Tax Proposals Under The "Build Back Better Act" Version 2.0

On October 28, 2021, the House Rules Committee released a revised version of H.R. 5376, the "Build Back Better Act." The revised bill makes significant changes to, and departures from, the tax proposals approved in the September 13, 2021 version (the "September version"),¹ not to mention brushing aside the Senate Finance Committee's "Billionaires Tax" proposal released on October 27, 2021.

What Is In

The bill adds several new provisions along with substantially modifying provisions—though keeping some intact—in the September version, including, but not limited to:

Individuals

• Surtax on High Income Taxpayers. Revises the September version's proposal to impose a 5% tax on modified adjusted gross income² in excess of $10 million ($5 million for taxpayers filing as married filing separately). An additional 3% tax would apply to modified adjusted gross income over $25 million ($12.5 million for taxpayers filing as married filing separately).