The Department of the Treasury has issued detailed information about the Biden Administration’s tax proposals for fiscal year 2022 for “the American Jobs Plan” and “the American Families Plan.” Traditionally, the tax community has referred to this annual publication as “the Green Book.”
Among the provisions in the Green Book are:
- Increasing income tax rates for those with the highest incomes;
- Eliminating the carried interest preference and the like-kind real estate preference for those with the highest incomes;
- Taxing capital income for high-income earners at ordinary rates to the extent income exceeds $1 million. The Green Book says that, “This proposal would be effective for gains required to be recognized after the date of announcement.”;
It appears that the “date of announcement” is April 28, 2021, the date that the Administration first detailed this proposal
- Treating certain transfers of appreciated property by gift or on death as realization events;
- More generous child tax credits, an expanded earned income tax credit, expanded child and dependent care tax credits, and more generous premium tax credits;
- Eliminating all fossil fuel tax subsidies;
- Expanding tax incentives that encourage clean energy sources, energy efficiency, carbon sequestration, and electric vehicle adoption;
- Investments in taxpayer compliance that would provide the IRS with additional resources and information.
Checkpoint will provide additional information about the Green Book in a future Federal Tax Update.
Subscribe to our Checkpoint Daily Newsstand email to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. It’s free!