House Democrats expected to propose hike to corporate tax rate, surtax on wealthy - source

Reuters2021-09-13

WASHINGTON, Sept 12 (Reuters) - U.S. House Democrats are expected to propose raising the U.S. 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 a source 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 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.

The overall package of tax changes 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.

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