This morning, President Biden proposed a framework agreement for the Build Back Better Act that contains $1.75 trillion in topline spending and $1.995 trillion in spending offsets (including $400 billion relating to IRS compliance, which may not count entirely as revenue under the budget rules).
The agreement, which has not received official sign off from certain key lawmakers, contains the following proposed spending priorities and offsets:
|
Policy
|
Cost
|
|
Child care and preschool
|
$400 billion
|
|
Home care
|
$150 billion
|
|
Child tax and earned income tax credits
|
$200 billion
|
|
Clean energy and climate investments
|
$555 billion
|
|
ACA credits, including in uncovered states
|
$130 billion
|
|
Medicare hearing
|
$35 billion
|
|
Housing
|
$150 billion
|
|
Higher education and workforce
|
$40 billion
|
|
Equity and other investments
|
$90 billion
|
|
TOTAL
|
$1.750 trillion
|
|
Immigration
|
$100 billion
|
|
Offsets
|
Revenue
|
|
15% corporate minimum tax on large corporations
|
$325 billion
|
|
Stock buyback tax
|
$125 billion
|
|
Corporate international reform
|
$350 billion
|
|
AGI surcharge on the top 0.02%
|
$230 billion
|
|
Close Medicare tax loophole for the wealthy
|
$250 billion
|
|
Limit business losses for the wealthy
|
$170 billion
|
|
IRS investment to close the tax gap
|
$400 billion
|
|
Prescription drugs: repeal rebate rule
|
$145 billion
|
|
TOTAL
|
$1.995 trillion
|
President Biden is speaking with lawmakers on Capitol Hill this morning to outline the proposal and garner support among the various factions of the Democratic conference.
Please contact a member of the Brownstein Tax Policy Team for any questions or more information.