The House takes a look at a $3.5 trillion budget resolution approved by the Senate.
The National Lumber and Building Material Dealers Association (NLBMDA) reports that the House of Representatives will return to Washington today to take up a $3.5 trillion budget resolution which was first approved by the Senate last week.
The resolution is the first step in the budget reconciliation process which directs committees in both the House and Senate to begin drafting a bill that could spend up to $3.5 trillion on several legislative initiatives supported by President Biden and congressional Democrats.
In non-binding reconciliation instructions released last week, Democrats have instructed the tax-writing committees to examine tax increases on individuals making over $400,000 per year and corporations.
Ahead of the vote, NLBMDA sent a letter to the House Ways and Means Committee and Senate Finance Committee reiterating its strong opposition to any tax increases on America’s lumber and building material dealers in the FY 2022 budget reconciliation process.
As the national voice of the LBM industry, the letter highlights NLBMDA’s positions on several tax proposals listed below that would have a negative impact on lumber and building material dealers:
Oppose the repeal or reduction of the existing 20% pass-through deduction;
Oppose increases to personal income tax rates;
Oppose increases to the corporate income tax rate;
Oppose changes to the existing estate tax exemption and “step up in basis” provision;
Oppose tax increases on capital gains; and
Restore the state and local income tax (SALT) deduction.
Senate and House Democratic leaders have given their respective committees until Sept. 15 to draft a final budget reconciliation bill for consideration. Budget reconciliation bills only require a simple majority of the vote in both the House and Senate for passage.
The NLBMDA said that it will continue to lobby Congress against all tax increases on LBM dealers and will be following up with House and Senate committees on additional industry priorities in the coming weeks.
NLBMDA is encouraging members to utilize the Grassroots Action Center to contact their legislators in Congress and urge them to oppose tax increases in the FY 2022 budget reconciliation bill.