Pub. 11 2021-2022 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S www.coloradobankers.org 10 BY EIDE BAILLY, LLP T he White House recently released a fact sheet on President Joe Biden’s American Jobs Plan that includes several proposals affecting infrastructure, housing, workforce development and eldercare. It also suggests methods to pay for the $2.5 trillion costs of implementing the plan. The Made In America Tax Plan, the tax proposal portion of the American Jobs Plan, proposes an increase in corporate taxes, changes to international taxation regimes, elimination of particular preferences in the fossil fuel industry, and a minimum tax for very large corporations computed on book income. The plan does not include tax increases for individuals; however, the closing sentence of the fact sheet indicates additional ideas will be forthcoming that “makes sure the highest income individuals pay their fair share.” Has the American Jobs Plan passed Congress? Please note this proposed plan is simply a general outline with very little detail that Congress must pass before becoming law. Without Republican support, Democrats will need to rely on the budget reconciliation process to pass this plan. First, this legislation must be introduced in the U.S. House of Representatives. House Speaker Nancy Pelosi (D-Calif.) wants to pass a version of this infrastructure and tax plan through the House by July 4, 2021. The U.S. Senate is expected to act on the plan upon passage by the House, meaning it could pass the Senate as early as late July. Currently, the Senate is split evenly with 50 Democratic votes and 50 Republican votes. Passing the plan will require all 50 Senate Democrats voting to support the plan with Vice-President Kamala Harris then casting the tie-breaking vote to attain the required 51 vote simple majority under reconciliation. Based on currently available information, specific House committees expect to modify the plan. For instance, the current proposal does not repeal the $10,000 limit on the state and local tax (SALT) deduction. Several House Democrats have already indicated What is the American Jobs Infrastructure Proposal & What Taxes Would It Raise?