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1 1 (November 24, 2021)

handle is hein.crs/goveewu0001 and id is 1 raw text is: SCongressional aResearch Service Changes in After-Tax Income from Tax Provisions in the Build Back Better Act (BBBA; H.R. 5376) -Distributional Analysis November 24, 2021 Distributional analysis can illustrate how changes in tax policy may affect the economic well-being of different taxpayers. Broadly, distributional analyses can be used to examine how system-wide tax burdens are shared across taxpayers, or the fairness of the tax system. The Joint Committee on Taxation (JCT) regularly prepares distributional analyses of major tax proposals. One useful metric for understanding the impact of tax policy on taxpayers' well-being is the percentage change in after-tax income. This can be calculated as an extension of JCT's distributional analyses. On November 23, 2021, JCT released a distributional analysis of the Build Back Better Act (BBBA; H.R. 5376), as passed in the House. (The tax provisions in this version of the BBBA are described in this CRS report.) An earlier distributional analysis, released on September 14, 2021, provided information relating to the House Ways and Means Committee's budget reconciliation legislative recommendations, an earlier version of the BBBA (described in this CRS report). This Insight compares the changes in after- tax income expected to result from the House-passed BBBA (Figure 1) and the earlier version of the BBBA considered by the Ways and Means committee in September (Figure 2). Changes are relative to current law, which assumes that the temporary provisions enacted as part of P.L. 115-97 (commonly referred to as the Tax Cuts and Jobs Act [TCJA]) expire at the end of 2025, as scheduled. Congressional Research Service https://crsreports.congress.gov IN11809 CRS INSIGHT Prepared for Members and Committees of Congress - F, tj - 1iij