Leading Democrats in the U.S. House of Representatives said on Monday that they are seeking to raise the nation's tax rate on corporations to 26.5 percent, up from the current 21 percent.
Democrats on the powerful House Ways and Means Committee said they will debate legislation this week that would achieve the changes as part of their broader, $3.5 trillion domestic investment plan.
Even if the legislation as proposed passes Congress and is signed by Democratic President Joe Biden, corporate taxes would still be lower than they were before the enactment of the tax cuts pushed through by Republicans in 2017. But the top individual income tax rate would revert to its pre-2017 level.
Neal, a Massachusetts representative, wants to set a graduated corporate tax rate of 18% on annual income below $400,000, 21% on income up to $5 million and 26.5% on income above $5 million. Story continues Republicans have been particularly critical of moves to increase estate taxes. The House Democrats' plan would accelerate the expiration of Republicans' temporary doubling of an exemption from those taxes to $24 million.
Biden has proposed a capital gains rate of 39.6% for those with incomes above $1 million, spurring concern from Republicans and some Democrats. The lower, 25% rate increase now being proposed would capture far more taxpayers and be supplemented by the 3% surcharge on income above $5 million. House Speaker Nancy Pelosi is aiming to have a vote in the Democratic-controlled House on the $3.5 trillion bill - or a somewhat downsized measure - as soon as the end of this month.
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