faced challenges in implementing these changes due to a lack of sufficient support in the Senate for tax increases. This political reality has left the corporate tax rate unchanged at 21%, even as debates over the appropriate level for corporate taxation continue.

Harris’ recent endorsement of the 28% tax rate can be seen as an acknowledgment of the political landscape, where a full return to the pre-2017 rate is not currently feasible. Her stance reflects a compromise between her earlier position and the practical considerations of garnering support for tax policy changes.

Comparison to Trump’s Tax Policy

In contrast to Harris and Biden’s approach, former President Donald Trump has indicated a desire to further reduce the corporate tax rate if he is re-elected. Trump’s focus remains on lowering taxes for businesses, with the argument that such policies will drive economic growth and increase the competitiveness of American companies on the global stage.

This divergent approach to tax policy between the current administration and Trump’s potential future administration underscores the broader debate in American politics over the role of taxation in economic management. While Trump’s policies favor lower taxes as a means to stimulate growth, Biden and Harris advocate for a higher corporate tax rate to generate revenue for government programs and to address income inequality.

Harris’ spokesperson, James Singer, contrasted her plan with Trump’s, describing the former president’s agenda as “extreme” and likely to increase the deficit and harm the economy. Singer argued that Harris’ approach is “fiscally responsible” and designed to support the economic security of the middle class.

Implications for 2024 Presidential Election

As Harris campaigns for the presidency, her alignment with Biden on the corporate tax rate could serve to solidify her position within the Democratic Party, where there is broad support for increasing taxes on corporations and the wealthy. This stance may also appeal to voters who are concerned about income inequality and the need for government investment in social programs.

However, Harris will likely face criticism from Republicans and business groups who argue that a higher corporate tax rate could stifle economic growth and make the U.S. less competitive internationally. The debate over corporate taxation is expected to be a key issue in the 2024 presidential election, with significant implications for the future of U.S. economic policy.

Harris’ decision to endorse a 28% corporate tax rate represents a strategic positioning within the broader context of American politics. By aligning with Biden, she signals continuity with the current administration’s policies, while also attempting to differentiate herself from the more extreme positions on either side of the political spectrum.

Conclusion: Harris’s Strategic Move

Vice President Kamala Harris’s endorsement of a 28% corporate tax rate marks a pivotal moment in her presidential campaign, aligning her with President Joe Biden’s tax policy and signaling a shift from her previous stance.

This move reflects the complex political realities of implementing tax policy in the current landscape, as well as the ongoing debate over the appropriate level of corporate taxation in the United States.

As the 2024 election approaches, Harris’s tax policy position will be a key issue, shaping her campaign and her potential presidency.