The House Ways and Means Committee on 15 September approved tax increase and tax relief proposals that are to be acted on by the House of Representatives as part of ‘Build Back Better’ reconciliation legislation (the bill). The legislation was approved by a largely party-line vote of 24 to 19; Rep. Stephanie Murphy (D-FL) was the only member to cross party lines by casting a vote opposing the bill along with all Ways and Means Republicans. House and Senate tax proposals are being considered under a fiscal year 2022 budget resolution that provides reconciliation instructions for a package that currently adds up to about $3.5 trillion of spending and tax relief provisions, offset in part by corporate and individual tax increases.
Differences between the House tax proposals and forthcoming Senate tax proposals that are expected to be considered in coming weeks will have to be resolved before final legislation can be put to a vote in each chamber. Senate Finance Committee Chairman Ron Wyden (D-OR) and other Finance Committee Democrats have recently released a series of discussion drafts on business, international, and individual tax proposals. Congressional Democratic leaders are seeking to complete action on the legislation so it can be signed into law by President Biden before the end of this year.
The PwC Tax Insights below provides a high-level overview of some of the key business provisions contained in the Ways and Means Committee-approved legislation.
Also see this PwC Tax Insights for a high-level overview of some of the key provisions affecting individuals.