House Democrats propose tax hike in $ 3.5 trillion budget bill

House Democrats propose tax hike in $ 3.5 trillion budget bill

House Speaker Nancy Pelosi and House Ways and Means Committee Chairman Richard Neill (left), a Democrat from Massachusetts, discuss the United States-Mexico-Canada deal, known as name of USMCA, on Capitol Hill in Washington, DC Mais, on December 10, 2019.

Saul Loeb | AFP | Getty Images

House Democrats on Monday announced tax hikes on businesses and the wealthy to invest in social safety nets and climate policy, which could reach $ 3.5 trillion.

According to a summary released by the Tax-Writing Ways and Means Committee, the program demands the highest corporate and personal tax rates of 26.5% and 39.6%, respectively. This includes a 3% surtax and a 25% capital gains tax on income over $ 5 million.

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It is not clear how much the tax increase will increase and whether the new revenue will offset the full investment in social programs. Democrats could possibly lower the price of the law as centrists balk at a total of $ 3.5 trillion.

The tax proposals could change before Democrats prepare a final bill that will be passed in the coming weeks. The Ways and Means Committee will be debating tax policy when it resumes its markup of the huge spending program this week.

Senate Democrats will also have a say in the tax proposals. Senator Joe Manchin, DWV, called for a corporate rate lower than the rate supported by House Democrats.

This story is developing. Please check for updates.

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