How Kamala Harris's Tax Hike Could Affect Business Growth

6 Pages Posted: 18 Sep 2024

See all articles by Roy Adefarakan

Roy Adefarakan

King’s College London - King's Business School

Date Written: August 20, 2024

Abstract

This article critically examines the potential downsides of raising corporate tax rates, particularly in light of Kamala Harris's proposal to increase the US corporate tax rate from 21% to 28%. Drawing on examples from the Trump administration's tax cuts and international case studies from Ireland, Germany, and the UK, this piece explores the risks to business investment, job creation, and broader economic growth. While higher corporate taxes can generate public revenue, they may also discourage investment, reduce competitiveness, and slow long-term growth. This analysis is crucial for policymakers who must balance revenue generation with fostering a vibrant business environment.

Keywords: Corporate Tax, Economic Growth, Trump Tax Cuts, Business Investment, International Competitiveness, Innovation

JEL Classification: H25, H32, E62, G38, F21, L51, D22

Suggested Citation

Adefarakan, Roy, How Kamala Harris's Tax Hike Could Affect Business Growth (August 20, 2024). Available at SSRN: https://ssrn.com/abstract=4931324 or http://dx.doi.org/10.2139/ssrn.4931324

Roy Adefarakan (Contact Author)

King’s College London - King's Business School ( email )

150 Stamford Street
London, SE1 9NH
United Kingdom

HOME PAGE: http://https://www.kcl.ac.uk/people/adedoyin-a-adefarakan

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