To help pay for their $3.5 Trillion spending plan, House Democrats would like to see the corporate tax rate increased to 25.6 percent. This is an increase from 21 percent currently, but less than President Biden’s proposal of 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.
The Hill also reports that details of the Democrat plans may change as The Hill points out that the House Ways and Means Committee is yet to release formal legislative text regarding tax increases.
The committee began to consider its part of the spending package last week and will continue to mark up on Tuesday.
Andrew Bates, White House spokesperson, stated that the tax ideas being considered by the committee met two of Biden’s core goals. They include not raising taxes for Americans earning less than $400,000, and reverse some former President Trump’s tax cuts to the wealthy and corporations.