While Congress and the White House aim to reach an agreement on the infrastructure by the summer, negotiations on changes to the tax law are continuing. While progress has been made since our previous warning on a bipartisan infrastructure deal and a global minimum tax, the details of most of the corporate tax proposals have not yet been decided.
The most pressing question, of course, remains: what will Senator Joe Manchin do? As a “swing vote” in the 50:50 Senate, the Democrats need all members on board to pass all laws through the reconciliation process, which will inevitably be less ambitious than the more progressive proposals that the Democratic caucus in the House of Representatives wants representatives. While a bipartisan infrastructure bill is more likely, a major corporate tax reform is likely to have to be passed through the reconciliation process.
Read the updates here on the key corporate tax provisions being negotiated as part of the larger negotiations.