US House Democrats plan to raise corporate tax rate to 26.5%

By Ovunc Kutlu

ANKARA (AA) - Democrats in the US House of Representatives are planning to raise the corporate tax rate to 26.5%, from the current 21%, according to a statement on Monday.

House Ways and Means Committee said in a statement lawmakers will consider legislative proposals under the budget reconciliation instructions on Tuesday and Wednesday.

The topics will also include cutting taxes for small businesses, harmonizing US-based multinational corporations' tax rate with the global minimum rate of 15% agreed by over 130 countries, and other tax programs regarding housing and health.

"Our proposals allow us to both address our perilously changing climate and create new, good jobs, all while strengthening the economy and reinvigorating local communities," Committee Chairman Richard E. Neal said in the statement.

Democrats' tax plan is part of their $3.5 trillion investment objective for American economy, which House Speaker Nancy Pelosi wants to have a vote in the lower chamber before the end of this month.

If realized, it would reverse former President Donald Trump's tax cut to 21%, which was lowered from 35% in 2017.

While Democrats claim that Trump's tax cut have benefited the wealthy throughout the years, Republicans argue that it helped higher economic growth.