10 FAQs about the Build Back Better Act
Last Updated: December 7, 2021
Why is the Build Back Better Act such a big deal?
The Build Back Better Act is comprehensive legislation to help Americans thrive as our country emerges from the worst of the COVID-19 pandemic and its economic fallout. If signed into law, this bill would lower the cost of health care; create jobs; invest in solutions to the climate and caregiving crises; unrig the tax code so corporations and the ultra-wealthy pay more of their fair share; and much more.
A summary of the bill’s major provisions is available here.
I’m worried that gas and my groceries are getting more expensive. Will the Build Back Better Act and more government spending make inflation worse?
No—according to the Roosevelt Institute, the bill will “both alleviate inflationary pressures and create millions of jobs.” And numerous economists say President Biden’s Build Back Better agenda will ease, not worsen inflation. You can read more here about how the Build Back Better Act will ease inflation by tackling supply chain challenges, bringing down household costs, and more.
Additionally, the Build Back Better Act is paid for, so it will not add to the federal deficit. According to the nonpartisan Congressional Budget Office (CBO), the bill will add $367.1 billion to the deficit over 10 years, but this estimate does not account for revenue generated once the Internal Revenue Service (IRS) is given the resources included in the legislation to pursue wealthy tax evaders. The Treasury expects enhanced enforcement to bring in at least $400 billion in revenue. By these estimates, the bill will ultimately reduce the deficit by $112.5 billion over 10 years.
It feels like prices keep going up and straining my family’s budget. Will the Build Back Better Act do anything to help me and my family get by?
Yes, and in major ways. The Build Back Better Act provides targeted assistance to help families deal with rising costs. For example, the bill would extend the enhanced Child Tax Credit provided through the American Rescue Plan ($300 monthly for each child under 6 and $250 monthly for kids 6-17) through 2022. This will give families up to $3,600 per child next year to offset the cost of groceries, gasoline, school supplies, and more. One study found that the Build Back Better Act will bring down costs for a two-parent family of four by as much as $7,400.
Rising prices are undeniably hurting working families nationwide, and the culprits are clear: the ongoing pandemic and corporations that have taken advantage of this health crisis to enrich their executives. The Build Back Better Act will offset current price hikes to relieve inflationary pressures as costs readjust.
A number of economists see current price spikes as a temporary adjustment after the economy came to a standstill and prices fell during the pandemic. This can be seen more easily when comparing prices over a longer period. While gas prices, for instance, have gone up a lot compared to last year, they have not yet hit the highs reached in 2011, 2012, 2013 or 2014.
These temporary price hikes are also exacerbated by corporate greed. Mega-corporations have a monopoly on many essential goods and can use that power to boost their bottom lines at our expense. As President Biden points out in a letter to the Federal Trade Commission (FTC) urging an investigation into gas price spikes, “prices at the pump have continued to rise, even as refined fuel costs go down and industry profits go up.” The president’s letter to the FTC is part of a series of antitrust actions that, in conjunction with the Build Back Better Act, tackle rising prices.
How is the government going to pay for the Build Back Better Act?
The short answer: by making corporations and the wealthiest begin to pay their fair share in taxes. For example, the Build Back Better Act imposes a minimum tax of 15 percent on profits reported by billion-dollar corporations, raising nearly $319 billion. It also raises nearly $228 billion through a 5 percent tax on income above $10 million a year, and an additional 3 percent tax on income above $25 million a year. These are just a few ways the bill helps level the playing field that has been skewed in favor of the wealthy rather than working families for too long.
Will my taxes go up because of the Build Back Better Act?
Only if your income is $400,000 a year or more. Americans making under $400,000 a year will not see their taxes go up at all because of the Build Back Better Act.
Didn’t Congress just pass a major infrastructure bill? How is this different?
In November, President Biden signed into law the Infrastructure Investment and Jobs Act, which provides new federal funding for projects like roads, bridges, drinking and wastewater infrastructure, and more. While these investments are overdue, they do not address many of American families’ most pressing needs, like the high costs of child care, prescription drugs, housing, the climate crisis, and more. In light of these challenges, Congress must pass this comprehensive bill to ensure families can make ends meet.
I heard the Build Back Better Act will provide parental leave. I don’t plan on having children, but I am a caregiver to my elderly parents. Does the Build Back Better Act do anything for me?
Yes. The Build Back Better Act provides, starting in 2024, up to four weeks of paid leave, calculated based on workers’ hours and average weekly pay, for new parents, Americans caring for a family member, or those with their own medical conditions. This provision is critical not just for new parents, but for all of us who will need to care for a loved one or ourselves in our lifetimes.
I’m glad Build Back Better helps parents with child care, paid leave, and the extended Child Tax Credit, but what does the Build Back Better Act do for me if I am an adult who does not have children? Will costs go down for me at all?
In addition to measures that will benefit every American, like those lowering the cost of prescription drugs, the Build Back Better Act has several provisions that will help adults without children who are low-to-middle income. For example, the bill:
Extends an enhanced Earned Income Tax Credit—a tax break for low-to-middle income Americans—through 2022.
Extends through 2025 more generous tax credits to bring down the cost of insurance premiums for Americans that purchase health insurance through the Affordable Care Act (ACA) marketplaces.
Provides premium tax credits to people living below the poverty line in states that have not expanded Medicaid through 2025.
I’m concerned about storms that seem to be getting worse every year and damaging my community. Does the Build Back Better Act do anything to deal with the climate crisis?
Yes, the Build Back Better Act will help tackle the climate crisis head-on, protecting our communities, homes and livelihoods and creating the green jobs of the future. To achieve this, the Build Back Better Act:
Creates jobs with a Civilian Climate Corps dedicated to fighting climate change.
Allocates $3 billion for community-led projects that address environmental and public health harms related to pollution and climate change.
Addresses the largest source of transportation greenhouse gas emissions by incentivizing the manufacture and purchase of union-made electric vehicles.
Permanently bans offshore oil and gas leasing along the entire Atlantic and Pacific coasts, as well as the Eastern Gulf of Mexico.
Prohibits drilling in the Arctic National Wildlife Refuge.
Creates a methane fee on oil and gas pollution.
Provides $12.5 billion for home energy efficiency and appliance electrification rebates and programs to reduce industrial building pollution, which accounts for 30 percent of carbon emissions in the United States.
Has the Build Back Better Act Become Law Yet
Not yet. The House of Representatives passed the Build Back Better Act on November 19, 2021. Now, the bill moves to the Senate, where it may be amended further. Should the Senate make any changes to the bill, the House will need to vote on the Senate-modified version before it can become law.