By John Q. Hosedrinker The proposal to raise the corporate tax rate to 28% by Kamala Harris is a step in the right direction. It is not about adding a new tax or being punitive towards businesses; it is simply about restoring a rate that was much higher in the past. Remember when companies used to be taxed at rates of 38-45%? Back in the days when America was deemed “great”? It seems fair that corporations should contribute their fair share just like the rest of us.
The issue at hand is not just about raising the corporate tax rate in isolation. It is about creating a global shift where all Western nations collectively raise their corporate tax rates to avoid companies engaging in ‘tax shopping’ and nations catering to them. Corporate profits are soaring, and it is time to hold these entities accountable for their fair share.
However, simply raising the tax rate is not the only solution. Closing the loopholes that allow big corporations to evade paying taxes altogether is equally essential. Otherwise, the burden falls on smaller businesses that do not have the luxury of utilizing complex accounting tricks to reduce their tax liability. It is about creating a level playing field and ensuring that everyone contributes their fair share towards the common good.
The history of corporate tax rates in the U.S. is telling. Under President Trump, the corporate tax rate was slashed from 35% to 21%, leading to a significant wealth gap. Kamala Harris’s proposal to increase it to 28% might seem modest to some, but it is a step towards rectifying the imbalance created by previous tax cuts.
Looking back in time, the high corporate tax rates of the past were associated with economic prosperity. During Eisenhower’s era, the corporate tax rate was as high as 50%, and the economy was thriving. The middle class was booming, and there was a sense of shared prosperity. Restoring higher tax rates on corporations could potentially pave the way for a resurgence of a strong middle class, benefiting the majority of the population.
In essence, raising the corporate tax rate is not about penalizing successful businesses or stifling economic growth. It is about ensuring that everyone plays by the same rules and contributes towards a more equitable society. By rolling back the Trump-era tax cuts and restoring a higher corporate tax rate, we can take a step towards creating a more just and prosperous society for all. It is time to prioritize the common good over individual greed and work towards building a future where everyone has the opportunity to thrive. Raising the corporate tax rate to 28% and rolling back a Trump law is a pressing issue that demands attention. Harris’s proposal to reinstate a rate that was significantly higher in the past is not just about implementing a new tax; it is about fairness and accountability. Corporations should contribute their fair share, just like the rest of us.
Creating a global shift where Western nations collectively raise their corporate tax rates is crucial to prevent companies from engaging in ‘tax shopping’ and hold them accountable for their profits. While raising the tax rate is a step in the right direction, it must be accompanied by closing loopholes that large corporations exploit to avoid paying taxes, ensuring that everyone pays their fair share.
The history of corporate tax rates in the U.S. illustrates the impact of such changes. Trump’s decision to slash the corporate tax rate from 35% to 21% widened the wealth gap significantly. Harris’s proposal to increase it to 28% may seem modest, but it is a move towards rectifying the imbalance caused by past tax cuts. High corporate tax rates in the past were associated with economic prosperity, and restoring them could lead to the resurgence of a robust middle class and shared prosperity.
Ultimately, raising the corporate tax rate is not about hampering businesses or hindering growth; it is about promoting fairness and creating a more equitable society. By rolling back Trump-era tax cuts and restoring higher corporate tax rates, we can pave the way for a just and prosperous future for all. It is time to prioritize the common good over individual greed and work towards building a society where everyone has the opportunity to succeed.