Article Posted on 08/18/2021
The “Green Book” is a document published by U.S. Department of Treasury that explains the revenue proposals related to the President’s budget. The Green Book also includes estimates of revenue generated by budgeted tax proposals. The Green Book is not tax law; however, it can be a starting point for Congressional discussions.
On May 28, 2021, the Biden Administration released their proposed budget for the 2022 fiscal year. That same day, the Treasury Department issued the 114-page Green Book providing additional details of the Administrations tax proposals. Here are some of the tax changes included:
Increase corporate income tax rate
Introduce a 15% minimum tax on corporate book income
Increase top individual income tax rate to 39.6% from 37%
Tax capital gains as ordinary income when income exceeds $1 million
Create a new transfer tax at death on appreciated property
Create a new transfer tax at time of gifting appreciated property
Limit amount of gain deferral on like-kind exchanges
Kopsa Otte is watching closely as tax proposals come out of Washington DC. Stay tuned!