Democrats in the House of Representatives are expected to propose an increase in the corporate tax rate in the United States from 21 to 26.5 percent.
The proposal is part of a sweeping plan to raise taxes for the wealthy, corporations and investors, Reuters news agency and The Wall Street Journal reported citing an anonymous source.
The Democrats also reportedly plan to charge a three percent annual fee to those with incomes over $5 million.
They are also considering raising the minimum tax rate on US corporations’ foreign income from 10.5 to 16.5 percent and raising the top rate of capital gains tax from 23.8 to 28.8 percent. The highest individual tax rate in the plans goes from 37 to 39.6 percent.
The total package of tax increases is expected to bring in an estimated $2.9 trillion in additional revenue, largely covering the costs of President Joe Biden’s $3.5 trillion domestic investment plan.