Broker Check

The White House Build Back Better Framework

October 29, 2021

Overview of tax provisions under the framework:


  • The Build Back Better framework includes a new surtax on the income of multi-millionaires and billionaires (including trusts and estates) – the top 0.02 percent of Americans. It would apply a 5 percent rate above income of $10 million, and an additional 3 percent above income of $25 million. The Build Back Better framework will also close the loopholes that allows some wealthy taxpayers to avoid paying the 3.8 Medicare tax on their earnings.
  • The Build Back Better framework will impose a 15% minimum tax on the corporate profits that large corporations—with over $1 billion in profits—report to shareholders.  This means that if a large corporation says it’s profitable, then it can’t avoid paying its tax bill. The framework also includes a 1% surcharge on corporate stock buybacks, which corporate executives too often use to enrich themselves rather than investing workers and growing the economy.


Overview of what is not included in the framework:


  • Transfer tax provisions (i.e., estate, gift, and GST)
    • No lower estate, gift or GST exemptions
    • No grantor trust provisions
    • Nothing regarding gain recognition at death or for gifts
    • No limitations on valuation discounts
  • Income tax provisions
    • No raising of the highest marginal income tax rate to 39.6%
    • No changes to capital gains tax rates
    • No IRC section 199A changes
    • No billionaires tax
    • No higher corporate tax rate (currently 21%)
    • No grantor trust provisions relating to income taxation
  • Retirement provisions
    • No limitations on large IRA accounts
    • No elimination of backdoor Roth IRAs
    • No auto enrollment plans


To read more on the White House build Back America Framework, see the White House briefing room summary.