An Update on Potential Tax Changes
On Aug. 10, 22 senators reached agreement with the White House on a bipartisan infrastructure framework, or BIF, which proposes $979 billion in spending on so-called hard infrastructure over five years (or $1.2 trillion over eight years). Unlike President Joe Biden’s original plan, the framework includes no new taxes and instead purports to be revenue neutral by relying on creative financing options popular with Republicans like public-private partnerships, asset recycling and private activity bonds, as well as repurposed COVID-19 relief funds.
The BIF, however, does not address the vast majority of Biden’s $3.5 trillion infrastructure plan, which includes his efforts related to climate change, wealth inequality, and child care and education assistance. Democrats have resolved to address at least some of this plan through reconciliation, which will allow them to pass a second bill (the reconciliation bill) with just 51 votes in the Senate (or 50 votes with Vice President Kamala casting the tiebreaking vote).
A standoff in the House of Representatives regarding passage of the budget resolution resulted in a compromise in which moderates agreed to vote for the resolution in exchange for certain assurances. As a result, the House has set an extremely aggressive time frame to consider and process the reconciliation bill; the timeline in the Senate is less clear.
Following are the key dates to watch in this process.
Sept. 9: The House Ways and Means Committee and other committees begin reconciliation markups.
Sept. 15: The deadline set in the budget resolution for committees in both chambers to report legislative provisions of the reconciliation package (though it’s not a firm date).
Sept. 20: The House Budget Committee begins its work with the goal of having a bill on the floor on September 27, as required by the agreement struck in the House.
Week of Sept. 27: The BIF and reconciliation bill are scheduled to be considered. If the reconciliation bill is not ready for consideration, House leadership has committed to “decouple” the BIF and call it for a vote.
While we still don’t know what the plan will look like in its final form, each of these milestones will give us a little more insight on where it’s headed.
Read more
Mary Kenney
BMO Financial Group Director, U.S. Government Affairs
On Aug. 10, 22 senators reached agreement with the White House on a bipartisan infrastructure framework, or BIF, which proposes $979 billion in spending on so-called hard infrastructure over five years (or $1.2 trillion over eight years). Unlike President Joe Biden’s original plan, the framework includes no new taxes and instead purports to be revenue neutral by relying on creative financing options popular with Republicans like public-private partnerships, asset recycling and private activity bonds, as well as repurposed COVID-19 relief funds.
The BIF, however, does not address the vast majority of Biden’s $3.5 trillion infrastructure plan, which includes his efforts related to climate change, wealth inequality, and child care and education assistance. Democrats have resolved to address at least some of this plan through reconciliation, which will allow them to pass a second bill (the reconciliation bill) with just 51 votes in the Senate (or 50 votes with Vice President Kamala casting the tiebreaking vote).
A standoff in the House of Representatives regarding passage of the budget resolution resulted in a compromise in which moderates agreed to vote for the resolution in exchange for certain assurances. As a result, the House has set an extremely aggressive time frame to consider and process the reconciliation bill; the timeline in the Senate is less clear.
Following are the key dates to watch in this process.
Sept. 9: The House Ways and Means Committee and other committees begin reconciliation markups.
Sept. 15: The deadline set in the budget resolution for committees in both chambers to report legislative provisions of the reconciliation package (though it’s not a firm date).
Sept. 20: The House Budget Committee begins its work with the goal of having a bill on the floor on September 27, as required by the agreement struck in the House.
Week of Sept. 27: The BIF and reconciliation bill are scheduled to be considered. If the reconciliation bill is not ready for consideration, House leadership has committed to “decouple” the BIF and call it for a vote.
While we still don’t know what the plan will look like in its final form, each of these milestones will give us a little more insight on where it’s headed.
What to Read Next.
How Biden’s Planned Tax Changes Could Impact You and Your Business
None | August 09, 2021 Corporate Advisory, Wealth Management
President Joe Biden has laid out his American Jobs Plan and American Families Plan, which include plans to increase corporate and income taxes—…
Continue Reading>
Tell us three simple things to
customize your experience.
