Democrats on the House Ways and Means Committee unveiled a plan Monday to raise corporate and long-term capital gains tax rates, respectively.
The proposal, which the committee will consider Tuesday as part of a multiday markup that started last week, would raise the corporate tax rate to 26.5% from 21% and the capital gains tax rate to 25% from 20%.
The tax increases, among others, would help pay for the Democrats' $3.5 trillion social spending plan aimed at addressing climate change, expanding Medicare, paid family and medical leave and child care options, establishing universal prekindergarten, and other items.
Under the proposal, the top marginal tax rate would also be raised to 39.6% from 37%. The rate applies to married individuals filing jointly with taxable income over $450,000, heads of households with taxable income over $425,000, unmarried individuals with taxable income over $400,000 and married individuals filing separate returns with taxable income over $225,000.