How Kamala Harris's Tax Hike Could Affect Business Growth

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