In the US, on 24 August 2021, the House voted 220 to 212 to approve the Senate-passed fiscal year 2022 budget resolution that provides reconciliation instructions for spending and tax relief provisions that would be offset in part by corporate and individual tax increases. The House action also calls for a House vote, without amendments, on September 27 on the bipartisan infrastructure bill recently approved by the Senate.
With final passage of the budget resolution, House and Senate committees, including the House Ways and Means Committee and Senate Finance Committee, can begin drafting reconciliation legislation. The pending budget resolution sets a non-binding deadline of September 15 for committees to draft and approve legislation.
House Ways and Means Committee Chairman Richard Neal (D-MA) has indicated that he will try to meet the September 15 deadline for reporting reconciliation legislation.
Senate Finance Committee Chairman Ron Wyden (D-OR) also is preparing for action on a reconciliation bill in his committee with the expected release on August 25 of statutory text for international tax proposals to be considered by the Finance Committee.
Action item: The House and Senate tax committees are preparing to act on legislation that would increase corporate and individual tax rates and make other significant changes to current tax law. Stakeholders should continue to communicate with policy makers on the potential effects of tax increase proposals on their employees, job creation, and investments in the United States.