Democrats may propose raising corporate tax rate to 26.5%: Report

Ways and Means Committee set to debate proposal on Tuesday

House Democrats have drafted a package of tax increases that falls short of President Joe Biden’s ambition, an acknowledgement of how politically precarious the White House’s $3.5 trillion economic agenda is for party moderates. 

The Democratic proposal would raise the top corporate tax rate from 21 per cent to 26.5 per cent, less than the 28 per cent Biden had sought, people familiar with the matter said Sunday night. The top rate on capital gains would rise from 20 per cent to 25 per cent, instead of the 39.6 per cent Biden proposed, the people said. Including a 3.8 per cent