Proposals to Increase Taxes on Pass-Through Entities Shelved
Over the past few weeks, we learned that Senator Joe Manchin (D-WVA) quietly resumed negotiations on a scaled-back “Build Back Better” bill that might have included provisions to increase taxes on pass-through entities, to address climate change, and reduce the costs of prescription drugs. Initial reports indicated that an agreement was reached on taxes. However, over the course of this past week, Senator Manchin withdrew his support for tax increases and climate change; only reform on prescription drug prices remains on the table at this time.
Vox, “Build Back Better May End Up a Health Care Bill, Thanks to Joe Manchin,” July 18, 2022
Forbes, “Joe Manchin Pulls the Plug on Biden’s Tax Increases. What Happens Next?” July 21, 2022
Potentially increasing taxes on pass-through entities is a concern for many TechServe Alliance members. Back in 2017, TechServe successfully worked with our members to ensure that staffing firm pass-throughs received the full benefits provided under the Tax Cuts and Jobs Act of 2017. We will continue to work with our members and Congress on this issue. Please contact the Government Affairs Team with any questions.