While the framework is light on specifics, it does highlight how Democrats plan to raise revenue to pay for the party's proposed $1.75 trillion social spending package.
Earlier today, the White House released the reconciliation framework for its roughly $1.75 trillion social spending package. It is important to note that this is the Democrats' most recent framework and the content of the package could change before a final vote. Additionally, it is still unclear if this framework has the necessary support of Democrats in Congress to pass both the U.S. House of Representatives and the Senate in the coming weeks.
It was released today in an effort to convince Democrats in the House to pass a separate bipartisan infrastructure package before the end of the week.
While the framework is light on specifics, it does highlight how Democrats currently plan to raise revenue to pay for the package. For corporations, it would institute a 15% corporate minimum tax on large corporations and a 1% surcharge on corporate stock buybacks. Additionally, it includes a global minimum tax and a penalty rate for foreign corporations based in non-compliant countries.
The framework would also add a new surtax on multi-millionaires and billionaires. Furthermore, it would also expand the 3.8% net investment income tax for more taxpayers making over $400,000. The framework also reveals plans to raise $400 billion in revenue by making investments in the IRS to “close the tax gap," though it is still unclear how this will be done.
Please be sure to read next week's News & Views e-newsletter. As more details continue to emerge on the reconciliation package, the Big “I" will continue to update members on specific provisions and provide details on the association's advocacy efforts to push back against the package's most onerous small business policies.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.