Harris Tax Hike Could Harm Wages, Experts Warn

In a recent discussion, experts Kevin Hassett and John Carney criticized Kamala Harris's proposal to raise the corporate tax rate from 21% to 28%, highlighting potential negative effects on the American economy. They argue that the increase would render US corporations uncompetitive on a global scale, as other regions, including Europe and Asia, would maintain lower tax rates. Hassett emphasized that restoring the corporate tax to this level without revising the broader tax base would effectively revert US tax rates to a higher burden than before, resulting in a significant $6,000 decrease in real wages for the average worker. This tax hike could revive corporate inversions, where businesses relocate to countries with lower taxes, thereby discouraging domestic investment and curbing job creation in the US. Furthermore, the experts noted that the US economy might already be in a recession, and increasing taxes during such a period could exacerbate the situation. They equated this potential economic decline to the mishaps seen under previous administrations, suggesting a return to a cycle of punitive taxation and regulation that stifles business growth. The overarching concern is that a higher corporate tax rate would chase jobs and investments away from America, detracting from any efforts to create a robust domestic manufacturing sector and undermining the overall economic stability.