By Eric Ham
Congress returns from its month-long recess and big changes could be in store for corporate America. To help pay for the 3.5 trillion infrastructure package, House Democrats are considering raising corporate taxes from 21 percent to 26.5 percent. Democrats are also proposing an increase to the top capital gains tax to 25 percent up from 20 percent. Other changes include a surtax of three percent on income above $5 million and a rise in the top individual income tax from 37 to 39.5 percent. The total proposed increases are expected to raise $2.9 trillion in revenue. The $3.5 trillion in spending would be fully offset after also accounting for $600 billion generated by economic growth.
The House Ways and Means Committee has yet to formally release legislative text on tax increases, so details could still change. The committee started considering its portion of the social-spending package last week, and is scheduled to continue its markup on Tuesday. The White House said in a statement that the tax ideas under discussion by the Ways and Means Committee meet “two core goals” of Biden: not raising taxes on Americans making under $400,000 and reversing parts of former President Trump’s tax cuts for the wealthy and corporations.
Contact this reporter: eric@macenews.com.
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