In Vice President Kamala Harris' Bidennomics 2.0 program, she talks about making corporations and wealthy people pay their “fair share” as part of the largest package in history. $5 trillion tax increase. She says she only cares about the middle class, so why is she proposing massive tax increases for American workers and consumers?

Few people debate whether people should pay their “fair share” of taxes. The problem is that “fair distribution” is an entirely subjective judgment. What Harris is saying is, in her opinion, it's a fair share. Your opinion may differ. Her mention of a fair share is yet another cotton candy phrase. It looks delicious, but it's dirty and nutritious.

The federal personal income tax is already highly progressive. According to non-partisan tax foundationAccording to the most recent data, the top 1% of earners paid 45.8% of federal personal income taxes in 2022, while the top half of all earners paid 97.7%. Before raising these rates further, she owes the country an answer to the question: “When is enough enough?” (Related: JD FOSTER: The platitude excuse for Kamala Harris' policy proposals: price controls)

But here comes another problem. Harris suggests that raise corporate tax From 21% to 28%. Why does she think 28% represents their fair share? Does she want the rates to go up even more to make it even more fair?

An even bigger problem is that Harris insists she won't raise taxes on people making less than $400,000 a year. This conviction runs counter to her proposal to raise corporate taxes.

When a company sends an income tax check to the U.S. Treasury, the Treasury remits the amount, but the company doesn't pay any taxes. Tax payment means paying taxes. One of the oldest truisms about public finance is that businesses don't pay taxes; people do. This raises the philosophical question of how a company that doesn't pay taxes can pay its fair share of taxes.

No one knows who pays corporate taxes. The answer can vary by company, industry, and even economic cycle. As explained in a recent article, the consensus is Congressional Research Service Report; This means that most of the taxes paid by companies are distributed to workers and managers, with some remaining for consumers depending on the situation. (Related: JD FOSTER: Can Republicans save America's budget before it's too late?)

Yes, corporate taxes are largely borne by the middle class.

How do workers pay corporate taxes? One similarity is shrinkflation. When companies face upward cost pressures, they may look for ways to avoid raising prices. One way is to reduce product size. That $1 candy bar looks a little smaller than it used to be.

The portion of a corporate tax increase that is passed on to workers is unlikely to result in a reduction in cash wages. It negatively affects employee morale. Instead, future wage increases may be slower or employee benefits may take a hit, as would a less generous health care plan. Tax increase, meeting workers, stage 1.

In some cases, at least temporarily, businesses find it easier to raise prices than lower wages, which is why Harris has not only raised taxes on the middle class, but also on the poor. means that Raising taxes on the poor is a strange policy for progressives.

Ah, but at least part of the corporate tax also applies to shareholders, which means the wealthy, right? Yes and no. If you have a few stocks in an IRA, 401(k) savings plan, or simple investment account, you may be investing in American companies. Bingo, Harris is after you too.

J.D. Foster is the former Chief Economist of the Office of Management and Budget and the former Chief Economist and Executive Vice Chairman of the U.S. Chamber of Commerce. He now lives relatively freely in the hills of Idaho.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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