Some detail, today, on House Democrats’ tax reform proposals:
A top personal tax rate of 39.6% (up from 37%)
The top capital gains tax rate increases to 25% (from 20% — this summer, 43.4% was floated)
An additional 3% surcharge on Americans making more than $5 million
A corporate tax rate of 26.5% on income over $5 million (up from 21% — President Joe Biden had initially proposed 28%)
The numbers are not as big as some Democrats (including, as we noted above, the president) might have envisaged. We’re reminded of a “Marketplace Morning Report” interview from about this time last year regarding Biden’s “pay-your-fair-share” message — and the sense that tax increases he would ultimately seek wouldn’t shock businesses.
“I wouldn’t say that he has the private sector running scared,” Ian Bremmer, president of the political risk consultancy Eurasia Group, said last August.
“I think everybody out there understands, given the nature of this crisis, that taxes are going up, that the tax cuts under the Trump administration are going to be undone, and that you need to find a way to pay for all of this stuff.”
All of this stuff. What we now know to be a $3.5 trillion domestic investment plan, to be precise.