America is experiencing a 13-year high in corporate bankruptcies, with more companies going under than during the lockdown era of the pandemic. Companies are rushing to friendshoring opportunities to avoid the tax that comes with the Made in America label. Businesses are reluctant to hire even low-wage workers. America lost China as its top trading partner and is experiencing supply chain issues. Instead of implementing meaningful legislation to promote American businesses, Kamala Harris plans to increase taxes.
Kamala Harris believes that the corporate income tax rate should rise from 21% to an astounding 35%. Even Joe Biden’s plan sought to “only” raise this tax to 28%. America would lose its competitive advantage and boast one of the highest corporate taxes in the world.
The average corporate taxation rate among the G7 nations stood at 27.18% in 2023 (26.88% when weighted by GDP), while the G7 has a rate of 27.09% (26.51% weighted). China’s corporate tax rate stood at 25% last year, but the rate for Asia overall averaged 19.8% (25.02% weighted). The European Union imposed a 21.15% corporate income tax last year (25.21% weighted). The overall corporate tax rate among 181 nations was 23.45% (25.76% weighted).
Corporate taxes have been steadily declining since 1980. The 2017 Tax Cuts and Jobs Act (TCJA) was signed into law by Donald Trump reduced corporate taxes from 35% to 21% and successfully attracted business to America. Most of the provisions provided under this act are set to expire in 2025. The top marginal rate on income taxes were reduced from 39.6% to 37%, which was surprisingly controversial as people vehemently believe that those with more and the reason that others have less.
Do voters believe this measure will punish “greedy” corporations? It will only lead to costs rising for the consumers and companies taking their business offshore. They could raise taxes 100% and it STILL would not be enough to support government’s uncontrolled spending. These politicians will never look at how their policies are affecting the economy because they prefer to hunt down their own citizens for funding. It is astonishing that anyone can run for president with no working knowledge of basic economics.