For the past three years, politicians, businesses, and families have been grappling with inflation. Pundits across the political spectrum have argued that dramatically raising taxes on American corporations would be a quick fix to this burden on Americans. The Democratic presidential nominee, Vice President Kamala Harris, has argued that increasing the corporate rate to 28% “is a fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.” However, the clear economic truth is the opposite: Raising taxes on corporations will raise prices for consumers—and inflation will spike yet again.
The Tax Cuts and Jobs Act (TCJA) that passed under President Donald Trump in 2017 changed the trajectory of tax policy in the United States. Finally, a policy was enacted that lowered taxes for all Americans and made the United States more competitive globally.
