Further developing her economic strategy, Democratic candidate Vice President Kamala Harris announced on Monday her intention to raise corporate tax from 21% to 28%. Alongside measures announced last week, to build 3 million affordable new homes and tackle ‘price gouging at the supermarket, Harris’ campaign is focused on winning voters by making a direct difference in the lives of working people. She has also pledged that she will not raise taxes for people who earn under $400,000 per annum.

Her spokesman James Singer said the rise was ‘a fiscally responsible way to put money back in the pockets of the working people and ensure billionaires and big corporations pay their fair share.’ According to the Committee for a Responsible Federal Budget, the rise would reduce the US deficit by $1 trillion over a decade.

Any changes to the tax code would require Congressional approval. Similar measures to the ones Harris’s campaign are making have struggled to pass with the Republicans holding a slim majority in both houses. Even if Harris wins the election, she is going to need the election to deliver a significant swing to the Democrats in both the Senate and the House of Representatives to effectively implement these promises.

What the proposed cut does is draw attention to the contrast in policy between Harris and her rival Republican Donald Trump. A month ago, he pledged to lower corporate tax to 15%. During his presidency, Trump lowered corporate tax from 35% to 21%. He also implemented other tax breaks for big businesses which are set to expire next year. He has promised to make them permanent during his campaign, as well as promising to lift environmental regulations.

(Sources: reuters.com)