US Democrats set to propose 26.5% corporate tax rate in $3.5 trillion plan – Washington Post


As US Democratic Party members brace for a tough political battle to defend President Joe Biden’s $3.5 trillion stimulus, the Washington Post (WaPo) conveyed, “Some House Democrats on Sunday circulated a draft plan that would raise $2.9 trillion in new taxes targeted toward wealthy Americans, corporations and investors, as party lawmakers continued to spar in public over the size and scope of their new tax-and spending package.”

Increasing the top tax rate on Americans earning over $435,000 to 39.6% from 37% and a new corporate tax rate of 26.5%, versus 21% current rate and 28% proposal by President Biden is among the top-tier proposals by the Democrats cited on Sunday, per WaPo.

Additional details suggest a smaller-than-expected capital gains rate paid by investors from 20% to 25%, as well as ‘surtax on high-income individuals’, earning more than $5 million, signaled to raised $127 billion more government revenues.

Key quotes (from Washington Post)

Democrats contended the total slate of proposed tax increases can raise as much as $2.9 trillion, which Democrats cautioned in the document is a preliminary estimate.

Lawmakers believe this means the total $3.5 trillion package is fully paid for since it also relies on a budgetary move known as dynamic scoring that takes into account the economic activity generated by Federal spending.

Market reactions

With a bit of balancing in previously rejected demands for the much-awaited stimulus, as hinted by the news, markets welcomed the news with an uptick in the S&P 500 Futures. However, fears of a bumpy road for the aid package and tax hike concerns tame the bulls.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to daily gains around 1.1650 after mixed US data

Fueled by the broad dollar weakness, EUR/USD advanced to its highest level in nearly three weeks at 1.1670 during the European trading hours on Tuesday but retreated modestly following the mixed US data. Investors await Fed officials' speeches.

EUR/USD News

GBP/USD extends rally beyond 1.3800 on USD selloff

GBP/USD extended its rally in the European trading hours and reached its strongest level in a month above 1.3800. The broad-based selling pressure surrounding the greenback and the BoE rate hike expectations ahead of UK CPI data fuel the pair's upside.

GBP/USD News

XAU/USD targets $1791 on turnaround Tuesday

Gold price jumps 1% as the US dollar keeps losing ground across the board. Retreat in Treasury yields, risk-on mood aid the rebound in gold price. 

Gold News

Stellar's XLM won't face the same legal issues in the US as Ripple did

Ripple and XRP are still battling with the SEC nearly a year after the lawsuit was first filed. Due to the inherent similarities between the target space of XRP and XLM, some speculate that the regulators might target Stellar next.

Read more

Netflix (NFLX): Will Q3 earnings after the close be enough?

Netflix (NFLX) shares continued to perform strongly on Monday with results just around the corner. The stock has been very strong for some time, setting new all-time highs on the back of the global success of Squid Game.

Read more

Forex MAJORS

Cryptocurrencies

Signatures