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What's in the bill? The proposal would increase the top corporate tax rate to 26.5% (from 21%) and the top individual rate to 39.6% (from 37%), respectively. Meanwhile, the top federal rate on capital-gains taxes would be raised to 25% (from 20%), and - added to an existing 3.8% surtax on net investment income - the total tax bite would be 28.8%. The bill would also impose a 3-percentage-point surtax on people making over $5M and provide $78.9B in funding to the IRS to bolster tax enforcement for taxpayers earning more than $400K a year.
Getting to $3.5T... According to the Joint Committee on Taxation, the plan includes about $1T of tax increases on high-income households and about $1T on corporations. Democrats intend to generate another $120B from tougher tax enforcement and $700B from drug-pricing policy changes. The legislation also assumes another $600B in revenue from faster economic growth.
Outlook: The release of the tax details was the last major missing piece in the Democratic economic plan and will accelerate lawmakers' negotiations over new spending. Republicans are expected to mount unanimous opposition to the proposal (which would reverse the 2017 tax cuts), while Democrats have few votes to spare in the House and none in the Senate. Just last week, Sen. Joe Manchin (D., W.Va.), an influential moderate vote, penned an op-ed questioning the spending package's effect on inflation rates, budget deficits and overall debt levels. (24 comments)
In Europe, at midday, London -0.3%. Paris -0.6%. Frankfurt flat.
Futures at 6:20, Dow flat. S&P +0.1%. Nasdaq flat. Crude +0.5% at $70.83. Gold -0.3% at $1788.70. Bitcoin +3.1% at $45871.
Ten-year Treasury Yield +1 bps to 1.34%
Corpus Christi refineries, terminals brace for tropical storm hit.
Oracle (NYSE:ORCL) posts soft revenues after ramping up cloud investment.
Intuit (NASDAQ:INTU) agrees to buy Mailchimp for about $12B.
Moderna (NASDAQ:MRNA) jab shows highest vaccine efficacy based on ER visits.
ViacomCBS (NASDAQ:VIAC) confirms Robbins to lead restructured Paramount Pictures.
Restaurant-tech company Toast (TOST) seeks $16B valuation in IPO.
Uber (NYSE:UBER) drivers are employees, not gig workers, rules Dutch Court.
Virgin Galactic (NYSE:SPCE) delays first commercial research space mission.
Bitcoin (BTC-USD) could reach $100K; Ether (ETH-USD) to $5K? - Bloomberg Crypto Outlook.


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