Trump’s Tax Cuts for Big Business Clash with Harris’s Unclear Tax Strategy

United States: Vice President Kamala Harris wants to make big changes to the tax rules for large companies. Right now, these companies pay a tax rate of 21%, but Harris wants to raise it to 28%.

Her campaign says this will help put more money back in the hands of regular workers and make sure that billionaires and big companies pay their fair share of taxes. This change would reverse some of the tax cuts given to companies during President Trump’s time in office.

Aligning with Biden Administration’s Budget

As reported by Quartz, although the lower than what Harris proposed during her unsuccessful presidential bid four years ago a 28 percent corporate tax rate is in the line with the budget the Biden administration proposed in the month of March.

It’s also not a complete reversal of the Trump administration’s Tax Cuts and specifically that Jobs Act of 2017 when it reduced the corporate tax rate to 21% from 35%, a move which received cheer from virtually all executives including Jamie Dimon of JPMorgan Chase. The act is due to expire in 2025.

Trump’s Competing Tax Cut Proposal

Republican presidential hopeful, Donald Trump is saw as a Wall Street and big business magnet. During a dinner with the owners of the largest enterprises of the USA in June, Trump agreed to reduce the rate of the business tax to 20%. Even that decline would be negligible, with each per cent equivalent to millions of dollars for firms.

At the June sit-down, held with such titans of the American economy as Jamie Dimon, Tim Cook, the head of Apple (AAPL), Jane Fraser of Citigroup (C), and others, Trump pledged to make the cuts complete and reinstate the tax incentives for individuals and SMEs.

Although Harris has not disclosed her full tax policy, most of her economic plan has given off the impression of being a prolongation of Biden presidency policies. During the first 100 days in office Harris wants to enact laws that will ban the price gougfings of food and groceries; increase the housing stock and remove Wall Street from the housing market; increase and double the Child Tax Credit and provide $6,000 to new parents; and limit consumers’ out of pocket health care costs.

Other measures proposed by the White House in March’s budget were raising the minimum tax rate on corporations, which have sales of over $1 billion, from 15% to 21%. The efforts of the Biden administration to increase the rates of taxation for the rich also included a proposed 25% minimum tax on the billionaires. percent and an increase of the top marginal income tax rate to 39. average income inequality rose to 6 percent in the case of top one percent in the income distribution.