Treasury Summarizes Budget Tax Proposals
Treasury Summarizes Budget Tax Proposals
- Institutional AuthorsU.S. Department of Treasury
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- Tax Analysts Document Number2021-21825
- Tax Analysts Electronic Citation2021 TNTF 104-242021 TNTI 104-292021 TNTG 104-37
Administration's FY2022 Budget Tax Proposals Will Promote Shared Growth and Prosperity
May 28, 2021
“Today's budget, which includes the American Jobs and Families Plans, makes the necessary investments in both our infrastructure and our people to ensure the post-pandemic chapter of our history is a strong and prosperous one. Importantly, too, this budget puts our country on a long-term fiscally sustainable path through fair and efficient tax reform.”
– Secretary of the Treasury Janet L. Yellen
WASHINGTON — Today, President Biden released his first Budget which makes historic investments that will help the nation recover from the pandemic and lay the foundation for shared growth and prosperity for the future. The FY2022 Budget proposes essential investments to prioritize infrastructure, clean energy, and research and development, providing a strong foundation for American job creation.
Under President Biden, America has started to recover from the pandemic. The economy is growing and creating jobs, unemployment claims have dropped, schools are reopening, and more than half of American adults are fully vaccinated. The proposed Budget includes proposals like the American Jobs Plan and the American Families Plan that will move the country past where it was pre-pandemic and rebuild a new American economy that invests in the potential of every American and makes it easier for families to enter and stay in the middle class.
The Budget provides a fiscally responsible path for delivering a stronger, more prosperous economy. New public investments are coupled with additional revenue measures that ask the highest income Americans and large corporations to pay their fair share and that make our tax system more efficient and equitable. The measures do not increase taxes on anyone making less than $400,000. Under the Budget's proposals, the real cost of Federal debt payments will remain well below historical levels throughout the coming decade.
Alongside the Budget, today, the U.S. Department of the Treasury released a key document that explains the Administration's revenue proposals included in the Budget — the General Explanations of the Administration's FY2022 Revenue Proposals, or “Greenbook.” The Greenbook further describes revenue measures previously announced by President Biden, including:
AMERICAN JOBS PLAN
Reform Corporate Taxation
Raise the Corporate Income Tax Rate to 28 Percent
Revise the Global Minimum Tax Regime, Disallow Deductions Attributable to Exempt Income, and Limit Inversions
Reform Taxation of Foreign Fossil Fuel Income
Repeal the Deduction for Foreign-Derived Intangible Income (FDII)
Replace the Base Erosion Anti-Abuse Tax (BEAT) with the Stopping Harmful Inversions and Ending Low-Tax Developments (SHIELD) Rule
Limit Foreign Tax Credits from Sales of Hybrid Entities
Restrict Deductions of Excessive Interest of Members of Financial Reporting Groups for Disproportionate Borrowing in the United States
Impose a 15 Percent Minimum Tax on Book Earnings of Large Corporations
Provide Tax Incentives for Locating Jobs and Business Activity in the United States and Remove Tax Deductions for Shipping Jobs Overseas
Support Housing and Infrastructure
Expand the Low-Income Housing Tax Credit
Provide Neighborhood Homes Investment Tax Credit
Make Permanent the New Markets Tax Credit (NMTC)
Provide Federally Subsidized State and Local Bonds for Infrastructure
Prioritize Clean Energy
Eliminate Fossil Fuel Tax Preferences
Extend and Enhance Renewable and Alternative Energy Incentives
Provide Tax Credit for Electricity Transmission Investments
Provide Allocated Credit for Electricity Generation from Existing Nuclear Power Facilities
Establish New Tax Credits for Qualifying Advanced Energy Manufacturing
Establish Tax Credits for Heavy- and Medium-Duty Zero Emissions Vehicles
Provide Tax Incentives for Sustainable Aviation Fuel
Provide a Production Tax Credit for Low-Carbon Hydrogen
Extend and Enhance Energy Efficiency and Electrification Incentives
Provide a Disaster Mitigation Tax Credit
Expand and Enhance the Carbon Oxide Sequestration Credit
Extend and Enhance the Electric Vehicle Charging Station Credit
Reinstate Superfund Excise Taxes and Modify Oil Spill Liability Trust Fund Financing
AMERICAN FAMILIES PLAN
Strengthen Taxation of High-Income Taxpayers
Increase the Top Marginal Income Tax Rate for High Earners
Reform the Taxation of Capital Income
Rationalize Net Investment Income and Self-Employment Contributions Act Taxes
Support Workers, Families, and Economic Security
Make Permanent the American Rescue Plan Expansion of Premium Tax Credits
Make Permanent the Expansion of the Earned Income Tax Credit (EITC) for Workers Without Qualifying Children
Make Permanent American Rescue Plan Changes to the Child and Dependent Care Tax Credit
Extend the Child Tax Credit Increase Through 2025 and Make Permanent Full Refundability
Increase the Employer-Provided Childcare Tax Credit for Businesses
Close Loopholes
Tax Carried (Profits) Interests as Ordinary Income
Repeal Deferral of Gain from Like-Kind Exchanges
Make Permanent Excess Business Loss Limitation of Noncorporate Taxpayers
Improve Compliance
Provide the IRS the Resources to Address Sophisticated Tax Evasion Through Sustained, Multi-Year Mandatory Appropriation
Introduce Comprehensive Financial Account Reporting to Improve Tax Compliance
Improve Tax Administration
Increase Oversight of Paid Tax Return Preparers
Enhance Accuracy of Tax Information
Expand Broker Information Reporting with Respect to Crypto Assets
Address Taxpayer Noncompliance with Listed Transactions
Modify Tax Administration Rules
Authorize Limited Sharing of Business Tax Return Information to Measure the Economy More Accurately
- Institutional AuthorsU.S. Department of Treasury
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- Tax Analysts Document Number2021-21825
- Tax Analysts Electronic Citation2021 TNTF 104-242021 TNTI 104-292021 TNTG 104-37