Business

House Democrats expected to propose hike to corporate tax rate, surtax on wealthy, says source


Democrats are expected to propose a 3 per cent surtax on individual income above US$5 million. — Reuters pic
Democrats are expected to propose a 3 per cent surtax on individual income above US$5 million. — Reuters pic

WASHINGTON, Sept 13 — US House Democrats are expected to propose raising the US corporate tax rate to 26.5 per cent from 21 per cent as part of a sweeping plan that includes tax increases on the wealthy, corporations, and investors, according to a source familiar with the matter.

Democrats are also expected to propose a 3 per cent surtax on individual income above US$5 million (RM20.6 million) as part of a wide-ranging budget bill.

They are also considering raising the minimum tax on US companies’ foreign income to 16.5 per cent from 10.5 per cent and the top capital gains tax rate to 28.8 per cent from 23.8 per cent.

The Wall Street Journal first reported the outline of the proposal, citing a congressional aide. A spokesman for the House Ways and Means Committee, which is responsible for tax policy, did not immediately respond to a request for comment.

The overall package of tax changes was estimated to raise US$2.9 trillion in new revenue, largely covering the costs of President Joe Biden’s US$3.5 trillion domestic investment plan.

The proposal would also raise the top individual tax rate to 39.6 per cent from 37 per cent, as part of a series of changes aimed at high income individuals that was estimated to raise approximately US$1 trillion. — Reuters



READ SOURCE

See also  S&P Global affirms 'BBB' rating for Frasers Centrepoint Trust; takes it off CreditWatch

Leave a Reply