House Democrats plan to propose a far lower top capital gains tax than proposed by President Joe Biden, according to news reports.
Democrats on the House Ways and Means Committee are set to propose raising the top capital gains rate from 20% to 25%, compared to the 39.6% proposed by Biden, which would have been equal to the new top rate on regular income, Bloomberg writes, citing people familiar with the matter who asked to remain anonymous.
Moreover, the Democrats intend to raise the top corporate tax rate from 21% to 26.5%, compared to the 28% proposed by Biden, the people said, according to the news service.
Under the Democrats’ plan, however, Biden’s $3.5 trillion economic plan would be fully paid for via other measures, such as new taxes on cryptocurrencies and tobacco, Bloomberg writes.
The Democrats also plan to propose a 3% surtax on Americans whose adjusted gross income is more than $5 million, according to the news service.
In addition, the plan includes caps on executive compensation deductions, Bloomberg writes.
And the current proposal would cut the $23.4 million estate and gift tax exemption for married filers at the end of this year, four years earlier than set out in former President Donald Trump’s tax cuts, according to the news service.
As outlined in a document reviewed by Bloomberg, the new proposal would help bring in $2.9 trillion in revenue when taking into account cost savings planned through Medicare drug price changes, estimated to fetch $700 billion, the news service writes.
The additional $600 billion needed for the economic plan is expected to come from the estimated economic growth effects, according to Bloomberg.
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