President Biden has presented a new, reduced, $1.75T infrastructure plan. The new plan gets rid of some of the rumored tax changes, and lays out planned ways to cover the costs.

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Proposed in Biden's Framework – to raise $1.75T (with expected $ to be raised.)  

• 15% Corporate Minimum Tax on Largest Corporations (reporting in excess of $1 Billion of income) - $325B

• 1% Surcharge on corporate buybacks  - $125B

• Global Minimum Tax on foreign income - 15% (i.e., increased GILTI rate) - $350B

• 5% surtax on income >$10M and 3% surtax on income >$25M - $230B

• Close Medicare Self-Employment Tax gap by strengthening the Net Investment Income (i.e., apply 3.8% tax to business income of sole proprietors/S-Corps) for those making over $400,000 - $250B

• Invest in IRS Enforcement to increase tax law compliance and revenue collection - $400B

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It’s clear that the onus of the tax increases is geared towards corporations, although the income surtaxes are targeted towards high-net worth individuals.

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Along with these proposals, the plan is no longer considering the following means of raising the needed funds:

• Corporate rate increase

• Top individual rate increase•Capital gains tax increase  

• All estate tax increases/unified gift and estate credit reduction

• Eliminating the Step up in Basis Upon Death

• Limitations on Alternative Investments in IRAs (“accredited investor qualification restrictions”)

• Carried interest modifications

• Qualified Small Business Stock

• Partnership/Exchanged Traded Funds provisions

• Bank account reporting to the IRS

• Mark-to-market capital gains taxation for billionaires

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In addition, specific retirement provisions have been dropped, especially those addressing Auto IRA, Saver’s Credit, Roth conversions, and Back Door Roth Conversions.