The Treasury Department on Friday released its “Green Book,” which contains details on the tax changes that the Biden administration is proposing to help fund the budget for the coming fiscal year. High-level descriptions of most of the tax proposals have been included in the Biden administration’s previously released legislative agendas. The Green Book provides explanations of the proposals and suggested legislative and technical changes required should they be adopted.
The 114-page document includes increases in the corporate tax rate to 28% and an increase in the individual tax rate to 39.6%, effective starting after the 2021 tax year. It also includes a book earnings minimum tax, significant changes to international taxation rules and elimination of the capital gains rate preference and step-up in basis at death (excluding $1 million in gains).
The Green Book provides a few details on President Biden’s proposed expansion in information reporting for financial institutions, which would apply to all business and personal accounts at financial institutions, including deposit accounts, loans and investment accounts. A $600 de minimis gross inflow threshold would apply to reporting, and Treasury would have broad authority to issue regulations for the proposed requirements, which if enacted would take effect starting after the 2022 tax year.