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August 25, 2021

Budget resolution cleared by House, paving way for reconciliation

Yesterday, the House approved the Senate-passed FY 2022 budget resolution. Approval of the budget resolution with reconciliation instructions paves the way for a potentially $3.5 trillion package of Democratic priorities addressing “human infrastructure,” paid for in part by tax increases, to pass the Senate with a simple majority vote, but likely not before fall. A WCEY Tax Alert has details.

In a related development, Tax Notes is reporting that Senate Finance Committee Chair Ron Wyden (D-OR), Sen. Sherrod Brown (D-OH) and Sen. Mark Warner (D-VA) released a draft bill proposing changes to the international tax system. The legislation would overhaul the Tax Cuts and Jobs Act's global intangible low-taxed income regime, base erosion and anti-abuse tax and foreign-derived intangible income regime. More details are forthcoming.