Infrastructure Bill Update
On Tuesday night, Senate Majority Leader Chuck Schumer announced that the Senate Democrats have agreed to a $3.5 trillion spending/tax plan. Schumer indicated that the bill would fund every major program that President Biden had laid out in the the American Jobs Plan and American Families Plan. Details are expected to be announced later today.
The agreement would allow Democrats to pass the bill through budget reconciliation, which would only require 50 Democratic votes with Vice President Harris’ tie-breaking vote.
It’s also been a few weeks since President Biden announced an agreement with a group of Senators on the $1.2 trillion ($579 billion of new spending) bipartisan infrastructure bill. After the agreement was announced, there was indications that the bipartisan infrastructure bill would be tied to the Democrat tax spending plan. Schumer indicated on Tuesday that the $3.5 trillion agreement with the bipartisan infrastructure deal totaled roughly $4.1 trillion of new spending.
While the bipartisan infrastructure deal didn’t include any tax increases to pay for the bill, it is expected that the $3.5 trillion spending/tax plan would include some tax increases. With the voting margin razor thin, some Democrat Senators believe any bill should be paid for and not increase the Federal deficit.
Schumer indicated there would be votes on both bills before the Senate leaves for August recess. Stay tuned to CLAconnect.com for further updates.
Sources: Bloomberg Tax, Wall Street Journal, The Hill
Andy is a CPA and trusted advisor with 15 years of experience providing tax, accounting, assurance, and consulting services to transportation industry owners and operators. He is a tax principal with CLA in the Minneapolis, MN office. He also consults with high net worth individuals and owners of closely-held transportation businesses on all aspects of tax planning, estate planning, and retirement planning. Andy is also the tax leader for transportation industry across CLA.
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