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Making Sense of Build Back Better For Banks

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Most of the tax changes being proposed would have less sweeping impact on most community banks than initially thought. Still, Adam Aucoin, CPA been counseling clients in the banking and financial services industry not to lose sight of these proposals completely.

Jan 7th 2022
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Build Back Better, the Biden Administration’s signature social spending bill, appears in limbo in its current form. But which tax proposals should banks and financial institution’s still have on their radar as we enter 2022?

In mid-November, the Biden administration celebrated the signing of the ambitious Infrastructure Investment and Jobs Act. Washington’s power brokers on the Democratic side of the aisle quickly turned their attention to Build Back Better.

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Iterations of Build Back Better from earlier this year included plans to raise the corporate tax rate, end fossil fuel subsidies and increase the global minimum tax. Another funding proposal that got a lot of ink earlier this fall was the Biden administration’s plan to have the IRS require banks and credit unions to automatically provide information on their customers’ bank accounts.

Well, after months of political wrangling, it appears likely that many of those major provisions will not appear in the final bill, if some iteration of the bill even passes at all. The bill brings to mind that famous aphorism about the weather in my home region of New England – if you don’t like it, wait a minute because it’s likely to change.

If something makes its way back into the bill or is revisited at a later time, we need to be ready to jump as quickly as we can to help them comply with new tax laws and lessen their tax burden. First, let’s look at how we can help advise clients on policies that aren’t in the bill…for now:

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