House Democrats eye corporate tax rate hike, surtax on wealthy in spending package - sources
U.S. House Democrats are expected to propose raising the corporate tax rate to 26.5% from 21% as part of a sweeping plan that includes tax increases on the wealthy, corporations, and investors, according to two people familiar with the matter.
U.S. House Democrats are expected to propose raising the corporate tax rate to 26.5% from 21% as part of a sweeping plan that includes tax increases on the wealthy, corporations, and investors, according to two people familiar with the matter. Democrats are also expected to propose a 3% surtax on individual income above $5 million as part of a wide-ranging $3.5 trillion budget bill.
They are also considering raising the minimum tax on U.S. companies' foreign income to 16.5% from 10.5% and the top capital gains tax rate to 28.8% from 23.8%. The Wall Street Journal first reported the outline of the proposal, citing a congressional aide. A spokesman for the House Ways and Means Committee, which is responsible for tax policy, did not immediately respond to a request for comment.
In a statement, White House spokesman Andrew Bates said House Democrats are making "significant progress towards ensuring our economy rewards work and not just wealth by cutting taxes for middle class families; reforming the tax code to prevent the offshoring of American jobs; and making sure the wealthiest Americans and big corporations pay their fair share." The overall package of tax changes, summarized in a four-page document circulating among lobbyists and congressional aides on Sunday, was estimated to raise $2.9 trillion in new revenue, largely covering the costs of President Joe Biden's $3.5 trillion domestic investment plan.
The proposal would also raise the top individual tax rate to 39.6% from 37%, as part of a series of changes aimed at high income individuals that was estimated to raise approximately $1 trillion. The package also includes $80 billion more in additional funding for the Internal Revenue Service specifically devoted to tax enforcement of high income taxpayers, which could raise as much as $200 billion in additional revenue.
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