On October 28, 2021, ahead of a meeting of the House Rules Committee, Democratic lawmakers released updated tax provisions of an emerging budget reconciliation package (the “Reconciliation Bill”). The Reconciliation Bill maintains many of the substantial changes to the business, individual and international income tax regimes proposed last month by the House Ways and Means Committee (the “Ways and Means Bill”). However, significant provisions of the Ways and Means Bill have been removed, including increases to the ordinary income and capital gains rates applicable to individuals, an increase to the corporate tax rate, changes to the taxation of carried interest, substantial limitations on the deduction for qualified business income earned through passthrough entities, and substantial changes to the taxation of grantor trusts. Some important features of the Reconciliation Bill are outlined below. A discussion of the Ways and Means Bill is available here.