The US Treasury on May 28 released the much-anticipated 'General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals' ('Green Book'). The Green Book serves as a guidepost for the Administration’s proposed tax legislation, describing current law, proposed law, the Administration’s policy rationale for the proposals, and revenue projections. While the Green Book reflects the Biden Administration’s recommendations, Congress will be responsible for drafting and enacting any tax legislation.
It is not clear whether tax increase legislation will be enacted, President Biden’s tax increase proposals will need the support of all 50 Democratic Senators and nearly all House Democrats to be enacted over the expected objections of Congressional Republicans. President Biden has been holding talks on a potential bipartisan infrastructure package with a group of Senate Republicans, who have ruled out any increase in tax rates. While those talks are underway, House and Senate Democratic leaders have not yet begun formal consideration of an FY 2022 budget resolution that would be needed to provide ‘budget reconciliation’ instructions for consideration of President Biden’s tax increase proposals.
This Insight covers the provisions (and proposed effective dates) that are applicable to businesses.