US House Democrats eye corporate tax rate hike, surtax on wealthy in spending package: Sources
US House Democrats are looking to raise 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.
The proposed rate of 26.5% would be higher than the current rate of 21% but lower than Democratic President Joe Biden's proposed rate of 28%.
Democrats want to take the measure as a way to help pay for their $3.5 trillion social spending plan, according to the two sources.
They are also seeking to increase the minimum tax on American companies' foreign income to 16.5% from 10.5% and the top capital gains tax rate to 28.8% from 23.8%.
In addition, Democrats are considering an increase in the top capital gains rate from 20% to 25%, which is significantly less of an increase than Biden proposed.
They 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.
The proposal, the outline of which The Wall Street Journal first reported, citing a congressional aide, would raise the top individual tax rate to 39.6% from 37%.
A spokesman for the House Ways and Means Committee, which is responsible for tax policy, has not yet responded to a request for comment.
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," said White House spokesman Andrew Bates in a statement.
The overall package of tax changes, summarized in a four-page document, circulated among lobbyists and congressional aides on Sunday.
It was estimated to raise $2.9 trillion in new revenue, largely covering the costs of the $3.5 trillion domestic investment plan.
The package also includes $80 billion more in extra funding for the Internal Revenue Service specifically allotted to tax enforcement of high income taxpayers, which could raise as much as $200 billion in additional revenue.
A final piece of legislation needs to be approved by Democrats in both the House and the Senate, as well as the White House.
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