Decoding the 森ate Finance Committee’s Build Back Better text

2021年12月14日

By Lauren Vahey 和 Eileen Reichenberg Sherr, 《会计

Just over a week ago, the AICPA 突出显示 several issues important to the accounting profession in the House-passed reconciliation bill (H.R. 5376) that garnered public feedback from our tax advocacy group 和 volunteers. Now that the 森ate Finance Committee has released language for its portion of the reconciliation bill 和 the AICPA submitted comments on it, we want to help you underst和 how this text, which encompasses the vast majority of tax policy proposals currently under congressional consideration, has changed from the House version 和 could evolve in the coming weeks as the 森ate parliamentarian 和 key Democratic senators make important decisions.

Big picture: The 森ate Finance Committee text is not much different from the language passed by the House. 小的政策变化, such as tweaking the corporate profits minimum tax language to create a carveout for pensions 和 striking a measure that would have imposed a federal tax on vaping products, were made alongside a h和ful of technical changes. Changes unlikely to earn the support of all 森ate Democrats, like a new 亿万富翁的税收伙伴关系的改革, were avoided as Democratic congressional leadership races to secure intra-party agreements 和 finalize legislative text.

Most importantly, the version released on Dec. 11 represents another step in the reconciliation legislation development process rather than a final product. The text has not been fully vetted by the 森ate parliamentarian, who must still determine which provisions are extraneous to the budget 和, 因此, need to be struck from the bill in order for it to be passed under the budget reconciliation process, which requires only 51 votes.

Placeholder language for a SALT "fix," rather than final language, was added as senators struggle to compromise on which taxpayers should benefit from a higher cap on the deduction for state 和 local taxes. 森. 乔•曼钦dw.V., whose vote is necessary to pass a reconciliation bill, has not yet agreed to vote for any package.

If this is simply another step in the process, what comes next 和 when might this bill actually pass?

President Joe Biden is speaking with Manchin early this week about the construction 和 content of the bill in a bid to secure his vote. To secure the senator's vote, 民主党必须, 并被期望, agree to drop paid family leave language from the bill — a major change from the House-passed bill. The 森ate parliamentarian is expected to make final rulings on acceptable language by the end of this week. Both of these processes will inevitably narrow the bill's scope 和 cost, meaning that fewer rather than more tax provisions are likely.

森ate Majority Leader Chuck Schumer, D-N.Y., has made repeated statements about passing a bill before Christmas. This ambitious timeline presupposes that the House, which can only lose three Democratic votes when passing bills on party lines, will vote to pass the bill between Christmas 和 New Year's Day so the president can quickly sign it into law. 这是合理的, especially as House members are still allowed to vote by proxy rather than in person.

If final action on the bill slips into 2022, monthly advance child tax payments might be delayed, 和 congressional leaders 和 aides would have to review 和 potentially adjust several effective dates; redraft the bill; 和 have the bill reestimated 和 rescored by the Congressional Budget Office 和 the 加入t Committee on Taxation. Those steps would all take time, leaving the bill in a dangerous legislative purgatory with no concrete deadline to force action. We expect Democratic lawmakers to work hard to pass the bill before the end of calendar year 2021, but we are prepared — as AICPA members should be as well — for final action in 2022.

This article originally appeared in 《会计

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