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Top 10 Revenue Raisers in the House-Passed Build Back Better Act

On Nov. 19, 2021, the U.S. House of Representatives passed the Build Back Better Act, which contains many of the major Biden administration policy proposals on health care, education, climate change, and other areas. To offset the cost of these proposals, the Joint Committee on Taxation has estimated that the bill contains $1.476 trillion in new federal revenues.

Many of the Build Back Better “offsets” proposed earlier in the year were not included (such as applying the payroll tax to incomes above $400,000, taxing capital gains as ordinary income above $1 million, and increasing the corporate rate to 28%), but several other significant proposals are in the bill.

The legislation now will be considered by the U.S. Senate, which is certain to make additional changes. However, it is likely that most of the proposed revenue increases will remain in any version of the Build Back Better Act considered by the Senate in the weeks ahead.

The table below lists the top 10 revenue raisers in the House-passed bill.

Provision, IRC section, and Effective Date

Revenue Impact 2022-31

Corporate alternative minimum tax (IRC § 55, 59, new § 56A) (tax years beginning after 12/31/22)

$ 318.9 bil.

Application of net investment income tax to trade or business income of certain high-income individuals (IRC § 1411) (tax years beginning after 12/31/21)

$ 252.2 bil.

Surcharge on high-income individuals (5% on AGI over $10 mil., 8% on AGI over $25 mil.) (new IRC § 1A, technical changes to §§ 453A, 876, 877, 904 962, 1291, 1301, 1398, 1446, 6015, 6225, and 7519) (tax years beginning after 12/31/21)

$ 227.8 bil.

Limitations on excess business losses of noncorporate taxpayers made permanent, with carryforward modifications (IRC § 461(l)) (tax years beginning after 12/31/20)

$ 160.3 bil.

Modifications to deduction for foreign-derived intangible income and global intangible low-taxed income (IRC § 172, § 250) (generally applies to tax years beginning after 12/31/22)

$ 144.3 bil

Excise tax on repurchase of corporate stock (new IRC § 4501) (repurchases of stock after 12/31/21)

$ 124.2 bil.

Modifications to base erosion and anti-abuse tax (IRC § 59A) (tax years beginning after 12/31/21)

$ 67.1 bil.

Modifications to inclusion of global intangible low-taxed income (IRC § 951A) (generally applies to tax years of foreign corporations beginning after 12/31/22, and tax years of U.S. shareholders in which taxable year of foreign corporation ends)

$ 57.0 bil.

Limitations on deduction for interest expense (IRC § 163(o), 163(j)) (tax years beginning after 12/31/22)

$ 27.9 bil.

Adjusted basis limitation for divisive reorganization (IRC § 361) (reorganizations occurring on or after date of enactment)

$ 17.8 bil.


$ 1,397.5 bil.


$ 78.6 bil.


$ 1,476.1 bil.

Other notable provisions include the following:

  • Expansion of constructive sales and wash sale rules to Digital Assets (IRC 1091) (sales, dispositions, and terminations after 12/31/21) ($16.8 bil.)

  • Modifications to foreign tax credit limitation (IRC § 904, 905, technical changes to §§ 250, 864, 901, 907, 6511) (generally applies to taxable years after 12/31/22) ($12.0 bil.)

  • Modification to the Portfolio Interest Exemption rules (IRC 871) (obligations issued after date of enactment) ($2.1 bil.)

  • Deduction for foreign source portion of dividends limited to Control Foreign Corporations (CFCs); modifications to rules for determining the status of foreign corporations as CFCs and for income inclusion under CFC rules (IRC 245A, new § 951B) (generally applies to distributions made after date of enactment) ($451 mil.)

Source: Estimated Budget Effects of the Revenue Provisions of Title XIII – Committee on Ways and Means, of H.R.5376, the “Build Back Better Act,” as Passed by the House of Representatives, Joint Committee on Taxation, JCX-46-21, Nov. 19, 2021.

Note: The Congressional Budget Office, in compiling an overall cost estimate for the bill, relies on the Joint Committee on Taxation to provide estimates of changes to the Internal Revenue Code.

©2022 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XI, Number 333

About this Author

Robert Mangas, Greenberg Traurig Law Firm, Washington DC, Government Policy, Energy and Environmental Law Attorney

Rob Mangas is Co-Managing Shareholder of the Washington, D.C. office and focuses his practice on advocacy before the U.S. Congress and federal agencies. He represents clients in a variety of different industry sectors, and is experienced in navigating U.S. House and Senate Rules and in legislative drafting.


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