Preparing For Biden Administration Tax Changes

With expected passage in the next few weeks of the Biden Administration's first COVID-19 relief bill, the focus in Washington, D.C., will shift to a second budget reconciliation bill – Biden Administration tax changes. The tax changes are expected to be substantial and far-reaching, and to include corporate, individual and capital gains tax rate increases, international tax changes, and estate and gift tax changes.

Expected Timing of Biden Administration Tax Changes

Congressional committees in the Democrat-controlled House and Senate are already working on tax and budget proposals that will become part of a second budget reconciliation bill. President Biden's fiscal year 2022 budget is expected to be released in mid to late April, at which point the House and then the Senate will craft and approve a budget resolution to serve as the vehicle for the reconciliation process. Most expect committee action to begin in early May, with ultimate enactment in the fall. Only