August 12, 2022
Update: President Joe Biden signed the legislation into law on August 16, 2022.
Legislation that will increase the amount of taxes paid by some taxpayers will soon become law.
The House of Representatives on August 12th passed the "Inflation Reduction Act of 2022" (formerly known as Build Back Better). The Senate approved the same bill on August 7th.
President Joe Biden is expected to sign the measure into law. The White House has yet to announce a date for when the signing ceremony will occur.
The tax increases are projected to fall on large corporations and taxpayers earning at least $200,000 a year, according to the Joint Committee on Taxation, which determines the revenue impact of tax legislation for Capitol Hill.
What’s in the Bill:
The following provisions are in the legislation (not inclusive):
The amount of revenue raised or saved by these provisions is projected to cover the cost of enacting several energy-related provisions, extend to 2025 the Affordable Care Act’s enhanced premium tax credit (which currently scheduled to expire at the end of this year), and reduce the federal government’s deficit.
A summary of the energy-related provisions in the bill is here.
The legislative text of the bill is here.
It took Congress roughly a year-and-a-half to pass this bill.
What began as the $4 trillion combined American Jobs Plan and American Families Plan in the spring of 2021 later morphed into the $2 trillion Build Back Better Act. The House passed it in November. Then Sen. Joe Manchin(D-W.Va.) killed it off just in time for Christmas. It was revived this spring and early summer Build Back Manchin (yeah, we won’t use that again), only to be rejected again by Manchin. But Schumer and the West Virginia Democrat brought it back once more as the Inflation Reduction Act in mid-July, totaling about $750 billion. That’s the legislation the House is voting on today.
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