Main areas of the Maison’s budget likely to change

If the parliamentarian does not agree, however, the offending provisions are vulnerable to a point of order requiring defenders to muster 60 votes to keep them in the bill.

‘SALT’

After a lengthy caucus debate, House Democrats finally agreed on a torturous path to ease a $ 10,000 cap on state and local tax deductions that primarily affects voters with a small number of voters. Blue states. The latest version would raise the cap to $ 80,000 but extend it until 2030, or five years after the current cap expires. Then, over the last year, the cap would drop back to $ 10,000 before expiring again.

Preliminary estimates suggest this small budget maneuver would raise about $ 14 billion over the decade, but provide up to $ 285 billion in tax benefits in the first five years, according to the Committee for a Responsible Federal Budget. . At the same time, this has a skewed effect on the distribution of taxes as part of the overall bill: According to the Tax Policy Center, around two-thirds of millionaire households could see their taxes reduced as part of the measure, far from campaign rhetoric about making sure the rich “pay their fair share.”

Overall, the tax increases for the remaining third – likely many of those earning more than $ 10 million who would be hit with a “surtax” – outweigh the smaller tax cuts. . But it’s still a problem in the Senate, where Budget Chairman Bernie Sanders, I-Vt., And Bob Menendez, DN.J., are working on an alternative to leave the “SALT” cap in place but phasing it out for the sake of it. those who earn somewhere above the neighborhood of $ 400,000 to $ 550,000.

Electric vehicles

The House bill would introduce a new consumer tax credit worth up to $ 12,500 for the purchase of electric vehicles to replace the current maximum credit of $ 7,500 which is phased out once that an automobile manufacturer sells more than 200,000 qualifying vehicles. The new credit would be refundable or fully available to consumers, even if they don’t have large enough tax bills to offset.