Vice President Harris’ Work on economic policy continued on Monday, when her campaign team announced that if she won the election she would push for an increase in corporate tax from the current 21% to 28%.

Harris campaign spokesman James Singer said the policy was “a fiscally responsible way to put money back in the pockets of working people and ensure that billionaires and major corporations pay their fair share.”

The USA Corporate tax rate was 35% when former President Trump – now Harris’s main presidential rival – and Republicans in Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017. The law cut the corporate tax rate to 21% while reducing income taxes for most taxpayers.

Harris’ proposal is consistent with President Biden’s fiscal year 2025 budget proposal, released earlier this year, which called for an increase in the corporate tax rate to 28%.

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Vice President Harris’ campaign said she supports raising the corporate tax rate from 21 to 28 percent. (Allison Joyce/AFP via Getty Images / Getty Images)

This also represents a departure from the position Harris took in her short-lived 2020 presidential campaign, in which she called for the corporate tax rate to be returned to the pre-TCJA rate of 35% to fund her progressive agenda.

An analysis by the non-partisan Tax Foundation on the 2025 fiscal year Biden-Harris budget The proposal concluded that the increase in corporate tax would have the greatest negative impact of the proposed measures on economic growth and the labor market.

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Vice President Harris’s stance on raising the corporate tax rate to 28% is consistent with President Biden’s budget plan. (Brendan Smialowski/AFP via Getty Images / Getty Images)

“The increase in the corporate tax rate to 28 percent is the biggest driver of the negative impact. It reduces long-term GDP by 0.6 percent, the capital stock by 1.1 percent, wages by 0.5 percent and Full-time equivalents by 128,000,” wrote the Tax Foundation.

The organization’s analysis estimated that raising the corporate tax rate to 28% would raise $1.023 trillion Tax revenue in the period 2024–2034.

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The Biden-Harris administration failed to raise the corporate tax rate when Democrats controlled both houses of Congress. (Allison Joyce/AFP via Getty Images / Getty Images)

The bipartisan Committee for a Responsible Federal Budget (CRFB) also analyzed Biden-Harris’s FY 2025 budget proposal, finding that raising the corporate tax rate from 21% to 28% would raise $1.425 trillion in tax revenue over the 2024-2034 period.

Raising the corporate tax rate to 28% would raise that rate above the global average, which, according to the Tax Foundation, averaged 23.45% across 181 countries in December 2023. Weighted by GDP, that would give an average corporate tax rate of 25.67%.

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Harris’ announcement comes after she announced part of her Economic Agenda The CRFB estimated on Friday that the cost would be at least $1.7 trillion over 10 years, potentially rising to $2 trillion if certain provisions to support the housing industry were made permanent.

Reuters contributed to this report.