NEW YORK—Investors are ramping up their focus on Washington, as the twin prospects of a tax hike and a potentially prolonged fight over raising the debt ceiling loom over a rally in U.S. stocks.
Democrats in the U.S. House of Representatives on Monday proposed raising the top tax rate on corporations to 26.5 percent from the current 21 percent, and increasing income and capital gains taxes on individuals making above $400,000 as part of a plan to rollback former President Donald Trump’s signature tax bill passed in 2017.
