Vice President Kamala Harris’s Pledge to Raise Taxes on Corporations Would Put U.S. at a Competitive Disadvantage

For Immediate Release

WASHINGTON, D.C. – The RATE Coalition released the following statement in response to Vice President Harris’ campaign pledge calling for an increase in America’s federal corporate tax rate.

“Numerous studies have shown that raising the corporate tax rate is the most economically damaging tax increase, hurting working families’ jobs and incomes. Vice President Harris’s campaign pledge to raise the federal corporate tax rate to 28% would have devastating consequences, resulting in higher prices, lower wages and fewer jobs.

“Vice President Harris’s proposed increase in the federal corporate tax rate would lead to a combined federal-state tax rate of 32.4%. This new rate would position the U.S. much higher than both the EU average of 21.3% and the G20 average of 26.7%.  Even worse, the proposed Harris rate would be much higher than China’s top rate of 25% – and for some industries a 10% rate, unnecessarily putting the U.S. at a significant disadvantage in our ability to compete around the world.  

“Following the 2017 TCJA corporate rate reduction from the highest in the industrialized world at 35%, the US saw unemployment fall to a 50-year low; wages increase especially for the lowest income earners; and business investment increase by as much as 20%. We also saw corporate tax revenues increase to record levels as investment was drawn to the US and jobs and companies were no longer being shipped overseas. 

“We encourage policy makers to help the American economy thrive and disregard proposals to make our domestic businesses less competitive in the global marketplace.” 

Background: RATE Coalition members employ 55 million Americans working in all 50 states.  Our objective is to maintain America’s globally competitive corporate tax rate and create the best climate for our nation’s economy, job creators and workforce to succeed into the future. Learn more at RATEcoalition.com.

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