Treasury has pledged to release its detailed explanation of the Biden administration’s tax proposals on May 28, though that date could still slip.
The Treasury report is part of the White House budget process, and should finally flesh out many of the tax proposals that President Joe Biden has been discussing for months. Still, the report will represent only start of the legislative process, as congressional Democrats will have significant influence and are facing razor-thin majorities in both the House and Senate. The Senate Finance Committee is hoping to mark up on energy tax legislation on May 26, but that date could also slip.
There has also been increasing interest in moving bipartisan infrastructure legislation. Some Republicans have recently met with the White House about the possibility. Senate Minority Leader Mitch McConnell, R-Ky., has drawn a hard line in refusing to consider tax increases, so any agreement would likely represent only a partial solution for Democrats. The administration would likely pursue a separate partisan package with many of the tax increases and other initiatives Republicans reject. It’s unclear if Republicans would still engage in negotiations if Democrats pursue a two-tract approach.
Washington National Tax Office
+1 202 861 4144
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.