Democrats in the U.S. Congress are considering raising corporate taxes and the marginal tax rate on individuals, in part to pay for President Biden’s upcoming proposal to spend about $1.5 trillion on a first-round infrastructure plan and the same amount for education programs and to reduce poverty, the Wall Street Journal reported.
The tax hikes would be divided into two parts, according to insiders cited by the WSJ.
The corporate tax boosts would be part of the infrastructure legislation; the individual rate hikes and increases to capital gains taxes would be tied to education and anti-poverty legislation, the sources said.
The increases are possible, House Speaker Nancy Pelosi said last week, according to an aide cited by the WSJ. Senate Majority Leader Chuck Schumer said he has had several discussions with White House officials about various possibilities.
One such option being considered is to raise the corporate tax rate from 21 percent to 28, which Biden proposed during his presidential campaign.
Biden also suggested jacking the highest personal income tax rate from 37 percent to 39.6 and taxing capital gains as regular income for the highest-income earners.
Biden has said any tax increase he backs will not affect households earning less than $400,000 a year.
TREND FORECAST: Will taxes rise, who will they hit the most, what will it mean?
For more details, see the new articles in this issue, “RICHEST AMERICANS BEAT THE TAXMAN” and “BILLIONAIRES BEAT TAXES: LITTLE PEOPLE PAY.”
