Build Back Better Act

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Nov 29th, 2021

Community, Elder Law, Income Taxes, Retirement Planning, Taxation, Taxes

The Build Back Better Act passed the U.S. House of Representatives on Friday, November 19, 2021 on a mostly party-line vote. The White House describes the key provisions as:

It lowers your costs to save you money on things like prescription drugs and health care and housing.
It gets Americans back to work by providing child care and care for seniors so workers can get back on the job knowing their loved ones have the care they need.
It cuts taxes for working families and the middle class – including extending the Child Tax Credit that is already helping the families of more than 61 million children and getting us closer to cutting child poverty in half this year.
It provides universal pre-Kindergarten for every 3-and 4-year old in America and makes education beyond high school more affordable – with historic investments in Pell Grants and Historically Black Colleges and Universities, Hispanic Serving Institutions and other Minority Serving Institutions, and Tribal Colleges and Universities.
Together with the bipartisan infrastructure law, it makes the most significant investment in our fight against the climate crisis ever by creating jobs that build a clean energy future for our children and grandchildren.

President Biden said:

Now, the Build Back Better Act goes to the United States Senate, where I look forward to it passing as soon as possible so I can sign it into law.

Without commenting on politics, hopefully all can agree we hope this controversial law will help America rebuild infrastructure without bankrupting the country. Nonetheless, for those concerned about taxes, the Journal of Accountancy describes key changes. Most tax changes impact corporations and high-income tax payers, but at least one change will benefit home-owners in States with high property taxes. It would:

increase the Sec. 164(b) limitation on the deduction for state and local taxes from $10,000 to $80,000 ($40,000 for married taxpayers filing separately and for trusts and estates) but would extend the limitation through 2031.