Democrats set to raise the corporate tax rate to 26.5%, after other plans failed to meet President Biden’s goals to improve chances of passing a $3.5T social-spending package.
- Democrats on the House Ways and Means Committee are considering options, including new taxes for cryptocurrency and tobacco to help pay for Biden’s $3.5 trillion economic plan.
- House Democrats are recommending an increase in the corporate rate that is currently 21% providing less than 28% Biden was seeking. The top rate on capital gains would increase from 20% to 25%, rather than the 39.6% Biden proposed.
- Democrats are also proposing a 3% surtax on individuals with adjusted gross income in excess of $5 million and to treat cryptocurrency the same as other financial instruments, raising nearly 16$ bln.
A document circulating among members of both parties cites estimates that the new proposals would raise $2.9 trillion in revenue when combined with $700 billion in revenue and cost savings from Medicare drug price changes.
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