At a glance
- Democrats want higher taxes on high-income households and businesses to pay for the credits and other new spending, according to Tax Foundation.
- Advisors with business-owner clients face a modeling question rather than a law change: any 2027 projection has to pick a corporate rate the proposals would raise but have not set.
- Questions the analysis raises include how high to raise the rate from 21%, whether it should be graduated and what corporate base changes would accompany a hike.
Democrats have retaken the House and Senate and will push to raise the corporate rate from 21%, alongside larger health-insurance, child and earned income tax credits, Tax Foundation reported Nov. 4.
The 120th Congress opens Jan. 3. Democrats want higher taxes on high-income households and businesses to pay for the credits and other new spending, according to Tax Foundation. The sweep, as Private Wealth Daily previously reported, sent the 10-year Treasury yield down 4.7 bps.
Advisors with business-owner clients face a modeling question rather than a law change: any 2027 projection has to pick a corporate rate the proposals would raise but have not set. Republican control of the White House limits what can be enacted, Tax Foundation says, and it expects the 2027 proposals to serve as messaging and discussion vehicles on the direction of the tax code.
Questions the analysis raises include how high to raise the rate from 21%, whether it should be graduated and what corporate base changes would accompany a hike. International rules could be revisited as well, including how foreign earnings are taxed and how liability is calculated country by country.
Reported by The Advisor's Note desk from Tax Foundation and Private Wealth Daily archive. Published . Corrections