House Democrats Float 26.5% Top Corporate Rate in Tax Plan
- Corporate tax rate, capital gains would be short of Biden plan
- House Ways and Means panel set to debate proposal on Tuesday
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House Democrats on Monday released a package of tax increases that falls short of President Joe Biden’s ambition, an acknowledgment of how politically precarious the White House’s $3.5 trillion economic agenda is for party moderates.
The Democratic proposal from the Ways and Means Committee would raise the top corporate tax rate from 21% to 26.5%, less than the 28% Biden had sought. The top rate on capital gains would rise from 20% to 25%, instead of the 39.6% Biden proposed. Including a 3.8% Medicare surtax on high earners, the top capital gains rate would be 28.8%.