House Democrats set to propose higher corporate tax rate and surtax on the rich – source

Band Pete Schroeder

WASHINGTON, September 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 comprehensive plan that includes tax increases for wealthy, businesses and investors, according to a source familiar with the matter.

Democrats are also expected to propose a 3% surtax on individual incomes above $ 5 million as part of a sweeping budget bill.

They also plan to increase the minimum tax on foreign income of US corporations to 16.5% from 10.5% and the highest tax rate on capital gains to 28.8% from 23. , 8%.

The Wall Street Journal first reported on the outline of the proposal, citing a congressional aide. A spokesperson for the House Ways and Means Committee, which is responsible for tax policy, did not immediately respond to a request for comment.

The tax change package has been estimated at $ 2.9 trillion in new revenue, largely covering the costs of President Joe Biden’s $ 3.5 trillion national investment plan.

The proposal would also raise the top personal tax rate to 39.6%, from 37%, as part of a series of changes targeting high-income people, which is expected to bring in around $ 1,000 billion.

(Reporting by Pete Schroeder; editing by Richard Pullin)

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