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Democrats continue to push for higher tax rates, despite its negative impact of discouraging work, saving, investment, and innovation.
In the House Ways and Means Committee, Democrats have finalized their proposal for $2.9 trillion in tax hikes.
This is the “biggest tax increase in history,” Newsmax reports.
It’s certainly the largest tax increase in decades, which is meant to pay for the Democrats’ higher spending in their ‘reconciliation’ package.
The proposal is expected to include raising the corporate tax rate to 26.5% from 21%.
The plan is expected to enact a 3-percentage-point surtax on individual income above $5 million.
House Democrats are also considering increasing the minimum tax on the foreign income of U.S. companies to 16.5% from 10.5%.
Democrat will likely attempt to raise the top capital-gains tax rate to 28.8% from 23.8%.
More from Newsmax:
The significance of the proposals is that House Democrats have until now been vague about their plans to boost taxes as they try not to anger either moderates in the party concerned about the economic impact of increasing taxes or progressives who seek to raise taxes on the rich in order to expand the social safety net.
Committee Chairman Richard Neal has said that providing details for the planned increase in taxes too soon could give too much time for opposition to the proposals to grow.
The proposals, set to be formally unveiled sometime this week, would be a major step forward for Democrats as they attempt to work out their plans for what would likely be the most consequential legislation of the Biden administration.
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Other details in a five-page memo being passed around about the Democrats’ plans include tightening estate tax rules and reducing deductions for some unincorporated businesses, as well as new limits on supersized individual retirement accounts, additional restrictions on deductions companies take for highly compensated employees, and new “wash sale” rules for those who own cryptocurrencies.
The Wall Street Journal pointed out that the monetary value of the tax increases “includes $1 trillion in tax increases on individuals, $900 billion on corporations, $700 billion from drug-pricing policy changes, and $120 billion from tougher tax enforcement. Adding miscellaneous other changes and an assumption that the economy will grow reaches $3.5 trillion.”