House Passes Build Back Better Act

Here's a summary of the tax provisions in the Build Back Better Act, as passed by the House.

I. Introduction

On November 19, 2021, the House of Representatives passed the Build Back Better Act (the BBBA). If enacted in its current form, the legislation would, among other things:

• establish a minimum corporate tax based on book income;
• raise income tax rates for high-income individuals;
• expand the deductibility of state and local taxes against federal taxes;
• impose new limitations on interest deductions for large corporations; and
• increase U.S. taxes on foreign earnings of multinationals.

Unlike an earlier proposal, which we discussed here, the version of the BBBA that the House passed would not increase the "headline" corporate or individual income tax rates or curtail the tax benefits of carried interests.