On Saturday, September 25, 2021, the House Budget Committee voted to advance a $3.5 trillion spending package to the House floor for debate. The House Ways and Means Committee and the Joint Committee on Taxation had previously released summaries of proposed tax changes intended to help fund the spending package. Many of these provisions focus specifically on businesses and high-income households.
Expect these proposals to be modified; some will likely be removed and others added as the legislative process continues. As we monitor progression through the legislative process, though, here are some highlights from the previously released proposed provisions worth noting.
1. Individual income tax rates
If you work for Corporate Employee and are in your Retirement Years this information will apply to you specifically. The top tax rate is proposed to return to 39.6% from 37%, where it has been since the 2018 implementation of the Tax Cuts and Jobs Act. The bracket would apply to individuals earning more than $400,000 or $450,000 for married couples filing jointly.
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