As we look ahead in 2022, the potential Senate passage of the Build Back Better Act (BBB) is on hold as the Senate focuses on voting rights legislation. Senator Joe Manchin's (D-WV) Dec. 19, 2021 comments regarding his hesitation with the legislation have been a hiccup for the BBB. Manchin noted the package’s cost, the national debt, inflation, and the COVID pandemic as his apprehensions about the BBB. A 50-50 Senate means margins for passage of the bill are thin.
The House of Representatives bill, H.R. 5376, passed on November 19, 2021. It excludes a portion of the tax hikes from earlier drafts such as increases in the corporate tax rate, the individual rates, and the capital gains rate. It increases availability of the state and local income tax deduction which was limited in the Tax Cuts and Jobs Act of 2017 by increasing the deduction cap from the current $10,000 to $80,000 for those married filing jointly and extending the cap through 2030.
Going Forward
While the fate of the BBB is uncertain, Senate Majority Leader Chuck Schumer (D-NY) still plans to hold a vote in the future.
"The negotiations will continue with members of our caucus and with the White House on finding a path forward on Build Back Better," Schumer said from the Senate floor. "As I mentioned before Christmas, I intend to hold a vote in the Senate on BBB and we'll keep voting until we get a bill passed."
MarksNelson is watching developments in Congress closely for potential impacts and we will continue to provide updates.
