Biden's Democrats Propose US Corporate Tax Be Hiked To 26.5% From 21% - Bill

Democrat lawmakers aligned to President Joe Biden proposed to Congress on Monday that the US corporate tax be increased to 26.5% from 21%, a copy of the bill showed

WASHINGTON (UrduPoint News / Sputnik - 13th September, 2021) Democrat lawmakers aligned to President Joe Biden proposed to Congress on Monday that the US corporate tax be increased to 26.5% from 21%, a copy of the bill showed.

The overhaul in US taxes, the first in three decades, also proposed a 3-percentage-point surtax be applied on top earners and a hike of up to 5-percentage points be placed on capital gains taxes.

The key amendment suggests a "26.5 percent of so much of the taxable income as exceeds $5,000,000", the bill showed.

The House Ways and Means Committee of Congress is expected to vote this week on the proposals, which would raise trillions of Dollars from corporations and high-income households.

The proposal does not have unanimous Democrat backing, however, with Ways and Means Chairman Richard Neal advocating a more cautious approach.

The move to place a higher tax on wealthy American corporations and individuals comes as President Biden presses these groups to pay their "fair share" to fund his administration's infrastructure and welfare spending plans, totaling about $4 trillion. The president laments that some of the richest US companies and citizens virtually paid virtually no taxes by exploiting loopholes or basing their tax jurisdictions in countries with excessively generous tax rates.

The US move has also spurred global action, with the Group of 7 countries striking a historic accord in June to impose a global minimum tax on corporate foreign earnings a move that was later supported by 134 countries representing more than 90% of the world's gross domestic product.