Democrats' new tax proposal takes aim at corporations and wealthy Americans

House Democrats want to raise taxes on the largest corporations and wealthiest Americans to help pay for the $3.5 trillion budget reconciliation package. The series of proposed tax code changes are set to spark heated debate on Capitol Hill as Republicans and some centrists Democrats push back on the sweeping spending proposal that tackles a range of President Biden's policy priorities.

The House Ways and Means committee tasked with drafting the funding proposal unveiled its text on Monday. It comes as the committee is set to mark up the legislation on Wednesday, the same day Speaker Nancy Pelosi has set as the deadline for all committees to complete their drafted portions of the legislation.  House Democrats are proposing increasing the corporate tax rate to $26.5% up from 21% for businesses that have incomes above $5 million. At the same time, they've proposed lowering the tax rate even further for the smallest businesses making up to $400,000 to 18%. Corporations with incomes falling in the middle range would not see corporate tax hike.