Kamala Harris has proposed raising the corporate tax rate from 21% to 28%. Let the old business school prof (me) explain something you may not understand.
Corporations view taxes as one of their business expenses, just like labor costs, rent, raw materials, etc. Their price structure is based on fixed and variable operating costs, plus a profit percentage.
When one or more of a corporation's operating expenses goes up, their price will go up by at least that amount, unless they can cut some of their other expenses. Often cutting expenses means laying off workers.
If the public won't pay the new higher price, sales will decline and production will be reduced. If the product or service cannot be profitably produced at a price the public will pay, the firm stops making or offering it. Ofttimes the firm closes its doors, laying off everyone and stiffing their creditors.
Conversely, when corporate income taxes are cut, as Trump did, firms can offer products at lower prices while continuing to make a profit. Sales go up, more workers are hired, and everyone thrives including the government. To understand how this works, look up the "Laffer curve."
