House Democrats are poised to introduce legislation that would increase the corporate tax from 21% to 26.5% and assess a 3% tax on annual incomes over $5 million for an individual, the Wall Street Journal reports. Republicans are likely to oppose the tax increases because, they’ll say, it will adversely impact working families.
Proposals in the House Ways and Means Committee are designed to raise revenue for the Democrats’ ambitious policy initiatives including the child tax credit, infrastructure and a national paid leave program. Other programs under consideration will be an increase in the minimum tax paid by foreign corporations from 10.5% to 16.5% and an increase in the capital gains tax from 23.8% to 28.8%.
“This meets two core goals the president laid out at the beginning of this process—it does not raise taxes on Americans earning under $400,000 and it repeals the core elements of the Trump tax giveaways for the wealthy and corporations that have done nothing to strengthen our country’s economic health,” White House spokesman Andrew Bates said Sunday.