14 May 2025 Ways and Means approves tax reconciliation bill The House Ways and Means Committee held a markup beginning Tuesday, May 13 and approved a nearly 400-page bill encompassing the full array of tax provisions and revenue offsets meant to accompany extensions of Tax Cuts & Jobs Act (TCJA) provisions expiring at the end of 2025 in a budget reconciliation bill. The Committee debated and voted down a host of Democratic amendments before approving the bill 26-19 on May 14 at close to 8 a.m., after more than 17 hours of consideration. At the top of the markup, Committee Democrats challenged the two-part release of the bill — a TCJA-focused mark on Friday, then a more robust substitute amendment on Monday with items members claimed were not germane to the original version — and consideration of the bill over a budget window through 2034 rather than 2035, pursuant to the budget resolution. There was a lengthy walk-through with Joint Committee on Taxation staff and Committee staff, then member statements, and a break for House floor votes before consideration of amendments got underway close to 8 p.m. The revised Joint Committee on Taxation estimate, which estimates the total cost of the Ways and Means package at $3.7 trillion, is available here. A summary of the provisions as released on Monday is available here. Most of the debate was high level about the overall effort to extend tax cuts versus other priorities, then specific issues were addressed in amendments. Below is a summary of select amendments and votes. Member | Amendment details | Vote | Panetta (D-CA) | Strike debt limit increase | Not adopted, 19-26 | Boyle (D-PA) | Preserve current law baseline rather than current policy baseline | Not adopted, 19-26 | Horsford (D-NV) | Permanently extend Advance Premium Tax Credits | Not adopted, 19-25 | Suozzi (D-NY) | State and local tax (SALT) deduction cap of $80,000, paid for with a high-income tax increase | Not adopted, 17-25 | Thompson (D-CA) | Strike rollbacks of green energy tax credits | Not adopted, 19-25 | Sanchez (D-CA) | Terminate certain International Emergency Economic Powers Act (IEEPA) tariffs | Not adopted, 19-26 | Schneider (D-IL) | Increase the standard deduction to offset effects of tariffs | Not adopted, 18-26 | DelBene (D-WA) | Increase Child Tax Credit and make fully refundable | Not adopted, 19-25 | Sewell (D-AL) | Extend Advance Premium Tax Credit to non-Medicaid expansion states and those affected by cuts | Not adopted, 19-25 | Doggett (D-TX) | Ensure ACA enhanced tax credits coverage remains, allow those losing coverage under Medicaid to enroll in ACA marketplaces | Not adopted, 19-26 | Thompson (D-CA) | Strike provision to eliminate tax on silencers | Not adopted, 19-25 | Larson (D-CT) | Social Security reform | Not adopted, 19-26 | Doggett (D-TX) | Deny tax benefits under the bill to those with incomes above $400,000 | Not adopted, 19-26 | Chu (D-CA) | Deny tax benefits under the bill to those with incomes above $10 million | Not adopted, 19-26 | Beyer (D-VA) | Reinstate 39.6% tax rate for those with incomes above $100 million | Not adopted, 19-26 | Gomez (D-CA) | Reinstate 39.6% tax rate for those with incomes above $1 billion | Not adopted, 19-25 | Moore (D-WI) | Replaces 199A deduction with a small business deduction and income phaseout | Not adopted, 19-26 | Davis (D-IL) | Reimburse childcare costs | Not adopted, 19-25 | Evans (D-PA) | Make sure millionaires face paperwork requirements regarding address and work verifications | Not adopted, 19-25 | Sanchez (D-CA) | Renew Trade Adjustment Assistance | Not adopted, 19-24 | Gomez (D-CA) | Ensure paid leave credit helps working families | Not adopted, 19-25 | Horsford (D-NV) | Addressing trade impact on tourism | Not adopted, 18-25 | Doggett (D-TX) | Deletes voucher provisions | Not adopted, 18-24 | Sewell (D-AL) | Strike university endowment tax increase | Not adopted, 19-24 | DelBene (D-WA) | Tax credit for fertility expenses | Not adopted, 19-24 | Beyer (D-VA) | Carried interest treated as ordinary income | Not adopted, 18-25 | Panetta (D-CA) | Increase Medicare payments at rate of medical inflation | Not adopted, 19-25 | Plaskett (D-VI) | Bill can't take effect until CBO assures benefits are distributed across those earning under $400,000 | Not adopted, 19-25 | Gomez (D-CA) | Stop health care premium increases for mothers and children | Not adopted, 19-24 | Horsford (D-NV) | Veterans housing assistance funded by stock buyback excise tax increase | Not adopted, 19-24 | Gomez (D-CA) | Starter home tax assistance | Not adopted, 19-25 | Horsford (D-NV) | Increase startup tax deduction | Not adopted, 19-25 | Schneider (D-IL) | Scrap bill and start over | Not adopted, 19-25 |
Materials related to the markup are available here. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Washington Council Ernst & Young - Any member of the group at (202) 293-7474.
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Document ID: 2025-1053 |
