Build Back Better Act Stalled
The Build Back Better Act (BBB), which contains several key items of President Biden's legislative agenda, has effectively been shelved indefinitely. With the Senate split 50/50, every vote was needed to ensure passage. Senator Joe Manchin (D-WV) on December 19 posted a statement to his website indicating his opposition and cited several factors, including the cost, effect on the national debt, inflation, and the Covid-19 pandemic, though he did not delve into specific components he found objectionable.
HHM previously reported on the proposed tax legislation changes released by the House Ways and Means Committee, including changes to individual, corporate, and capital gains tax rates. Many of those proposed changes did not make it into the final bill, H.R. 5376, passed by the House on November 19. Included in the House bill was an increase to the limit on State and Local Tax (SALT) deductions from $10,000 to $80,000 for Married Filing Joint taxpayers through 2030.
Senate Majority Leader Chuck Schumer (D-NY) issued a statement suggesting the Senate will nonetheless move forward with a vote on the legislation early in the New Year. However, it appears highly unlikely there will be anything passed and sent to President Biden's desk for signature in its current form.
As of this writing, there have been no major legislation changes affecting 2021 or 2022 since our last overview of the BBB Act. HHM will continue to monitor for updates and stay abreast of any proposed or impending tax legislation changes as they become available.