What will the presidential election mean for corporate taxes?
Trump promises cuts. Biden said businesses should pay their 'fair share.'


The outcome of the 2024 presidential election will trigger a "colossal multi-trillion-dollar fight over taxes," said Semafor. Big chunks of Donald Trump's 2017 tax cut law will expire in 2025, giving whoever wins the election — both the White House and Congress — "the opportunity to rewrite much of the IRS code." Trump hasn't officially released a tax plan, though he recently told a gathering of CEOs that he plans new cuts to corporate taxes, while President Joe Biden has offered proposals "aimed at raising taxes on multinational corporations and the richest Americans."
It's not clear that Trump has the rest of the GOP on board to slash taxes for big business. "Anti-corporate sentiment is running high among increasingly populist-minded Republicans," said Politico. One influential Republican, Rep. Chip Roy (Texas), has even proposed raising the corporate tax rate from 21% to 25%. "There's a bubbling-up concern that we should not be doing the bidding of corporate America," Roy said. Corporate lobbyists are already rushing into the fray, with one executive saying that businesses shouldn't bear the brunt of tax increases "because those businesses are the ones that are creating jobs."
What did the commentators say?
"The time is now to curb the corrosive concentrations of extreme wealth and corporate power," Oxfam's Irit Tamir said at Fortune. While the official corporate tax rate is at 21%, the "effective" tax rate — what corporations actually pay after deductions — can be much lower: The pharmaceutical industry, for example, pays an effective tax rate of 11.6%. "This is far lower than what the average American pays." Any new tax structure that preserves low rates for corporations and the rich is "one that will further inequality in this country."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Who pays corporate taxes? Look in the mirror," Phil Gramm and Mike Solon said at The Wall Street Journal. The economics are simple: "When the corporate tax rate increases, corporations try to pass the cost on to consumers." One recent Treasury study even revealed that Americans pay more in corporate taxes than in individual taxes. This is why Congress should reject efforts to raise corporate taxes. "By taxing corporations, the Democrats are taxing the American people."
What next?
Like in 2020, Biden is running this year on a promise to make the wealthy and corporations pay their "fair share," said The New York Times. But so far in his first term he has actually cut taxes overall, for both businesses and individuals, to the tune of roughly $600 billion over four years. "It's reasonable to conclude from those numbers that the Biden tax policy hasn't been some kind of radical tax-raising program," said an expert at the Urban-Brookings Tax Policy Center. But that's in large part because Congress hasn't gone along with Biden's "most ambitious tax-raising plans" — and also because he has used corporate tax breaks to encourage the growth of industries like semiconductor and electric vehicle manufacturing.
Despite his promise of corporate tax cuts, Axios said, Trump may be having trouble getting traction with the CEOs of America's biggest companies. No leader of a Fortune 100 company has donated to the former president's campaign. Forty-two CEOs supported George W. Bush's last campaign in 2004. "Roughly two-thirds of CEOs are registered Republicans," said Axios, "but they're not MAGA."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.
-
Music reviews: Bon Iver, Valerie June, and The Waterboys
Feature "Sable, Fable," "Owls, Omens, and Oracles," "Life, Death, and Dennis Hopper"
By The Week US
-
Are bonds worth investing in?
the explainer They can diversify your portfolio and tend to be a safer investment than stocks
By Becca Stanek, The Week US
-
Elon has his 'Legion.' How will Republicans encourage other Americans to have babies?
Today's Big Question The pronatalist movement finds itself in power
By Joel Mathis, The Week US
-
Trump's budget: Gutting Medicaid to pass tax cuts?
Feature To extend Trump's tax cuts, the GOP is looking to cut Medicaid and other assistance programs
By The Week US
-
How might Trump's tariffs affect the luxury goods market?
Today's Big Question Luxury clothes, cars and watches could take a hit in the coming months
By Justin Klawans, The Week US
-
'You shouldn't need a private company to fill out paperwork for you'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US
-
Tariffs: Time for Congress to take over?
Feature Senators introduce a bill that would require any new tariffs to be approved by Congress
By The Week US
-
Could Trump's tariff war be his undoing with the GOP?
TODAY'S BIG QUESTION The catastrophic effects of the president's 'Liberation Day' tariffs might create a serious wedge between him and the rest of the Republican party
By Rafi Schwartz, The Week US
-
IRS chief resigning after ICE deal on taxpayer data
Speed Read Several IRS officials are stepping down after the tax agency is forced to share protected taxpayer records to further Trump's deportation drive
By Peter Weber, The Week US
-
'In a fight, spectacle matters'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US
-
Is Elon Musk's DOGE job coming to an end?
TODAY'S BIG QUESTION Plummeting popularity, a stinging electoral defeat and Tesla's shrinking market share could be pulling the tech billionaire out of Trump's presidential orbit
By Rafi Schwartz, The Week US