Senate Reconciliation Package Does Not Include Bank Tax Provisions

Posted: Aug 03 2022

Senate Democrats announced that they had reached an agreement on a massive reconciliation package that addresses portions of the Biden administration’s agenda for climate, health, deficit reduction and taxes. If the Senate parliamentarian agrees the bill meets the requirements for the reconciliation process, it can then advance with a simple majority vote instead of the two-thirds vote to overcome a filibuster.

According to the summary provided by Senate leadership, the draft legislation will raise approximately $739 billion in revenue through a combination of tax increases on corporations and selected taxpayers, prescription drug pricing reform and IRS tax enforcement. Approximately $433 billion will be expended on energy security and climate change and an extension of Affordable Care Act subsidiaries with $300 billion earmarked for deficit reduction.

While the bill does include a 15 percent corporate book minimum tax for businesses with more than $1 billion in revenue, several other provisions are not in the draft, including additional IRS reporting requirements and a corporate tax increase. The Senate is expected to debate the measure before the August recess.

To read a one-page summary of the legislation, visit: https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf