(Bloomberg) U.S. House Democrats are proposing an increase in the corporate tax rate to 26.5%, from the current 21%, against an earlier 28% rate in Biden’s proposal. The move is seen to pave the way for the passage of the administration’s $3.5 trillion economic plan.
The proposal will also see the capital gains taxes increased to 25% from the current 20%, against 39.6% earlier sought by Biden.
The Democrats’ proposal is also seeking a 3% surtax on individuals earning over $5 million in gross income.
Democrats in the House Way and Means Committee are also contemplating new taxes on cryptocurrency and tobacco.
The proposal targets to raise $16 billion on executive compensation cuts and a further $96 billion on nicotine products.
Senator Joe Manchin, West Virginia’s moderate Democrat, objects to the $3.5 trillion plan over inflation concerns and the competitiveness of higher corporate tax rates.
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