Neal Mulls Corporate Rate Hike to Fund Tax Credit Expansion (1)

A 1 percentage point increase to the corporate tax rate could be used as a pay-for to expand family tax credits in a plan under development by House Democrats.

Such an increase could help fund the broadening of the earned income tax credit, child tax credit, and child and dependent care credit—an issue that is a top priority for House Ways and Means Committee Chairman Richard Neal (D-Mass.). The expansion would be attached to legislation renewing expired tax breaks, several aides and lawmakers familiar with the package told Bloomberg Tax.

A markup of the package could happen as ...