US: House Democrats propose to hike tax rates on corporations

The House Ways and Means Committee has announced on Monday that it seeks to raise the tax rate on US corporations.

According to Reuters, the panel is proposing a graduated corporate tax, with 18% on income below $400,000, 21% on income up to $5 million, 26.5% on income above $5 million.

Market reaction

Although the initial market reaction to this development was largely muted, Wall Street's main indexes started to edge lower from opening highs. As of writing, the S&P 500 was up 0.4% and the Nasdaq Composite was flat on the day at 15,115.