Some tax proposals you may be interested in are NOT in the US House bill.
Key omissions:
The bill omits many extreme provisions that were proposed throughout the process, including:
- Repeal of like-kind exchanges
- A corporate rate increase
- Individual ordinary and capital gains rate increases (apart from the AGI surtax)
- A cap on pass-through deductions under Section 199A
- A proposal to require “billionaires” to mark-to-market tradeable assets
- Carried interest changes
- Estate and gift tax changes and the repeal of step-up in basis of inherited assets
- IRS bank and financial account reporting
- A carbon tax
- Repeal of oil and gas tax incentives
It is possible that some of these proposals could be resurrected, much like the IRA changes were dropped from the package and then added back (see our top story in the Note & Real Estate News section below).
Estate and gift tax changes could be a target along with carried interest. If proposals like the minimum tax on book income run into opposition, or revenue needs arise, corporate and individual rate changes could also be considered if Sen. Sinema can be convinced to budge on her objections.
The mark-to-market proposal appears too fraught with administrative problems to succeed, and Sen. Manchin has been a hard “no” on the carbon tax and repealing oil and gas incentives.
The IRS reporting expansion has also proven unpopular, though Treasury has pushed it hard. It appears unlikely Congress would target Section 199A if corporations aren’t facing a rate increase.
