On 5 November 2021, the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act. The Senate had previously approved the same version of the bill, which is now ready for President Biden’s signature. The bill provides for USD 550 billion in infrastructure improvements to the country’s roads, bridges, highways and internet connections, and includes a few tax-related provisions (e.g., information reporting requirements will be expanded for services that effectuate a transfer of digital assets (including cryptocurrency) and digital assets will be added to the rules requiring businesses to report cash payments exceeding USD 10,000).
After months of negotiations, on 28 October 2021, the White House announced a framework for President Biden’s Build Back Better agenda, a USD 1.75 trillion package of social infrastructure measures paid for by tax increases. The measures are in addition to those previously approved by the Senate in the transportation-related USD 1 trillion bipartisan infrastructure bill. In reaching the framework, both moderate and progressive Senate and House Democrats have been forced to compromise on certain priorities. Following the announcement, the Rules Committee of the U.S. House of Representatives released a rewrite of their Build Back Better Act.
The announced framework includes the following spending measures:
Key provisions excluded from the announced framework include paid family leave and Medicare coverage for dental and vision benefits. The framework also does not include key climate change measures that would reward electricity plants that use clean energy instead of fossil fuels, nor does it include provisions that would allow Medicare to negotiate lower prices for prescription drugs.
To pay for the social spending measures, the framework includes the following tax increases:
We will be closely following the progress of the proposed legislation as it makes its way through Congress. See also the U.S. Tax Policy Watch, a resource hub for the latest federal tax policy and legislative materials, including insights, alerts and videos and the Federal Tax Legislative Proposal Tracker, a side-by-side comparison of current tax law and legislative proposals.