House Democrats propose tax hikes on the rich

Democrats on the House Ways and Means Committee revealed a plan to fund the $3.5 trillion reconciliation bill by increasing taxes on high-income individuals and corporations. Republicans oppose the plan, arguing it would hurt businesses and further stall job growth.

How much would taxes go up? The largest increase, for businesses earning more than $5 million per year, would raise the rate from 21 percent to 26.5 percent. Couples earning more than $450,000 would be taxed at 39.6 percent, up from 37 percent. The plan also includes an additional 3 percent tax on people earning more than $5 million. The proposal reverses many of President Donald Trump’s 2017 tax cuts, though the changes are still below pre-2017 rates. The committee estimated the move could raise up to $2.9 trillion over 10 years.

Dig deeper: Read my report in the Stew on how the infrastructure bill focuses on President Joe Biden’s climate change agenda.