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U.S. House Democrats seek corporate tax increase to 26.5 percent

FILE PHOTO: The skyline of lower Manhattan is seen before sunrise in New York City, U.S., July 17, 2019. REUTERS/Brendan McDermid

Leading Democrats in the U.S. House of Representatives said on Monday that they are seeking to raise the nation’s tax rate on corporations to 26.5 percent, up from the current 21 percent.

The House Ways and Means Committee said that it will debate legislation this week that would achieve the change as part of Democrats’ broader, $3.5 trillion domestic investment plan.

The tax-writing panel has scheduled work sessions for Tuesday and Wednesday to debate tax policy and other matters under its jurisdiction to be included in the $3.5 trillion “reconciliation” bill.

In a statement, the committee said that in addition to raising corporate taxes, it will include a provision in its bill to “level the playing field by cutting taxes for our nation’s smallest businesses.”

Currently, the federal tax rate on corporations is 21 percent, down from 35 percent prior to the 2017 Republican tax cut law.

President Joe Biden had proposed raising the current rate to 28 percent.

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