U.S. Congress Moves Forward On Budget Reconciliation, Infrastructure Plan

The U.S. House of Representatives last week approved a fiscal year 2022 budget resolution that triggers the legislative process to write Democrats’ $3.5 trillion domestic spending and tax bill. The resolution was approved on partisan, 220-212 vote.

House and Senate committees now have until September 15, 2021 to assemble the $3.5 trillion budget reconciliation bill, which is expected to include a host of Democratic labor, environmental, and health care priorities, along with several tax increases. As a reminder, the S-Corp Association estimates that these tax increases will cost U.S. businesses and families about $1.75 trillion.

MSCI urges its member company leaders and employees to call or write to their senators and members of Congress to urge them to vote against these tax increases if they are included in the budget reconciliation. Contact information for U.S. senators is here. Contact information for U.S. House lawmakers is here.

Before the budget resolution vote, House Speaker Nancy Pelosi (D-Calif.) agreed to moderate Democrats’ demands that the House hold a vote on a separate bipartisan infrastructure bill by September 27, 2021. (The Senate had approved infrastructure legislation before adjourning for its August recess.)

As Congress gets ready to take the next step on infrastructure, S&P released an analysis that found in real dollar terms, the $1.2 trillion physical infrastructure bill will create more in economic activity than it would cost. In particular, S&P estimates that a $1 trillion investment in infrastructure would add $1.4 trillion to the economy over an eight-year period — a fiscal multiplier of 1.4. In terms of employment, S&P found the infrastructure bill would create 883,600 jobs by 2030, and many of them “middle class.” S&P also estimates that per capita income would be $100.50 (10.5 percent) higher if the bill is signed into law.

The full analysis is available here.

MSCI member company employees and leaders can make your voice heard on infrastructure investment by using the American Society of Civil Engineers’ portal here.