On September 13, the House Ways and Means Committee and the Joint Committee on Taxation released drafts of proposed tax legislation and estimated budget effects of taxes under the $3.5 trillion budget reconciliation bill.  Many of the provisions in the draft legislation are familiar from President Biden’s American Families Plan and American Jobs Plan and Treasury’s Green Book released earlier this year.    

In this session, Cherry Bekaert’s Tax Beat hosts, Brooks and Sarah, walk through highlights of the draft legislation including proposed tax rate changes and the taxpayers who may be impacted.  They also discuss surprises in the draft bill that were not mentioned in the earlier proposals from President Biden, and the effective dates for various provisions.  To close out the discussion, Brian Dill, partner and leader of the Firm’s International Tax Practice Team, joins in for a discussion of the proposed legislative changes to FDII, GILTI, foreign tax credits and other tax provisions impacting companies operating within and outside of the U.S.   

Chapter Marks:

• 01:30     Background – legislative process - $1.2 T infrastructure
• 08:02     Tax rate changes (effective for tax years beginning after 12/31/2021)
• 11:13     Capital gains (generally effective for transactions on or after September 13, 2021) 
• 14:42     Taxing income from a pass-through business (effective for tax years beginning after 12/31/2021)
• 20:01     Estates and trusts (generally effective for estates and gifts arising after 12/31/2021)
• 22:25     Mega-IRAs (generally effective for tax years beginning after 12/31/2021)
• 24:39     Other Selected Provisions
• 26:30     International Tax Provisions