Democrats want to raise taxes on the rich and corporations pay a $ 3.5 trillion budget bill

The draft proposal, which could still change before it is expected to be officially published on Monday, demands an increase in the maximum marginal rate for individuals to 39.6%, compared to 37% set by the law of Republican tax cuts for 2017, according to a plan circulating Sunday and obtained by CNN.

The rate would apply to people with taxable incomes in excess of $ 400,000 a year and to married couples who file together earning more than $ 450,000 a year.

The maximum capital gains rate would increase to 25%, from 20%.

In addition, lawmakers would give a 3% surcharge to people with adjusted gross incomes in excess of $ 5 million.

The proposal also calls for raising the higher corporate tax rate to 26.5%, compared to the current 21% set by the 2017 Republican Tax Reduction Act. It would only apply to companies with incomes above $ 5 million.

President Joe Biden had called for raising the corporate rate to 28% to pay for his economic recovery agenda. Prior to the 2017 law, the maximum rate was 35%.

The plan would also increase a number of other taxes on the wealthy and businesses, among other measures, which would raise an estimated total of $ 2.9 trillion.

This is a last minute story and will be updated.

.Source