The new Democratic House Budget Committee chairman said Friday that the fiscal 2020 budget blueprint his chamber produces will seek to raise revenue by increasing the corporate tax rate from the current 21 percent to between 25 percent and 28 percent, Roll Call reports.
The 2017 Republican tax law cut corporate tax rates from 35 percent to 21 percent. Corporate income tax revenues for fiscal 2018 totaled $205 billion, down 31 percent from $297 billion in fiscal 2017.
The Democratic budget plan could also call for rate increases for high-earning individuals.
Rep. John Yarmuth (D-KY), the new head of the Budget Committee, said he wants to have a budget plan ready to go to the House floor in early April, though he acknowledged that there’s little chance that the Republican-controlled Senate would agree on a resolution.
In the absence of a budget resolution approved by both the House and Senate, a bipartisan agreement to again raise spending caps would be necessary to prevent limits imposed by the 2011 Budget Control Act from forcing steep cuts. “If we don’t change the caps, we’d be stuck with an 11 percent cut in defense spending and 9 percent cut in nondefense,” Yarmuth said, according to Roll Call. “I don’t think either side would want to do that.”