On Monday, Sept. 13, House Ways and Means Committee Chair Richard Neal (D-MA) introduced the final portion of the committee’s budget reconciliation recommendations. This alert provides a comprehensive summary and analysis of these provisions.
Overview
The latest section—Subtitle I, Responsibly Funding Our Priorities—contains tax increases on high-income individuals, corporate and international companies and funding to increase Internal Revenue Service enforcement, among other provisions. In addition to a section-by-section summary, the full text can be found here.
The tax code changes under this section would raise federal revenues to offset spending proposed by the rest of the budget reconciliation package. When it released the legislation, the Ways and Means Committee estimated that the bill contains $2.9 trillion in revenue raisers and $600 billion in economic growth. Together, Ways and Means Democrats claim the plan would fully offset the $3.5 trillion package, should Democrats elect to include that much spending.
Shortly after the committee released the text, however, the Joint Committee on Taxation (JCT) published an updated revenue estimate for the package that found it would generate $2.1 trillion over 10 years. The estimate changed to $871 billion in net new revenue when taking tax incentives into account, according to JCT.
Review
The Ways and Means Committee began its budget reconciliation markup on Thursday, Sept. 9. Since then, it has approved the following Subtitles as of this writing:
The Ways and Means Committee continued its markup on Tuesday, Sept. 13, when it resumed consideration of the following Subtitles:
The Brownstein Tax Policy Team has analyzed these Subtitles, with the exception of Subtitle I, here.
Next Steps
The Ways and Means Committee is expected to conclude its marathon markup on Wednesday, Sept. 15. Once the House Ways and Means Committee and the other House committees approve their respective budget recommendations, which House Democratic leaders have requested be completed by Sept. 15, the entire package will be compiled by the House Budget Committee and then sent to the House Rules Committee for the debate process for House floor consideration.
Click here for a full summary and analysis of Subtitle I.