Home Passes Build Back Better


Early Friday morning, the United States House of Representatives approved President Biden’s broad social and climate spending proposal known as the Build Back Better Framework. Key provisions of the roughly $ 2 trillion bill (HR 5376) include comprehensive climate programs and tax incentives, paid family leave, a universal preschool, and subsidy increases under the Human Rights Act. affordable care. The bill also increases taxes for high income earners, establishes a Medicare drug price negotiation program, and extends the child tax credit for an additional year while making it permanently refundable.

SUMMARY1

Climate and clean energy: $ 555 billion – Includes investments and incentives for electric vehicles, including $ 100 million in state grants for the construction of electric vehicle infrastructure, and provides funding for high-speed rail, reduction of dangerous fuels, forest management, coastal restoration and soil conservation. Also includes funding for greenhouse gas reduction. Provides funds for lead remediation grants and replacement of lead water pipes. Includes provision to create a Civilian Climate Body to participate in environmental and climate projects. Increases costs for the oil and gas industry and provides equipment upgrade incentives for fuel companies and distributors to support the sale and storage of biofuels.

Universal Preschool and Child Care: $ 400 billion – Includes provisions to provide a free universal preschool for all 3 and 4 year olds. As part of this plan, states will receive federal funding to support a gradual expansion of income eligibility in fiscal year 2022 through fiscal year 2024. Also provides support for child care expenses – families earning less than $ 300,000 per year would spend no more than 7% of their income on child care; offers tax credits of up to $ 300 per child, per month.

Child tax credit: $ 200 billion – Extends the child tax credit for another year.

SEL cap: Raises the $ 10,000 cap on state and local government tax deduction to $ 80,000 through 2030. In 2031, the cap would drop to $ 10,000 and then expire.

Reduce health care premiums: $ 165 billion – Provides funding to reduce premiums for people covered by the Affordable Care Act.

Other health care provisions: extends Medicare coverage to cover hearing aids; provides funds for maternal health, community violence, disadvantaged farmers, nutrition and pandemic preparedness; places a cap ($ 2,000) on reimbursable Medicare Part D expenses for the elderly and places a cap of $ 35 per dose for insulin; establishes a Medicare drug negotiation program.

Home care: $ 150 billion – Provides funding for a Medicaid program to support home health care.

Affordable housing: $ 150 billion – Funding to increase housing affordability by building new rental and single-family homes and providing rent and down payment assistance.

Immigration: $ 100 billion – People living in the United States before January 2, 2011 would become eligible for renewable parole for five years after paying a few and completing security and background checks.

Worker training and higher education: $ 40 billion – Increase the value of Pell Grants and provide funding for grant programs and expanded federal financial aid for eligible students with DACA, TPS and DED status; invest in historically black colleges and universities (HBCUs) and Hispanic institutions and other institutions serving minorities.

Paid family and medical leave: Eligible workers would receive up to four weeks of paid leave to care for a child, another family member, or to recover from illness. Eligible workers would be entitled to the compensation within one year, starting in 2024. President Biden had initially proposed 12 weeks of paid leave.

The version that was sent to the House included a director’s amendment, which removed $ 2 billion in funding for administrative expenses related to the paid vacation program, among other changes.

Increase in income / Commercial arrangements:

  • 15% minimum tax on large corporations with declared income over $ 1 billion. US companies with foreign parent companies are expected to have revenues of at least $ 100 million.

  • Attempts to discourage profit shifting by multinational corporations, and a low taxed global intangible income rate of 15.8 and a foreign intangible income rate of $ 15.8.

  • A 1% tax on share repurchases by publicly traded US companies, including any subsidiaries.

  • Additional Enforcement Measures for Large Businesses and High Income Individuals at the Internal Revenue Service.

  • An additional 5% tax on those earning more than $ 10 million per year and another 3% tax increase on those earning $ 25 million or more.

  • Provisions to limit business losses for the very wealthy and adds a 3.8% Medicare tax for individuals earning more than $ 400,000 a year who did not pay tax previously.

HR 5376 is now heading to the US Senate, where it will likely undergo significant changes. Senate Majority Leader Chuck Schumer has indicated he intends to pass the bill by the Christmas recess, but he will need the support of moderate Democratic Senators Kyrsten Sinema (Arizona) and Joe Manchin (Virginia). -Occidentale), who have not yet pledged their support for the bill. If the Senate makes any changes, the amended measure would be sent back to the House for final approval.


1 REMARK: Figures listed when available and applicable. The numbers and monetary arrangements are subject to change as the bill progresses through the legislative process. The list below is not exhaustive, but covers most of the main provisions in each category.

Julianna Moyer also contributed to this article.


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