The Treasury Department on 28 March 2022 published its “General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals” (traditionally known as the ‘Green Book’) providing additional details of tax proposals included in President Biden’s FY 2023 budget submission to Congress, many of which may affect high-income individual taxpayers and asset managers.
The 120-page Green Book comes at a time when Senate Democrats are attempting to advance the “Build Back Better” reconciliation bill (H.R. 5376) that passed the House with only Democratic votes last November. The House-passed reconciliation bill has been stalled in the Senate due to objections from Senator Joe Manchin (D-WV) over the legislation’s spending provisions and other issues.
Action item: Significant tax proposals affecting businesses and individuals may be enacted under budget reconciliation procedures if Democrats can secure the unanimous support of all Senate Democrats. Taxpayers may want to consult with their advisors on the potential effects of tax increase proposals on their personal financial situation, investments and short- and long-term wealth and philanthropic plans, and communicate with policy makers on the potential effects on job creation and investment in the United States.