That is likely to follow here, in the near future (as soon as Democrats can come to an agreement, themselves, as to what it should say).
The significant items in here for planners appear to be primarily in "Subtitle H-Social Safety Net"
Included there are...
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...(further) extensions/expansions of:
- Child Tax Credit (about 10% of the whole bill text related to the CTC🤯)
- Child and Dependent Care Credit
- EITC
There would also be a:
- Payroll tax credit for wages paid Child Care Workers
- New credit for Caregiver expenses
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There's also a bunch of stuff related to the Green New Deal, drug pricing and, believe it or not, traditional infrastructure (e.g., rehabs , sewage, water, buildings, etc.).
That said, this is not the bill text advisors + clients are anxiously awaiting.
Back to Ted Lasso!
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We now have a draft version of Subtitle I of Dems proposed legislation. And WOW is there a lot to discuss.
You might want to buckle up, b/c this is going to be a bumpy ride...
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...The final version of this bill isn't likely to come anywhere near the length of some more recent pieces of legislation, but Subtitle I (pictured below), which has the bulk of the tax changes most planners will be concerned with, still clocks in at over 225 pages...
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...Add in provisions that expand/enhance the Child Tax Credit + the Child and Dependent Care Credit and there are about 300 pages w/ major planning implications.
In fact, upon quick glance, if enacted, this would have a MUCH bigger impact on planning for some than TCJA! 👀
) its worth a reminder that this is 100% retirement stuff!
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So, there's actually a TON to digest here for planners.🙌
Certainly more than we got from CAA. Maybe even more, in total, than we got from the original SECURE Act (though no one provision will have the impact that the 'death' of the 'stretch' had).😯
Alright, I've got ahold of the 19-page "Fact Sheet" for the Biden "American Rescue Plan." (Thanks @TaxNotes!)
This is prob the best we're going to get for now, so I'm gonna use this to break down some of the proposals of the Plan relevant to tax and financial planning...
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The American Rescue Plan would provide additional stimulus checks of $1,400 per eligible person. Together w/ the $600 amounts that were/are being paid via the Appropriations Act in December, it brings the total value of recent payments to $2k/ eligible person.
Notably...
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... this is one policy initiative where Biden and Trump share a vision🤷♂️
The Plan also calls for expanding the types of people eligible for stimulus checks to include adult dependents (presumably to include many college students and elderly parents)...
Joe Manchin has come out strongly against $2,000 stimulus checks.💸💸💸
A quick thread on what this means ...
With the wins by Warnock and Ossoff earlier this week, and combined with independents who caucus with them, Dems will control 50 of the 100 seats.
And...
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in the event of a tie, the VP (who's also the President of the Senate) casts the deciding vote, effectively giving Dems control of the Senate.
Notably, though, Manchin IS a Democrat.
Thus, if Ds lose Manchin and Rs hold party line, they can't pass a bill increasing the...
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stimulus checks to $2k/person.
What makes this whole thing really interesting, and somewhat unique - at least lately - it that there are a bunch of R Senators that largely support the $2k stimulus checks (which notably were supported by Pres. Trump).