Ways and Means Committee Revenue Provisions for Reconciliation Bill Raise Corporate and Individual Tax Rates, Caps Pass-Through Deduction
This morning, the House Ways and Means Committee released the text of the substitute amendment providing details on how they plan to pay for the $3.5 trillion reconciliation bill. Among other tax provisions, of particular interest to SWACCA, the amendment calls for: (1) an increase in the corporate tax rate from 21 percent to 26.5 percent; (2) an increase to the top individual tax rate from 37 percent to 39.6 percent; and (3) capping the maximum allowable deduction under section 199A (pass-through deduction) at $500,000 for a joint return, $400,000 for an individual return, $250,000 for a married individual filing a separate return, and $10,000 for a trust or estate beginning January 1, 2022.
The House Ways and Means Committee is set to meet tomorrow, September 14, 2021 and Wednesday, September 15, 2021 to mark up these and other tax provisions.
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