The proposed budget for Fiscal Year 2023, released by the White House in late March 2022, emphasized a focus on deficit reduction and flexible social spending.
Following the release of the budget, the Treasury Department released the “Green Book,” a document that presents detailed explanations of the Administration’s proposals in support of the proposed budget.
Together, the proposed budget and Green Book represent the Administration’s aspirational plans for federal spending and revenue priorities and serves as a starting point for negotiations with Congress.
The current proposal seeks to fund many of the policies the Biden administration has emphasized over the last few years, including job growth initiatives, addressing supply chain issues, continuing to combat the effects of the pandemic, infrastructure development, and taking steps to address climate change.
Many of the tax changes put forth in the Green Book have been discussed in previous legislation, but while many questions and details remain as to how certain tax policies could be implemented and in what form, there are a few certainties:
- The proposed budget and Green Book only reflect the Administration’s policy ambitions.
- Any tax or spending legislation will be subject to much debate and negotiation in Congress before being passed into law.
- Currently, the Senate is evenly divided (with the Vice President casting tie-breaking votes) and there is a slim Democratic majority in the House.
- The federal fiscal year ends September 30, 2022, less than six weeks before the midterm elections. There is a strong possibility that any budget agreement may not be reached until after the election.
Download our full analysis to understand the proposed taxes that could impact you.