House Democrats Want Corporate Tax Rate Raised to 25.6 Percent to Fund Spending Plan (Getty Images)
By Jeremy Frankel | Sunday, 12 September 2021 10:16 PM
As a way to help pay for their $3.5 trillion spending plan, House Democrats want the corporate tax rate raised to 25.6 percent, up from the current 21 percent but lower than President Biden’s proposed 28 percent.
The Hill reports that, in addition to the corporate tax rate increase, House Democrats also want the top capital gains rate increased from 20 percent to 25 percent, to possibly raise the top individual income tax rate from 37 percent to 39.6 percent, and to place a 3 percentage point surtax for people with income over $5 million.
Details of the Democrat plans could still change, as the House Ways and Means Committee has not released formal legislative text on tax increases, The Hill notes.
Last week, the committee began considering its portion of the spending package and will continue its markup on Tuesday.
In a statement Sunday, White House spokesman Andrew Bates said that the tax ideas being discussed by the committee meet two of Biden’s core goals, which include not raising taxes on Americans making less than $400,000 and reversing some of former President Trump’s tax cuts for the wealthy and corporations.