Democrats Move to Raise Taxes on Businesses, Top Earners

Democratic lawmakers are acting to raise taxes on businesses and top earners, while also attempting to pass the Biden administration's $3.5 trillion spending plan through Congress and into law. Democrats on the House Ways and Means Committee recently proposed several key tax changes: raising the corporate tax rate for large companies from 21% to 26.5%; raising the top capital gains tax rate from 25% to 20%; and raising the top individual income rate from 37% to 39.6%. Meanwhile, Democrats say the pandemic-era Child Tax Credit will help to reduce tax burdens for the lower- and middle-class. Many Republican lawmakers have criticized the proposal, saying it could worsen inflation and unemployment.

Coverage from left-rated outlets often concentrated on how the tax hikes could help lower-income people; some also highlighted pushback from moderate Democrats that could prevent the tax proposals from becoming law. Reports from right-rated sources usually framed the proposals in a negative light, and focused on purportedly wasteful parts of the Democrats' spending plan. Some right-rated voices accused the tax plan of harming small businesses; others argued that it still wouldn't be enough to cover the trillions of dollars spent during the pandemic and slated for future spending by Democrats.