Download senate tax bill pdf

House of Representatives tonight passed H. The legislation includes tax-related provisions. Senate passed the same version of the bill on August 10, on a bipartisan basis. Read TaxNewsFlash. Thus, congressional action of this bill has been completed. Once the House forwards the bill to the White House, it will be ready for action by the president.

The other is H. Neither the House nor the Senate has yet voted on H. The bill [PDF 3. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. Close Notice of updates! Since the last time you logged in our privacy statement has been updated.

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Legislative update: Senate releases legislative text of bipartisan infrastructure bill U. Excluded from the tax are stock contributed to retirement accounts, pensions, and employee-stock ownership plans ESOPs.

Create a new limitation on interest expense deductions for certain multinational corporations, effective for tax years beginning after December 31, Extend or make permanent certain ARPA expansions of premium tax credits, including allowing higher-income households to qualify for the credits and boosting the subsidy for lower-income households.

Make tax changes targeted at cryptocurrency, including imposing rules related to common control and wash sales. Modify the base erosion and anti-abuse tax BEAT for multinational corporations. While the latest proposal steers clear of some of the major tax rate increases of the original Ways and Means bill, this proposal would still raise taxes on work and investment, disincentivizing productive activity.

We estimate the new House bill would reduce long-run GDP by about 0. The bill would also reduce the capital stock by about 0. The proposed 15 percent minimum tax on corporate book income is the most economically damaging provision in the bill, reducing GDP by 0. The international tax increases imposed on U. There is an additional negative impact on GNP that we have not modeled due to a lack of empirical studies arising from the incentive for U. In the years beyond , we assume the proposals have no impact on deficits to comply with the reconciliation process in the Senate.

We treat the spending as transfer payments with no associated impact on the economy in the long run. Note: We treat this spending as transfer payments with no associated impact on the economy in the long run. Items may not sum due to rounding. We relied on estimates provided by the JCT for tax provisions we did not model. To estimate the spending, we used estimates provided by the White House framework and other independent estimates.

Actual revenue could be less if, for instance, companies respond by reducing reported financial income. Actual revenue may be reduced to the extent companies choose to reduce stock repurchases and instead hold excess cash, for instance. On the other hand, revenue may be higher than our estimate if firms shift toward dividends in response to the new excise tax, as dividends are often taxable at ordinary income tax rates. Actual revenue may be reduced further to the extent high-income individuals engage in other avoidance techniques that result in less reported income.

On a dynamic basis, i. Over the long run, the updated House tax proposals would raise marginal income tax rates faced by higher earners and corporations.

In , however, the tax increases on high earners are more than offset by a more generous SALT deduction cap, which mostly accrues to households with higher incomes.

The proposals would increase the after-tax income of the bottom quintile by about The top 1 percent of earners would experience a 0. After the expanded CTC expires in , the bottom 40 percent of filers would see a smaller increase in after-tax incomes, reflecting the remaining expanded credits.

The bottom quintile would experience a 0. The top 1 percent would see a 3. On a long-term dynamic basis, the smaller economy reduces after-tax incomes relative to the conventional analysis and most of the expanded tax credits will have expired.

On average, the top 80 percent of tax filers would experience a drop in after-tax incomes. We use the Tax Foundation General Equilibrium Tax Model to estimate the impact of tax policies, including recent updates allowing a detailed modeling of U. The model produces conventional and dynamic revenue and distributional estimates of tax policy.

Conventional estimates hold the size of the economy constant and attempt to estimate potential behavioral effects of tax policy. Dynamic revenue estimates consider both behavioral and macroeconomic effects of tax policy on revenue.